pay property taxes michigan Homestead on taxes ..?
I own a condo in Michigan, and recently moved to a different state. What address should I use on my taxes when I file?
My MI address or the current and why?
Also, for next year ( i know it is too soon), would I be able to use MI as my homestead ( I will still be paying property taxes, and mortgage interest, bc am not selling it or renting it out), and how would that work?
Thanks in advance : )
I am in MIchigan also and a licensed real estate agent.
Technically, you cant claim the MI home as a homestead because you really dont live there. For your income taxes – use the address where you want any refund or correspondence to go. I am not sure that the county/city government will find you and make you switch to non-homestead. If you dont own the place in your new state – it’s not like you are claiming that as a homestead – just temporary.
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pay property taxes michigan Foreclosure and property taxes?
I haven’t made a house payment since February… expect my home to go into foreclosure… What are the consequences to not paying the property taxes?
I live in Michigan.
Thank you
no consequences. when home is foreclosed one of the things the bank will need to do is pay all past real estate taxes.
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pay property taxes michigan Is this legal in Michigan court system?
Probate judge removed personal representative who was paying taxes, insurance and any other estate costs. He then replaced him with a court appointed personal representative (lawyer) who is not paying the property taxes the home owners insurance and the money is in the deceased ones account. He is causing home owners insurance to be canceled today and interest on property taxes because he is not doing his job. Are the court systems allowed to get away with this? Also we have no lawyer because he quit after trial. Thanking you in advance for any help.
Dear Boxadogbiscuits the lawyer was being paid and also filed a lien for more than what he is owed. He also deposited a money order into a family members trust fund that was suppposed to be paid to a witness. He also failed to admit our evidence during trial. Should I go on Boxadogbiscuits or should I consider the source. You must be related to a lawyer.
Something sounds fishy here. The personal representative is responsible for the day-to-day maintenance of the estate until it can be appropriately distributed to the heirs. It seems as if the original personal representative was doing just that, but for some reason the judge saw fit to remove that person and replace him/her with a new representative who is not upholding the responsibilities.
Contact the State Bar of Michigan to double check the duties are of the personal representative. You may also need to make a complaint about that the court appointed representative is not fulfilling those duties. The Bar may also be able to point you in the direction/help you find an attorney in your area that specializes in probate law and could advocate for your interests/make sure the estate is handled properly.
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Homeowners have rights Finally, while foreclosures in Michigan
From 5 July 2009, homeowners with mortgages have some rights after all in Michigan. In the past, when the home went into foreclosure, the lender could only advertising for four weeks in a legal newspaper that only lawyers went and the house could be sold at a sheriff's auction. While the lender was required, the announcement of the sale on the property post (for B. nailing it to a door), homeowners were often no actual notice that they would lose their homes.
In the interim If a homeowner had problems paying the mortgage and wanted to discuss a loan modification to agree on it like an appointment to personally the real Santa Claus to speak. Unanswered calls homeowners by phone number or have been transferred with little success. Some listen for hours phone menus, they led to nowhere. Since mortgages are often moved from one lender to another, or with companies whose task was to "service" they provided, It was often impossible to make your way to find anyone with information about the loan or the authority, deal with you and your credit.
That all changed is, when the Michigan legislature adopted new rules to the foreclosure law in Michigan. Under the new provisions (contained in MCLA 600.3404 by 600.3205e) before foreclosure proceedings can be started on a principal residence, the lender must actually enter the name, address and telephone number of someone you can with the authority of a loan Modification discuss with you.
In addition, the lender must give you the names of the housing consultant to help you find your way, a loan modification. If you request a meeting with the person, then no foreclosure proceedings may be initiated for 90 days. If you reach an agreement and comply with it, the partitioning can not go forward. If the lenders do not agree to a loan modification, you have to go right to a hearing before a judge.
The lender She has even advised by your right to an attorney and give you the number of referral to a lawyer of legal aid service. All of these instructions, you must first shipments of Class and certified mail will be sent. In addition, the lender a notice to be published in the newspaper that the homeowner the right to a lawyer and is in contact or the lender and / or a housing counselor. The homeowner has a right to go to court. The notification shall also contact information for the lender and advise the homeowner that if an agreement is reached to change the loan and the homeowner complies with the Agreement, there will be no foreclosure. The notice must advise the homeowner if he / she requests a meeting with the lender, foreclosure can not be started until 90 days after the date of this release was sent to the borrower.
Under MCLA 600.3205b if a homeowner wants to discuss a loan modification, it has a housing adviser from the contact list list provided within 14 days after the list of consultants is to him sent by the lender. The Judicial Council has 10 days to contact the lender. After financial information is provided on the homeowner to the lender and arranged a meeting between the person in homeowners and lenders. The consultant may participate if the homeowner, that access. If a loan modification agreement is not reached, then the lender must work with the homeowner to determine whether he was "eligible" for a loan modification. To be eligible, the total housing costs (including the house payment, property taxes, insurance, homeowners and all fees for instance) may 38% of the homeowners' gross income. This ratio could be achieved if, for example, the lender reduces the interest rate or extend the period for repayment of the loan or blocked payment of part of the loan until the end of the loan. The creditor has no Calculations provide, they have to the homeowner.
If the homeowner is "eligible" for the change in the meaning of the guidelines before and after Good faith and that the lender offered the homeowner a loan modification (but the owners do not agree), or if the homeowner is not eligible Loan modification, then the lender will proceed with a typical out-of-court sheriff's sale.
Unfortunately, this law has a "sunset" provision. It is on 5 July 2011 leak if not extended by the legislature. In the meantime, this law is certainly good news for homeowners in Michigan, especially those whose homes are underwater, "or those who have not been able to pay their housing costs in full each month.
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As a Certified Financial Planner, I’m often asked about issues regarding inheritance, gifting and the resulting taxes. Here’s a classic example of just how complicated these situations can be, using a question from a reader in Michigan we’ll call Bob.
Bob writes, “I have a question about my mom’s home that I inherited. Before my mom died she put her real estate into joint ownership between her and my sister. It was supposed to help make settling her estate easier. Before mom passed away, my sister died. After my sister died, mom placed the real estate jointly between herself and me. Mom passed away over a year ago and I am now contemplating the sale of her house. After mom’s death I had the home transferred to my and my wife’s names.
What are my capital gains liabilities on the sale of the house? Do I pay capital gains on the whole sale, half the sale, or none of the sale?”
Bob’s lack of knowledge is nothing out of the ordinary. Few people are aware of the tax implications and needlessly end up creating a tax headache for themselves and their loved ones.
Let’s explain what an inheritance is and how it differs from a gift. An inheritance is money, property, or another asset of value that is transferred after death. A gift occurs when money, property or other assets are transferred before death. An inheritance and a gift are handled very differently from a tax standpoint.
Each of us can give gifts up to $12,000 per year to any person we want without any Federal tax implications. (There may be some state gift tax implications so check with an accountant.)
Inheritances aren’t subject to Federal Estate Tax unless the estate’s value is over a certain amount, which is currently two million dollars. Because all assets owned by the deceased are included in the estate’s valuation (i.e. retirement accounts, annuities, life insurance, etc.), reaching that two million dollar limit is easier than you think.
Even if there is no gift or estate tax when the assets are transferred, there can be capital gain taxes when the assets are sold. The trick is determining the asset’s original value, or cost basis, and that depends on whether the asset was a gift or an inheritance.
When you receive a gift, you also receive the cost basis the person giving the gift had. So, if a parent paid $10,000 for a home and it was worth $100,000 when it was gifted to the child, the child now has a cost basis of $10,000. If the house is sold 5 years later for $125,000, the child will owe taxes on a gain of $115,000.
If the house was instead inherited by the child, the cost basis is the value of the house at the time of inheritance, which in our example would be $100,000. So when the house is sold 5 years later for $125,000, the child only owes taxes on the gain of $25,000. In tax parlance, the house received a step-up in basis when transferred after death. It doesn’t receive a step-up if transferred prior to death.
Let’s apply this to Bob’s situation. When Mom added Sister’s name to the deed, it was a gift to the sister of 50% of the value of the home and Sister’s cost basis was 50% of Mom’s cost basis.
When Sister died and the house transferred back to Mom, it was considered an inheritance. So Mom’s cost basis on the 50% she inherited was the market value at the time she inherited it back. So 50% of Mom’s ownership is based on her original cost basis and the cost basis of the other 50% is the value at Sister’s death.
When Mom then adds Bob’s name to the property, it’s another gift. So Bob will inherit 50% of Mom’s new, adjusted cost basis. When Mom dies and the other 50% is transferred to Mr. K, his cost basis in that 50% is the value at the time of Mom’s death. Now you know why accountants make all that money!
If Mom had used a Living Trust instead, there would have been no need to add names to her house and her heirs would have 100% of stepped up cost basis, saving thousands of dollars in taxes.
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pay property taxes michigan Does anyone know where I can get help with paying my property taxes in Saginaw, Michigan?
Unless Saginaw, MI has a program for temporary hardship deferrals on property taxes (usually limited to things like major medical hardships), there is no way to obtain money to help you pay property taxes. You own property, an asset. They will put a tax lien against the property. You then either pay the taxes and get the lien released, or it will be paid through sale of the property.
See your tax collector’s office for your city and inquire. But don’t expect any joy.
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pay property taxes michigan Will I still owe property taxes if I walk away from my house?
I have a house worth $49,000 that I paid $107,000 for and owe $100,000 on. If I get a job in another state and need to move, I won’t have time to negotiate a short sell and there really aren’t any buyers in Michigan in this area anyways. I can’t afford to keep paying on the house and pay rent on top of that. So, if I just walk away, what happens with property taxes? Will I still owe them even if the house goes into foreclosure.
Not interested in the moral arguement of “walking away”; sometimes you have to do what you have to do to survive. I’m under as much obligation to keep paying for a worthless house as my company is obligated to keep me employed and happy.
I hear this from many people who believe they can just walk away from the property, and if you do, here is what will happen, this is not speculation, but fact. One, once you do not make a mortgage payment for 30 days, you will have a late on your credit report. By the time the property forecloses, you will have many lates and this will take at least a year to cure off your credit report. Two, depending on how long it takes, the county could place either a judgement against your and/or a lien against your property for not paying taxes. Three, you go through foreclosure and your talking about 3-10 big black eye on your credit. Sorry to be blunt, but that is the reality, if you think you can just walk away, it does not work that way, you will pay the price down the road. While I understand you may not have the time, get in touch with a realtor and look into the short sale, give the realtor copies of your financials, ie paystubs, bank statement, hardship letter, tax returns for 2 years. That way, besides the standard contracts, you shouldn’t need too much more documentation. and just to let you know, I close about 2-3 short sales in Michigan a month, so there are buyers
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pay property taxes michigan Property taxes for investment property in Detroit, Michigan?
We already have a house (first home) that is only on my wife’s name, and we would like to buy a condo to rent it out. They told us that taxes on the condo would be a bit higher than usual because it’s a second home. If I buy the condo on my name only would it be considered my first house, so that I would pay lower taxes on it?
I suggest speaking with a real estate attorney to get this information.
Based upon your brief explanation, it might be considered fraud (a federal crime) to obtain a mortgage stating you will be occupying the home and then rent it out.
There may be exceptions to the rules, but for the few bucks you’d save It may not be worth it. Keep in mind, as a landlord you would be able to write off all expenses including taxes from income received.
Maximize Your Deductions!Product InformationIncludes FREE Federal E-File! Get Your Refund Fast: E-File Your2008 Taxes with TurboTax. Here’s how E-File works: Start your return andE-File with TurboTax today. The moment the IRS starts accepting returnsscheduled for January 16 2009 TurboTax will submit your E-Filed return. TheIRS will confirm receipt by e-mail within 48 hours.TurboT…