taxable value of apartment

Forum|Forum|1 year ago
February 3, 2025
1 reply
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Moved from apartment to home in Michigan. Trying to claim credit for rent paid. I am being asked for taxable value of property. I know the value of my Condo, not my apartment. I have never been asked this before.

AmyC

Employee

MI allows 23% of rent paid, usually. See MI-1040CR Instructions. There are limitations based on home value and your income.

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vebrandAuthor

Thanks for your answer, but I am trying to get past this frustrating software asking for the market value of the apartment that I have no way of knowing. It never asked for it previous years when it was straight up 12 months of rent. Now, that it is seven months rent before I moved into my new home, it wants the value. I plugged some arbitrary numbers in there and my return shot up $900 dollars. I do not want to get audited.

KrisD15

You're talking about the Homestead Property Tax Credit.

When you are a renter, that credit is based on the rent you pay (they figure part of the rent you pay goes towards the property tax of the building in which you rent)

Now that you are a homeowner, the credit is based on your property tax and that is based on the assessed value. Also, the credit is eliminated if your home value is over a certain amount.

Rather than reporting what you paid in rent for the credit, you report what you paid in property tax.

You also report the taxable value in case the value is over the limit for the credit.

The taxable value is listed on your property tax bill.

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