Instructions For Form Mi-1040cr - Homestead Property Tax Credit

• If gross receipts from farming are less than your total

If You Moved in 2013

household resources and you have lived in your home less

Residents who temporarily lived outside Michigan may

than ten years, you may claim the taxes on your home and

qualify for a credit if Michigan remained their state of

five acres of farmland adjacent and contiguous to your

domicile. Personal belongings and furnishings must have

home.

remained in the Michigan homestead and the homestead

must not have been rented or sublet during the temporary

You may not claim rent paid for vacant farmland when

absence. (See the definitions of resident on page 6 and

computing your property tax credit claim. Farmland owned

domicile on page 23.)

by a Limited Liability Company (LLC) may not be claimed

for a homestead property tax credit by one of the individual

If you bought or sold your home or moved during

members.

2013, you must prorate your taxes. Complete MI-1040CR,

Include any farmland preservation tax credit in your total

Part 3, to determine the taxes that can be claimed for

household resources. Enter the amount of credit you received

credit. Use only the taxes levied in 2013 on each Michigan

in 2013 on line 20 or include it in net farm income on line 16.

homestead, then prorate taxes based on days of occupancy.

Do not include taxes on out-of-state property. Do not include

Homestead property tax credits are not included in total

property taxes for property with a taxable value greater

household resources. If you included this amount in your

than $135,000. Excluded from this restriction is unoccupied

taxable farm income, subtract it from total household

farmland classified as agricultural by your assessor.

resources.

Rent That Can Be Claimed for Credit

Part-Year Residents

You must be under a lease or rental contract to claim rent for

If you lived in Michigan at least six months during the year,

credit. In most cases, 20 percent of rent paid is considered

you may be entitled to a partial credit. If you are a part-year

property tax that can be claimed for credit. The following

resident, you must include all income received as a Michigan

are exceptions:

resident in total household resources (line 33). Complete

• If you rent or lease housing that is subject to a service

MI-1040CR, Part 3, to determine the taxes eligible to be

charge or fees paid instead of property taxes, you may

claimed for credit on your Michigan homestead.

claim a credit based upon 10 percent of the gross rent paid.

Deceased Claimant’s Credit

Use the amount the landlord gives you and enter rent paid

The estate of a taxpayer who died in 2013 (or 2014 before

on line 55 and 10 percent of rent paid on line 56, and follow

filing a claim) may be entitled to a credit for 2013. The

instructions.

• If your housing is exempt from property tax and no

surviving spouse, other authorized claimant, or personal

service fee is paid, you are not eligible for a credit. This

representative can claim this credit. Use the decedent’s Social

includes university- or college-owned housing.

Security number and the personal representative’s address. If

• If your housing costs are subsidized, base your claim on

the taxpayer died after December 31, 2012, enter the date of

the amount you pay. Do not include the federal subsidy

death in the “Deceased Taxpayer” box on page 3.

amount.

The surviving spouse is considered married for the year in

• If you are a mobile home park resident, claim the $3 per

which the deceased spouse died and may file a joint credit

month specific tax on line 10, and the balance of rent paid

for that year. Enter both names and Social Security numbers

on line 11.

on the form, and write “DECD” after the decedent’s name.

• If you are a cooperative housing corporation resident

Sign the return and write “filing as surviving spouse” in

member, claim your share of the property taxes on the

the deceased’s signature line. Enter the date of death in the

building. If you live in a cooperative where residents pay

“Deceased Taxpayer” box on the bottom of page 3. Include

rent on the land under the building, you may also claim 20

the decedent’s income in total household resources.

percent of that land rent. NOTE: Do not take 20 percent

If filing as a personal representative or claimant for the

of your total monthly payment.

• When you pay room and board in one fee, you must

refund of a single deceased taxpayer, you must attach U.S.

Form 1310 or Michigan Claim for Refund Due a Deceased

determine your portion of the tax that can be claimed for

Taxpayer (MI-1310). Enter the decedent’s name in the Filer’s

credit based on square footage.

Name line and the representative’s or claimant’s name, title

Example: You pay $750 a month for room and board.

and address in the Home Address line. See the “Deceased

You occupy 600 square feet of a 62,000 square foot

Taxpayer Chart of Examples” on page 59. A claimant must

apartment building. The landlord pays $54,000 in taxes

prorate to the date of death as noted in the following paragraph.

per year. If you pay room and board in separate

The personal representative or claimant claiming a credit

billings, you must base your property tax credit on rent.

for a single deceased person or on a jointly filed credit if

Step 1: 600/62,000 = 0.0097

both filers became deceased during the 2013 tax year, must

Step 2: $54,000 x 0.0097 = $524 taxes you can claim for

prorate taxes to the date of death. Complete lines 47 through

credit

51 to prorate the property taxes. Annualize total household

resources. (See the instructions on page 26.) Attach a copy

Home used for business. If you use part of your apartment

of the tax bills or lease agreements. If filing as a personal

or rented home for business, you may claim the rent on the

representative or claimant of deceased taxpayers for a

living area of your homestead, but not the rent on the portion

jointly filed return, you must attach a U.S. Form 1310 or

used for business.

Instructions For Form Mi-1040cr - Homestead Property Tax Credit - 2013 Page 3

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