Under the Michigan Real Estate Transfer Tax Act, which of the following transactions would NOT qualify for an exemption from the state real estate transfer tax?
Correct Answer
D) An arm's-length sale of a single-family home between two unrelated parties for $350,000
An arm's-length sale between unrelated parties for full market value consideration is a fully taxable transfer under MCL 207.505. It does not meet any of the statutory exemptions. The transfer tax of $7.50 per $1,000 (state) plus $1.10 per $1,000 (county) would apply to the $350,000 sale price.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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