U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > Michigan > Grand Rapids metro area
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 06-02-2009, 12:19 PM
 
1 posts, read 1,856 times
Reputation: 10

Advertisements

I recently inheirited a cottage on Lake Michigan and live in another state.

I am appalled at the property taxes. I do not mind paying in taxes to support schools, etc in the area but the infalted amount is quite extraordinary. The property is assessed at 473,000 and the taxes are 21,000.00 a year! I cannot bring enough in rent to cover the taxes. Does anybody have any suggestions? It breaks my heart that I have to sell a property that has been in the family for over 50 years.

I welcome any suggestions!
Reply With Quote Quick reply to this message

 
Old 06-02-2009, 02:37 PM
 
Location: Grand Rapids Metro
8,872 posts, read 17,746,616 times
Reputation: 3833
Quote:
Originally Posted by shellseeker1 View Post
I recently inheirited a cottage on Lake Michigan and live in another state.

I am appalled at the property taxes. I do not mind paying in taxes to support schools, etc in the area but the infalted amount is quite extraordinary. The property is assessed at 473,000 and the taxes are 21,000.00 a year! I cannot bring enough in rent to cover the taxes. Does anybody have any suggestions? It breaks my heart that I have to sell a property that has been in the family for over 50 years.

I welcome any suggestions!
If the property is owned free and clear, can't you draw on the principal somehow (reverse mortgage maybe?) It's kind of late now, but paying the property taxes should have been factored in when the will was set up (as in, an account set up by the estate to help pay the property taxes, if the survivors couldn't afford to pay them but wanted to hold on to the property).
Reply With Quote Quick reply to this message
 
Old 06-02-2009, 03:18 PM
 
24,839 posts, read 33,318,899 times
Reputation: 11473
Quote:
Originally Posted by shellseeker1 View Post
I recently inheirited a cottage on Lake Michigan and live in another state.

I am appalled at the property taxes. I do not mind paying in taxes to support schools, etc in the area but the infalted amount is quite extraordinary. The property is assessed at 473,000 and the taxes are 21,000.00 a year! I cannot bring enough in rent to cover the taxes. Does anybody have any suggestions? It breaks my heart that I have to sell a property that has been in the family for over 50 years.

I welcome any suggestions!
If you are going to rent it, it becomes a business. That makes the taxes a deduction. Talk to a CPA.
Reply With Quote Quick reply to this message
 
Old 06-02-2009, 07:53 PM
 
Location: East Grand Rapids, MI
845 posts, read 3,018,901 times
Reputation: 236
Your state of residence has nothing to do with it.
This is a common issue for all cottages passed down between families.
Found some decent info here: Cottage Law - Saving the Family Cottage by Stuart J. Hollander
Reply With Quote Quick reply to this message
 
Old 06-02-2009, 09:00 PM
 
24,839 posts, read 33,318,899 times
Reputation: 11473
Quote:
Originally Posted by suydam View Post
Your state of residence has nothing to do with it.
This is a common issue for all cottages passed down between families.
Found some decent info here: Cottage Law - Saving the Family Cottage by Stuart J. Hollander
Sure it does. They can't take the homestead exemption.
Reply With Quote Quick reply to this message
 
Old 06-02-2009, 09:02 PM
 
Location: East Grand Rapids, MI
845 posts, read 3,018,901 times
Reputation: 236
Quote:
Originally Posted by Driller1 View Post
Sure it does. They can't take the homestead exemption.
They can't anyway, can they? If they don't live there, they're going to get "found out" either way.
Reply With Quote Quick reply to this message
 
Old 06-03-2009, 06:08 AM
 
Location: Grand Rapids Metro
8,872 posts, read 17,746,616 times
Reputation: 3833
Quote:
Originally Posted by Driller1 View Post
Sure it does. They can't take the homestead exemption.
No, they still could not take a homestead exemption on the cottage if they had another primary residence in Michigan.

I've heard of out-of-staters claiming their cottage as their primary, but I think assessors in these lakefront communities know what to look out for (and may require proof of year-round residence).
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Michigan > Grand Rapids metro area
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top