Archive for the ‘Uncapping Property Taxes’ Category

Cottage Law and Using Gifting to Avoid Estate and Gift Taxes

Going, Going, Gone!

Tax-free transfers – gifting – of the family cottage to future generations via a cottage succession plan is a great opportunity for cottage owners to enjoy considerable tax savings while real estate values are suppressed.Gifting to Avoid Estate and Gift Taxes

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Protect the Family Cottage Common Questions About Types of Ownership Forms

Cottage Law BlogMost people would think “economic value” is the most important factor to protect the family cottage. Common “emotional value” has proven time and time again as the most important motivation behind developing a cottage succession plan to protect the family cottage.

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Real Estate Taxes and Joint Ownership of Michigan Real Property and Cottages

The Practical Effect of Michigan Supreme Court’s Decision in the case of Klooster v City of Charlevoix

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Keeping the Family Cottage – Cottage Succession Planning and Forms of Ownership

Cottage Law BlogThey say, “beauty is in the eye of the beholder.” That’s especially true when applied to the family cottage. Whether the family cottage is a small rustic cabin on a pristine lake or stream, a luxurious retirement home on one of the Great Lakes or ocean shore, or a family retreat in some stunning mountain region, it’s not “economic value” that is the most important factor in keeping the family cottage, it’s the “emotional value.”

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TAX ALERT – Michigan Governor Snyder Releases 2011 Executive Budget Proposal Which Could Affect Family Cottages

Budget Proposal Includes Anticipated Proposals to Change Both Tax and Spending Policies

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Uncapping of Property Taxes Makes it to Michigan Supreme Court

Uncapping of Property Taxes in MichiganThe Michigan General Property Tax Act (the Act) requires real property in Michigan be assessed yearly and taxed at one-half (1/2) of its true cash value (true cash value is the same as market value). However, with the passage of the Headlee Amendment to the Michigan Constitution in 1994, limitations were placed on how much assessments and taxes could go up each year. Since 1994-1995, annual property tax increases have been “capped” at levels specified in the Act and remain capped until a “transfer of ownership” occurs. Once a transfer of ownership occurs, the property is reassessed at one-half (1/2) of the “true cash value” as of that date and the taxes, in most cases, go up substantially. The property tax is capped at the new, higher amount until the next transfer of ownership takes place (Michigan property tax bills show a “Taxable Value” and a “State Equalized Value.” The Taxable Value is the capped value upon which the property tax is assessed. The State Equalized Value approximates one-half (1/2) of the true cash value/market value of the property. Once the property tax is uncapped, the State Equalized Value and the Taxable Value become the same for the year in which the uncapping occurred and the cap goes back into effect at that amount).

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