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."
Pursuant to a recent decision by the Michigan Supreme Court in July of 2015, individuals may be eligible for a refund of real estate transfer taxes they have paid within the last four years. In addition, going forward sellers may be exempt from incurring this tax when they transfer property. The following requirements must be met to qualify for exemption or refund:
Therefore if you have sold your primary residence in the last four years you should review the SEV at the time of sale versus the SEV at the time of purchase to determine if you are eligible for a refund of the transfer tax paid.
For more information or questions on this topic, please contact your local UHY LLP professional.
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