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Michigan Homestead credit

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daletoo

Junior Member
What is the name of your state? Michigan

When 2 unreated, single people jointly own a house, what are the guidelines for splitting up the mortgage interest and property taxes? My understanding was that you could split it however you wanted, so long as you didn't exceed that total amounts reported. But, can they do different things for different "parts". For example. Can they split the federal itemized deductions of mortgage interest and property taxes paid 50/50, but have one person claim ALL the Michigan Homestead credit, with the other person claiming none of it? Or, if they split the federal deductions 50/50, do they have to split the Michigan Homestead the same way?
 


LdiJ

Senior Member
What is the name of your state? Michigan

When 2 unreated, single people jointly own a house, what are the guidelines for splitting up the mortgage interest and property taxes? My understanding was that you could split it however you wanted, so long as you didn't exceed that total amounts reported. But, can they do different things for different "parts". For example. Can they split the federal itemized deductions of mortgage interest and property taxes paid 50/50, but have one person claim ALL the Michigan Homestead credit, with the other person claiming none of it? Or, if they split the federal deductions 50/50, do they have to split the Michigan Homestead the same way?
The federal rule for deducting mortgage interest and property taxes is that the person making the deduction must be legally liable for the mortgage and property taxes, and must have also PAID the amounts being deducted. Therefore, on a federal level if they are spliting the costs 50/50, then they should also be spliting the deductions.

You need to consult a Michigan tax professional in order to get answers regarding MI taxes. I don't think that we have any MI tax professionals participating here...but I could be wrong.
 

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