pay property taxes michigan Is it normal to have to pay a seller’s non-homestead regardless of buyer’s status?
I’m buying a condo in the state of Michigan, and the taxes for this year were paid by the seller at a non-homestead rate, which is much higher than homestead rate. I’m being prorated to reimburse the seller for the part of the year when I will be living in the property, which I understand, but am I required to pay the non-homestead rate even if I am going to live at the property as my primary residence?
In Florida you would have to pay the rate charged on the house if it was homesteaded or not for the year in which you purchase the property. The seller will credit you at closing for the time that he owned the house and you would be responsible for the remaining months. Since it is a credit at closing you would be the one to actually pay the entire amount.
In 2009 you would apply for homestead exemption which would apply for that year. You should call the property appraisers office and see how things work in your State and in your city.
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pay property taxes michigan Can a senior citizen (80 yrs old female) in Michigan be exempt from paying her property taxes?
My girlfriends mother has been paying taxes on her house for several years. She is 80 yrs old. Is their someone to contact to find out about her being exempt from these payments. I have heard that because of her age she shouldn’t be paying property taxes.
Never heard of that before. Anyone that owns a home, no matter how old they are, has to pay taxes on that home. That’s the way it is in CA and I’m sure it’s this way in the other states.
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pay property taxes michigan How much are property taxes?
I am thinking about purchasing a home, and wondering how much I would have to pay annually in property taxes. Does any one know where I may be able to find out how much they are in my area? (I live in Michigan, if that helps)
You should be able to find the info online. Google in your county along with CAD (for example if you live in Kent county, google Kent CAD). If that doesn’t work try googling it with your county and Central Appraisal District.
If you do find the site, you should be able to see the value of the homes you might want to buy and how much the taxes are.
I also found this site for Michigan Property taxes for you:
If none of the above works, just ask the realtor. When you look at homes, they will tell you how much the taxes are. Don’t forget to file for Homestead Exemption so you get a little bit of a discount!
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pay property taxes michigan Tricky State Tax Question?
For the first half of 2008 I lived in North Carolina and will pay state taxes there.
In the middle of 2008 I changed jobs. I am paid from a Michigan employer and Michigan taxes are being withheld, but I do not live in Michigan. I live outside of the US with no “home” in the US. I still have a property in NC, but that is rented out. I have no other apartment or house in the US, rented or owned.
What state will my state tax obligation be to for the second half of 2008? Michigan or NC? Is my situation gray enough, that it is my choice?
If you are a U S citizen, all your income is taxable on form 1040. The MI employer should withhold taxes for the state in which you reside. If you resided outside the U S no state tax is due on this income.
I would file a MI income tax return, with a letter of explanation stating no income earned in MI. The income is earned where you live and you did not live(reside) in MI. Claim all the withholding as a refund.
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Turning $422.00 into a whopping $64,928.08 is not magic and it does not require a Harvard Business School education or any degree for that matter! It simply requires knowledge of Tax Liens & Tax Deed Certificates & a certain amount of street smarts.
Do Not Be Afraid To Ask A Few Questions
This is the story of a single woman who had desire and was willing to learn and not be afraid to ask a few questions. Most people are hesitant to ask about what they do not know or understand. They get nervous and embarrassed. Instead of learning, they travel life’s road without nice cars or fancy homes or even the security that they want and long for, all because they won’t ask questions and educate themselves.
Janice Knetzger of California wasn’t afraid. She was single and eager to learn how she could earn 15% and much more on her small investment portfolio. When her boyfriend suggested that they travel to Michigan and investigate Tax Lien & Tax Deeds, Janice said, “YES!” even though she had never really heard much about Tax Liens or Deeds. Janice had no real estate license and had only been involved in one purchase and that was the home she lived in. Just the same, she said, “Yes”, and traveled to Michigan.
Why Michigan You Ask?
Because the state law requires delinquent property owners to pay a 15% penalty year one and a 50% penalty year two. There was no book in the library that could tell her what to expect or even give her basic information.
However, she could instantly see the profits were attainable just with the percentages she was shown. After searching the shelves at the book store and not finding a single Guidebook, Janice knew she was off on an adventure. At first, she was a little apprehensive, and later, she became slightly intimidated, but she persisted.
Her boyfriend was eager and motivated to “crack the code” and learn how to make real money on his own. The prospect of making 15% in the first year on a secured investment and a whopping 50% in the second year kept him motivated. After all, where else could he hope to make 50% and get the security of a government check?
When they arrived in Michigan, they started at the county records. They soon learned that hundreds of property owners fail to make payments on their annual property taxes. The local government officials doesn’t like that because it means the government will be short of needed revenue. That missing revenue is scheduled to pay for roads, schools, policemen, fire services and many other government services. To make up the short fall in revenue, the government sells Tax Lien Certificates on each of the delinquent parcels.
The Government Takes Action
The government takes action to bring in the revenue by selling the Tax Lien Certificates at an auction to anyone who is willing to pay the back taxes. The short fall the property owner creates by not paying ad valorium taxes is auctioned off to bidders at a public auction. The reward to the bidder who buys these Tax Lien Certificates is 15% in year one and, if the property stays delinquent into year two, it rises to a 50% interest rate. This penalty is paid by the property owner and, if they fail to pay taxes in year one and two, the property can ultimately be lost to the Tax Lien/Tax Deed buyer. If the property owner fails to pay for a longer period, they forfeit the property to the Tax Lien Certificate holder. That could be you!
Just imagine yourself paying the delinquent taxes on a home. Say one year’s delinquent taxes are $1,000, and the value of the property is, say, $100,000. In year two, the property owner fails to pay once again and you pay the delinquent taxes shortly thereafter, the government will allow you to take the property by an act of foreclosure. You, the Tax Lien Certificate holder, become the new owner, due to the forfeiture and foreclosure action. Janice Knetzger purchased a Tax Lien for only $422.00 and she ended up with the property. The story gets better: Janice never saw the property! After her purchase, she contracted to fix up and rent the property to others. She never saw the property for ten years; however, she successfully rented the property for $500 a month, or $6,000 per year, for ten years! She received $60,000 in rental income during that period. Not bad on a $422 investment. After ten years of ownership, the family renting the property purchased it from Janice and paid her an additional $64,928.28. Ask yourself this: if you made one deal like that, would you be living in the same house and driving the same car??? I don’t think so! Janice enjoyed the rental income and tax benefits for ten years. At the time of sale, she enjoyed a capital gain of over $60,000. Oh, yes, Janice had to do some work. The foreclosure and quit title action was a legal process.
Michigan has since revised its laws and is now known as a Tax Deed state. The rules for bidding on delinquent taxes are changed; however similar opportunities are still available in other states. Do your homework and take advantage of this money-making miracle, so few investors are willing to tell you about!
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Whether you are looking for a quiet retreat away from it all or are you a bit more Activity such as fishing or water sports then hope, look no further than a house on the lake.
In Michigan, there are a variety of lakeside property to your interests without Effort to meet your budget and over the years, many families are pleased that Michigan has to offer lakeside properties enjoyed. If you hope that a these families, it is important that you be with the local laws which may affect you as the owner of the water.
Thanks to the many lakes, the border and appear in Michigan, lakefront property within this state has grown to the height of structures that are there, and also in terms of popularity. Some of the lakes appear in Michigan, and are now be used as the basis for these properties of water Higgins Lake, which is considered the sixth most beautiful lake in the world, Lake Michigan, probably the most popular lake in the state's major and Lake Superior, known for its great fishing. Win a house under one of these lakes would meet the needs of everyone, whether you are a nature lover, a straw hat or an extreme sports enthusiasts.
The possession of a lake access allows you a unique and impressive have visual appearance. Lakeside properties are usually large with plenty of space for entertaining and many often contain a private balcony. Michigan lake property includes everything from small cottages to expansive luxury homes on the water and charming beach cottages to the latest in modern custom designs, which show that, regardless is your hobby or personality it from a lakeside plot that's right for you.
If the owner of a lakeside estate in Michigan and in every state the United States is sometimes referred to as a status symbol, but one thing is sure that the value of this lakeside properties is on the rise, making them a sound investment, the years of fun and family vacation can offer. It is estimated as an asset that can be rented or used as collateral for a loan.
Before any hasty Decisions about buying a property you should check it at the lake, full, whether a lake access is for you. There are always pros and cons of any decision which we consider in our lives and we need to take these advantages and disadvantages to make the right decision. If you have small children or family pets, you must carefully be, about the danger of drowning and the use of fast boats in the water. Also remember lakeside homeowners have to pay higher taxes than other owners and maintenance costs are high by the situation.
It does not matter what type of lake access, you hope to become the owner that it can be made possible with a little help. To ensure that your wishes and needs are covered when it get to the lake home that you want, it is important that you help a lakefront estate agent, hire comes, who specializes in water, Michigan real estate, trust me they know what they say so is to advise its the best tool to make your dream Lake front is safer today.
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Urban Land Reform Initiative Stabilizes Neighborhoods: Innovator’s Focus
pay property taxes michigan legal & tax advice buying a home for in-laws (michigan)?
my wifes parents are claiming bankruptcy (business closed) and are leaving their house. we would like to buy a housethey could stay in, near to us (within 5 miles). Some lenders require more (down payment/higher rate) because this is an “investment property” but i have been told that they are family and this could be my second home (lower down/lower rate). my attorney states that we should have a lease, and would pay taxes on a fair market rent, but we dont plan on charging them. Will I have to pay taxes on a non-existent income? can I still get the tax deductions for mortgage interest and city taxes I pay? can they homestead the property? I’m lost. any knowledgeable direction is greatly appreciated. Basically, can I buy a second home for myself and let my in-laws stay for free? Will I have claim this as income producing (even though it’s not)? Are tax advantages better one way or another?
Dude you have an attorney and not a accountant? Your questions are all valid, for a accountant. The laws change state to state. A good loan officer will know the answers and they can direct you towards the best loan for your situation.
If you sign your in laws to a lease to show additional income for you, the bank will want a rental history or in your case mortgage history and that wont look good. Yes you can write off the interest on your loan, no they can not homestead the property unless they are on title. You see what I mean you need a good LO.
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Homebuyers – You’re Pre-Approved by Payment, not Purchase Price!
July 26, 2009 — Troy, MI – A homebuyer follows instructions and jumps through the hoops (which are many today) necessary to get a pre-approval letter before looking at homes for sale. They find one they like, at a price their pre-approval letter says they’re good for, make an offer, negotiate back and forth with the seller and finally agree on a price. They’re elated.
Then the rug gets pulled out from under them and they’re told they don’t qualify for this house and all their efforts were in vain.
What’s even scarier is that often the homebuyer doesn’t find out they don’t qualify for the property they got their hopes up for, until weeks into the formal approval process, sometimes only days before the target closing date.
Why does this happen?
The lender they were dealing with didn’t do a very good job of explaining how the mortgage industry actually approves homebuyers. Even if they did, it was just one of the numerous topics discussed and the homebuyer forgot about it. Then, the lender didn’t double-check the pre-approval requirements for the specific property.
Because of issues like this, it’s extremely important that homebuyers understand the following:
MORTGAGE APPROVALS ARE MOSTLY BASED ON MONTHLY HOUSING PAYMENTS NOT PURCHASE PRICES!
Let’s study the pre-approval process to understand why.
A homebuyer only makes so much money per month, which means they can only afford to spend a portion of that income on a monthly housing payment. The rest of their income goes towards various income taxes, car payments, credit card payments, student loans, etc. On top of that, unless the homebuyer wants to freeze in the dark during winter, they have to pay utilities to keep the heat & lights on (if you’re outside the snowbelt, think air-conditioning).
If you think about this, it makes sense.
Now, let’s look at an example homebuyer:
Annual Income: $75,000
Monthly Debt Payments: $1,000
How much of a housing payment would this person qualify for?
First, let’s break the annual income down to a monthly basis: $75,000 / 12 = $6,250/month income.
FNMA/FHLMC typically allows 40% of one’s gross monthly income to go towards monthly debt, including a housing payment. The 40% number is called a Debt Ratio. The other 60% of monthly income is allocated for income taxes, utilities, food, clothing, car insurance & gas and other necessities of life.
So, to calculate the maximum amount of monthly debt allowed we calculate 40% of the monthly income:
$6,250 x 40% = $2,500.
But, our example homebuyer already has $1,000 per month in existing debt. That money then, cannot be allocated towards a housing payment. So, we calculate what’s left:
$2500 minus current debt payments of $1,000 = $1,500 for a maximum housing payment
This is what our example homebuyer could afford. Now, they don’t have to spend that much of course. There are also other variables that could allow for a somewhat higher housing payment. For example, if the homebuyer put 20% down, the 40% debt ratio might be allowed to increase to 45% as the higher down payment compensates for the higher debt ratio.
Now that we know our example homebuyer’s maximum housing payment we’re done right? Wrong – houses are sold by price, not monthly payments. So now we have to convert the maximum housing payment to a purchase price.
Here we run into a problem. It’s actually the reason many pre-approval letters are misleading and homebuyers get unpleasant surprises.
The term “housing payment” is not the same thing as a mortgage payment. The mortgage industry considers a housing payment to include the following:
Mortgage payment
Monthly amount for property taxes
Monthly amount for home insurance
Monthly association fees
Property taxes are usually the biggest unknown when pre-approving a homebuyer for a home they haven’t identified yet. Depending on the state your in, property taxes can vary significantly for similarly priced homes. Let’s look at an example:
Assume:
Loan amount: $200,000
Interest Rate: 5.250% (APR 5.891) no PMI
Home insurance: $900 annually
If we compare these two monthly housing payments to our maximum payment allowed of $1,500, you can see that our example homebuyer would not qualify for property #2 – even though it had the exact same sales price as property #1.
We’ll leave the reason as to why property taxes may vary on similarly priced properties to a future article. For now, just ask your local real estate expert.
How can a homebuyer address this problem? Simple, demand something in writing from the lender you get pre-approved by, that specifically states the maximum payment you’re qualified for. While they’re at, they should also disclose the interest rate they pre-approved you at. Interest rates change daily and if it takes you a month or two to find a property, higher rates could affect your pre-approval purchase price just like property taxes.
Real estate agents also need to understand this issue to better assist their homebuyers. Agents should contact their homebuyer’s lender with the property taxes and any association fees to confirm the homebuyer does indeed qualify for the specific property, before writing an offer.
Understanding the process, putting specifics in writing and relying on true professionals can remove many of the unpleasant surprises in the pre-approval and home buying process.
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pay property taxes michigan Short Term Capital Gains Rate – Michigan?
I just sold an investment property I held for 4 months. I have to pay short term capail gains. Can anyone tell me what those rates are for Michingan. I beleive they are 28% for Federal. Also what forms must I fill out to pay estimated taxes for this sale to both the Fed and Michigan. Thanks!!!
For Federal it is whatever your normal tax rate is, which depends on what other income and deductions you have (but without know anything about your situation 28% is probably a decent amount to use if you just want to estimate how much you’ll owe). For Michigan it is 3.9%, the same rate as for all income – Michigan doesn’t have a different rate for capital gains, everything (wages, interest, capital gains, etc.) are all taxed at the same rate.
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