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Screen MIPropTx - Michigan Homestead Property Tax Credit (1040)
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Overview
Use this screen to complete Form MI-1040CR or MI-1040CR-2.
Forms MI-1040CR and CR-2: General Information
Taxable value
If the amount entered is less than or equal to the allowed limitation for the year, then Form MI-1040-CR calculates. If the property also qualifies for the Farmland Preservation Tax Credit, enter the appropriate property taxes and information from the Farmland Development Rights Agreement(s) in the
Taxes and allocation agreement
statement dialog on MIRefCr Screen.If the entire homestead qualifies for the Farmland Preservation Tax Credit according to the Farmland Development Rights Agreement filed with the State of Michigan and the taxable value exceeds the limitation, then do not use this field so the household income calculates and prints on Form MI-1040-CR-5, line 8. Enter property taxes and other information from the Farmland Development Rights Agreement(s) used to calculate Form MI-1040-CR-5 on MIRefCr Screen in the
Taxes and allocation agreement
statement dialog.If only a portion of the homestead qualifies for the Farmland Preservation Tax Credit according to the Farmland Development Rights Agreement filed with the State of Michigan, but not the home, and the taxable value exceeds the limitation then enter
X
in the unoccupied farmland classified as agricultural by assessor field below. This prints X on Form MI-1040-CR, line 8 and allows the form to disregard the limit. Enter the appropriate property taxes and other information from the Farmland Development Rights Agreement(s) used to calculate Form MI-1040-CR-5 on MIRefCr Screen in the Taxes and allocation agreement
statement dialog.Property taxes (Force)
Principal residence property taxes transfer automatically from federal A Screen to Form MI-1040CR, line 7 or Form MI-1040CR-2, line 9. In the
Real estate
statement dialog in federal A Screen, enter code 1
to indicate property tax paid for the principal residence. UltraTax CS also includes any principal residence property tax amounts that originate on federal Form 8829 and transfer to federal Schedule A. Amounts from federal Rent and F-2 Screens entered in the Taxes
statement dialog with state use code of 1
to indicate principal residence for property tax credit, also automatically transfer to Form MI-1040CR or MI-1040CR-2. An entry here overrides the transferred amount.Unoccupied farmland classified as agricultural by assessor
Use this field if the Farmland Development Rights Agreement indicates that a parcel of the homestead qualifies for the Farmland Preservation Tax Credit and the taxable value entered above exceeds $135,000 and the home is not part of the agreement. Form MI-1040-CR property tax credit calculated is included on Form MI-1040-CR-5.
Business portion of homestead property taxes levied
The business portion of homestead property taxes levied automatically calculates when an amount is entered in the Homestead property taxes levied field. Enter an amount in the
Force
field to use a different amount than the calculated amount.Special Assessments
The amount entered here subtracts from the amount entered in federal A Screen, Real estate taxes for the primary residence, and the result is used to calculate Forms MI-1040CR and MI-1040CR-2.
Business portion of special assessments
The business portion of special assessments automatically calculates when an amount is entered in the
Special assessments
field. Enter an amount in the Force
field to use a different amount than the calculated amount.Form MI-1040CR-2: Status checkboxes for line 7
To calculate Form MI-1040CR-2, enter a taxpayer status code that corresponds to the checkboxes on line 7 of Form MI-1040CR-2. (See table that follows.) Form MI-1040CR-2 calculates only when an entry is made here. Whenever Form MI-1040CR-2 is calculated, UltraTax CS automatically calculates Form MI-1040CR as well. UltraTax CS compares the credit amounts and uses the greater of the two on Form MI-1040, Page 2.
Code |
Description |
|---|---|
1 |
a - Blind and own your homestead |
2 |
b - Veteran with service-connected disability/surviving spouse |
3 |
c - Surviving spouse of veteran deceased in service |
4 |
d - Active military, pensioned veteran or surviving spouse |
5 |
e - Surviving spouse of non-disabled/non-pensioned veteran |
Use 10% of rent paid on Form MI-1040CR-2 for service fee housing; otherwise default is 20% of rent paid
UltraTax CS uses 10 percent of the rent paid on Form MI-1040CR-2, lines 44 and 49 when this field is marked. Enter the amount of rent paid in the
Rental information
field.Home Sale
Use this section to complete the taxpayer's homeowner's information for Part 3, Page 3 of Forms MI-1040CR and MI-1040CR-2.
Number of days occupied / Property taxes levied
UltraTax CS prorates taxes entered in the
Property taxes levied
fields of this section by the days entered in the Number of days occupied
fields.Renter Information and Alternate Housing Facilities
Use this section to complete the taxpayer's renter's information for Part 4, Page 3 of Forms MI-1040CR and MI-1040CR-2.
Rental information
Information entered in the statement dialog attached to this field transfers to Page 2 of Forms MI-1040CR and MI-1040CR-2. In the statement dialog, enter the rental address in the
Rental Address
, City
, and Zip Code
columns, and enter the landowner's name and address in the next two columns. One or two address entries print on the form; three or more print as a statement attached to the return. Selected fields within this statement dialog are described as follows:- Mobile Home:EnterXto indicate rental of a mobile home. Three dollars for each month of rental is added to the amount ofProperty Taxes leviedfield and subtracted from the total reported for rent paid.
- Shr Ind:Indicate the number of persons splitting the total rent paid. The total amount of monthly rent paid times the number of months paid is divided by this number and reported for rent paid.
Property tax millage for Form MI-1040CR-2
Enter the property tax millage to be used on Form MI-1040CR-2, line 45. Enter mills as a whole number; UltraTax CS multiplies by 0.001 and enters the result on line 48.