Michigan Administrative Code
Department - Treasury
Customer Service Bureau
Income Tax
Section R. 206.29 - Homestead property tax credit; separation or divorce of claimants

(1) For the period prior to separation or divorce, the taxes or rent paid shall be prorated on the basis of each spouse's income to total income for the period.

However, if 1 spouse's income does not equal 1/2 the taxes or tax in rent for the period, the other spouse may claim all of the taxes or tax in rent for that period. In the example in subrule (5) Alice is not entitled to claim part of the property taxes during the period they lived together because for that period she did not have income equal to 1/2 of the taxes.

(2) During the period of separation or divorce, the occupant of the homestead is entitled to the credit.

(3) If 1 of the parties to a separation or divorce is required to continue the house payments and taxes or the rent on the dwelling occupied by the other, the occupant shall include these payments in his or her household income.

(4) Household income is that income received during the period the claimant is entitled to claim property taxes or tax in rent.

(5) Example 1. Bob and Alice Jones separated June 1 and were divorced November 3. They owned a home on which the taxes for the year were $900.00. Alice continued to occupy the home and received title to the property upon their divorce. Bob moved into an apartment June 1 and paid $225.00 per month rent for the balance of the year. Bob's income for the year was $15,000.00 and, at the time they separated, he was ordered to pay Alice $200.00 per month plus the payments on the house ($240.00 per month, including taxes and insurance). The divorce decree called for alimony to Alice of $200.00 per month. Alice earned $30.00 per month on a part-time job through July but quit to go to work full time on August 1 for a salary of $500.00 per month. Their homestead property tax credits are computed as follows:

Figure for 206.29

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