Our Real Estate practice works with developers, brokers and investors in the commercial and residential arenas. We provide advanced tax planning, consulting and compliance services, as well as wealth management techniques.
The Mortgage Credit Certificate program has issued a federal tax credit to first time homebuyers statewide. The homebuyer can credit 20 percent of their annual mortgage interest paid against their federal tax liability. This credit is good for the life of the mortgage. There are only certain mortgage companies that are participating in this program.
When an individual transfers real estate in the state of Michigan a real estate transfer tax fee is charged, which is percentage of the sales price. This fee is assessed both by the state and the county in which the property was sold. This fee is the seller's responsibility, unless otherwise agreed upon, and is reported on the "Real Estate Transfer Valuation."
On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act ("ACA"). Although the ACA has not been fully implemented, some of its provisions have already taken effect.
Since the enactment of the Economic Growth and Tax Relief and Reconciliation Act of 2001 ("EGTRRA") up until the enactment in December 2012 of the American Taxpayer Relief Act of 2012 ("ATRA"), estate planners have had to plan around tax provisions that were expressly stated to be temporary in nature. ATRA has now provided rules governing the estate tax, the gift tax, and the generation skipping transfer tax ("transfer taxes") that are, at least according to ATRA, permanent (i.e., not subject to "sunsetting" at some fixed date in the future).
April 2012 saw a dramatic decline in any meaningful discussion of fundamental tax reform. Congress was nevertheless active in attempting to enact incremental tax law changes. First up were efforts to curtail various tax breaks now enjoyed by the oil industry. Next on the Congressional agenda was consideration of Representative Eric Cantor's (R-VA) "Small Business Tax Cut Act," discussed in last month's Newsletter. This legislation would give certain small businesses a tax deduction of up to 20% of the business' active income. The Senate's Democrats countered with their own small business tax cut bill, the "Small Business Jobs and Tax Relief Act of 2012." And, Democrats in the Senate are trying to advance President Obama's "Buffett Rule" through the "Paying A Fair Share Act" (S. 2230).