playin4beer
Footballguy
Michigan
After living in our house for almost 30 years, we recently (November) had the opportunity to buy my parents house, on a lake. One of the big benefits (or so we thought) of buying my parents house was that the taxes wouldn't get uncapped. They've been in their house for almost 20 years and our taxes were pretty close to the same. Fast forward to this week and our tax assessment comes in and our taxable value went thru the roof. I called on it and because me AND my wife are on the deed, they can uncap 50%. They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us". Anybody have any insight on this?? Is it possible to have a "corrected deed" done in just my name? or has that ship sailed?
UPDATE:
I had taken my case to our local Township for the Board of Review to argue my case in 2024.. They said they were unfamiliar with the law and directed me to file with the Michigan Tax Tribunal for a hearing, which I did. In the meantime, I had been doing a ton of research on the subject and my argument was, in the State of Michigan, partial uncapping of taxes cannot be done in the case of a joint entity, which my wife and are. But it never specifically said "spouse" anywhere in the law, leaving it open to interpretation. Fast forward to today and I finally had an email saying a judge has been assigned to my case and I have a phone hearing May 27th and to submit any documents for my case 21 days in advance. So I go back to michigan.gov to get what I need for my case and they have added another entry to the law pertaining to "transfer of ownership".. It now states:
Is a transfer of property from a parent to a child and their spouse a transfer of ownership? Beginning in 2025, the Commission will offer the following guidance for current and future application. No. When a deed is conveyed to a husband and wife, the property is held as a tenancy by the entirety unless the deed expressly provides otherwise. In a tenancy by the entirety, the husband and wife are considered one person in the law, each would own an undivided share in the subject of the property with a right of survivorship. If the property conveyed was classified as residential real and if the use of the real property does not change following the transfer of ownership, this would be an exempt conveyance under MCL 211.27a(7)(u).
Short version:
I was right.
After living in our house for almost 30 years, we recently (November) had the opportunity to buy my parents house, on a lake. One of the big benefits (or so we thought) of buying my parents house was that the taxes wouldn't get uncapped. They've been in their house for almost 20 years and our taxes were pretty close to the same. Fast forward to this week and our tax assessment comes in and our taxable value went thru the roof. I called on it and because me AND my wife are on the deed, they can uncap 50%. They said for it to stay capped, it would have had to be just in my name. And then I could have added her to it without it being uncapped because she's my wife. But it can't go from my parents to "us". Anybody have any insight on this?? Is it possible to have a "corrected deed" done in just my name? or has that ship sailed?
UPDATE:
I had taken my case to our local Township for the Board of Review to argue my case in 2024.. They said they were unfamiliar with the law and directed me to file with the Michigan Tax Tribunal for a hearing, which I did. In the meantime, I had been doing a ton of research on the subject and my argument was, in the State of Michigan, partial uncapping of taxes cannot be done in the case of a joint entity, which my wife and are. But it never specifically said "spouse" anywhere in the law, leaving it open to interpretation. Fast forward to today and I finally had an email saying a judge has been assigned to my case and I have a phone hearing May 27th and to submit any documents for my case 21 days in advance. So I go back to michigan.gov to get what I need for my case and they have added another entry to the law pertaining to "transfer of ownership".. It now states:
Is a transfer of property from a parent to a child and their spouse a transfer of ownership? Beginning in 2025, the Commission will offer the following guidance for current and future application. No. When a deed is conveyed to a husband and wife, the property is held as a tenancy by the entirety unless the deed expressly provides otherwise. In a tenancy by the entirety, the husband and wife are considered one person in the law, each would own an undivided share in the subject of the property with a right of survivorship. If the property conveyed was classified as residential real and if the use of the real property does not change following the transfer of ownership, this would be an exempt conveyance under MCL 211.27a(7)(u).
Short version:
I was right.
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