Robert L. Brown~Grand Rapids Real Estate Bellabay Realty, West Michigan

Principal Residence Exemption forms.

More relief for the homeowner that has 2 properties that want to retain their principal resident status on both properties. Below is information concerning this. There is email addresses and numbers if you have any questions below. With anything there are certain guidelines you will have to follow.

Principal Residence Exemption Forms Now Available- Must be Submitted to Assessors by May 1

As a follow up to MAR's e-news alert last week regarding the Passage of Public Act 96 (see article) which enables home sellers to retain two principal resident exemptions for property still on the market after the seller has moved elsewhere in the state, the “Conditional Rescission of Principal Residence Exemption Form #4640" form from the Department of Treasury is now available. To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008.

Click Here to Download Form.

Public Act 96 enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner’s principal residence that is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption Form #4640. The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met:

• the property is not occupied,

• the property is for sale

• the property is not leased

• the property is not used for any business or commercial purpose

*The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not retroactive to previous tax years.

Again, To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008. The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of an owner if a deadline is missed or for previous tax years. An owner must annually submit Form #4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.

The Department of Treasury is in the process of developing a Frequently Asked Question sheet to address various issues related to the new conditional rescission. They hope to have those questions posted on the web some time next week. Form #4640, which includes an instruction page, can also be found at www.michigan.gov/taxes.

If you have any questions regarding conditional rescissions, please feel free to contact the PRE Unit at (517) 373-1950 or email Patrick Huber, Manager of the Property Tax Exemption Section, at huberp@michigan.gov.

For all your real estate needs please call:

Robert L. Brown

FlexIt Realty

616 366 7030

www.mrbrownsellsgr.com

Michigan Transfer Tax Relief..

Just when you thought there was no hope in the process of selling your home which in this market can be a tough sell there is "some" relief. As we all know one of the criteria for the sale of your home (whether you work with a realtor or your trying to sell it yourself) is you have to pay a Transfer Tax at time of closing.

This tax amounts to .86 times the number of thousands (sales price). .75 to the state and .11 to the respective county. Knowing that we're in a declining market some of the SEV's have fallen and before someone stood up and took notice you had to pay that at time of closing. The requirements to possibly get this relief is set forth as:

•1. Property has to be your principal residence. (Homestead Property)

•2. The SEV (State equalized Value) for the calendar year in which the transfer is made must be less than or equal to the property's SEV for the calendar in which the transferor acquired the property

•3. The property cannot be transferred for consideration it's true cash value for the year of the transfer.

Now there is an example in the link below and hopefully it will bring relief to you the homeowner but be aware if someone tries to use this exemption and they were not supposed to there will be a penalty. Investment properties will not be able to use it. I repeat it has to be your principal residence. With short sales and foreclosures rampant now a penny saved is still a good thing. Please look at the link below:

http://www.grar.com/memberdocs/GRARMEMBER/AG_OPINION_MI_TRANSFER_TAX.PDF

For all your real estate needs feel free to call:

Robert L. Brown

FleXiT Realty

616 366 7030

www.mrbrownsellsgr.com