Homestead Act In Simple Terms In Michigan
Description
Form popularity
FAQ
You may file a claim for your new home before May 1 of the following year by filing a Homestead Exemption Affidavit (form 2368) that is available at closing or from your local assessor.
The State of Michigan does not currently offer a property tax exemption for senior citizens. However, Senior Citizens are entitled to the Homestead Property Tax Credit.
You must live in the home to qualify for the tax break. Some states exempt a certain percentage of a home's value from property taxes, while other states exempt a set dollar amount. If your state uses a percentage method, the exemption will be more valuable to homeowners with more valuable homes.
A property tax exemption for real property owned and used as a homestead by a disabled veteran or the disabled veteran's un-remarried, surviving spouse.
Under U.S. tax law, a home qualifies as your principal residence only if it follows the 2-out-of-5-year rule. This rule states that someone must live in a home for a total of 2 years (or 730 days) out of a 5-year period.
To claim a PRE, the property owner must submit a Principal Residence Exemption (PRE) Affidavit, Form 2368, to the assessor for the city or township in which the property is located.
Michigan law defines principal residence as the one place where a person has his or her true, fixed, and permanent home to which, whenever absent he or she intends to return and that shall continue as a principal residence until another principal residence is established.
What determines principal residence? The test the Michigan Department of Treasury uses to determine principal residence includes such things as where you are registered to vote, the address on your driver's license, where your children attend school, and the address from which you file your income tax returns.
The address listed on your: U.S. Postal Service address, Voter Registration Card, Federal and state tax returns, and. Driver's license or car registration.
