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ARE YOU ELIGIBLE FOR A REFUND ON YOUR PAID TRANSFER TAX

Wednesday, August 12, 2015
by Tom Stachler,ABR,CDPE - Group One Realty Team

Ready for your Transfer Tax Refund?

Usually, tax info in NOT good news, but hold on, I have some great information for you.  

As a Seller, Have you had a closing since 2011?  If so you maybe eligible for a refund of the state transfer tax you paid at closing.  The amount you would have paid would have been equal to roughly about $8 / per thousand of your sales price.  (Sale price / 1000 x 8.00)

The Michigan Supreme Court recently interpreted one of the exemptions to the State Real Estate Transfer Tax, greatly increasing the number of sales that qualify for the exemption. If the State Equalized Value (SEV) of the Home at the time you bought it is more than the SEV at the time you sell/sold it (it decreased in assessed value), and the sale was an “arm’s-length” or fair market transaction, the sale is exempt from the State Transfer Tax.  

Previously, you also had to show you sold the home for less than twice the SEV. You no longer have to meet that second requirement, meaning many are entitled to a refund of the State Transfer Tax.

Call or email me if you have any questions.  I have an attorney I can refer you too if you want to check to see if you are eligible and want to petition the state for a refund.  Their fee is quite reasonable and well work the extra money you will be left with after the refund.  

 

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Sellers Might be Exempt on State Transfer Tax

Thursday, November 12, 2009
by Group One Realty Team - Real Estate One

With lower property values due to our struggling economy, many homeowners have been able to take advantage of an exemption contained in the Michigan Transfer Tax Act.  If a seller meets the criteria, they would be exempt from paying the state transfer tax.  Following are the criteria:

  1. The property must have been occupied as a principle residence – classified as homestead property.
  2. The property’s SEV for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the seller acquired the property.
  3. The property cannot be transferred for consideration exceeding its “true cash value” for the year of the transfer.


For example:
If the SEV of the homestead principle residence when acquired in 2005 is $100,000 and the current SEV on the property is $90,000, then the first two criteria have been met.  To establish the “true cash value” of the property, you must double the current SEV at the time of transfer.  In this scenario, the true cash value would be $180,000.  If the property sold for $170,000, then the 3rd criteria has been met of Exemption “u” as designated by the Michigan Transfer Tax Act.

If you believe you may be eligible, you have up to 4 years from the transfer date to file for the exemption.  It is also important to note that there are no similar exemptions in the County Real Estate Transfer Tax Act.

To see if you as a seller are eligible, please contact our office for a copy of the “Transfer Tax Exemption Worksheet.”   

As always, thank you for your consideration and referrals.

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