Are You Receiving the Maximum Credit Allowed for Property Taxes Paid on Your Farm?
When it comes to farmers and the Michigan Homestead Property Tax Credit, taxes paid on property other than your principle residence may also be eligible for the credit. Depending on your total gross receipts from farming activities and other sources of income you may have in a given year, all or a portion of the property taxes you pay on agricultural property may be claimed for the credit in addition to the taxes paid on your residence.
Unsure if you are eligible to claim the Michigan Homestead Property Tax Credit? You may claim the credit if all of the following apply:
- Your homestead is located in Michigan
- You were a Michigan resident for at least six months out of the most recent calendar year
- You pay property taxes or rent on your homestead
- You were contracted to pay rent or own the home on which property taxes were levied
When claiming the Michigan Homestead Property Tax Credit, be sure to include any amounts received in the prior year from the Farmland Preservation Tax Credit in your total household income. On the contrary, do not include any amounts received in the prior year from the Michigan Homestead Property Tax Credit.
To learn more about the Michigan Homestead Property Tax Credit and the types of property taxes that can be claimed for credit see, General Information – Homestead Property Tax Credit (MI-1040CR) provided by Michigan.gov.
Contact the professionals of Yeo & Yeo’s Agribusiness Services Group for more information about farm tax credits and tax strategies.