Discuss Detroit Archives - Beginning January 2007 Historic tax credit for renovation Previous Next
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Rhymeswithrawk
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Username: Rhymeswithrawk

Post Number: 754
Registered: 11-2005
Posted on Tuesday, May 29, 2007 - 9:29 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Anyone gone through this process? It looks arduous, but it'd mean about $7K come tax time.
www.michigan.gov/hpcredit
First thing that tells you it'll be a long ride: I have to get in touch with someone in the city offices and have them fill out a form.
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E_hemingway
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Username: E_hemingway

Post Number: 1201
Registered: 11-2004
Posted on Wednesday, May 30, 2007 - 9:57 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

bump
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6nois
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Username: 6nois

Post Number: 285
Registered: 11-2006
Posted on Wednesday, May 30, 2007 - 10:30 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I have some friends in Saginaw who have done it. Its alot of work but its really worth it.
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Rsa
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Username: Rsa

Post Number: 1134
Registered: 10-2003
Posted on Wednesday, May 30, 2007 - 10:48 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

rhymes; the firm i work with have done that process for and have worked with owners who have completed the tax credit process. while it is possible to handle it by yourself, it is a very lengthy and drawn out process that if not completed correctly will forfeit credits. if you have any interest in talking to, or even hiring someone who can help you out, feel free to contact me: rockstarchitect@aol.com and i will forward my business information to you.

just keep in mind that you do not receive your 15%-25% of renovation costs until the state of michigan approves the completed renovations. it's meant more of a reimbursement than subsidy. however, you can use the tax credits as collateral for a home improvement loan. also keep in mind that the renovations have to be at least 1/2 the value of the property to qualify.
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Ndavies
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Username: Ndavies

Post Number: 2626
Registered: 10-2003
Posted on Wednesday, May 30, 2007 - 11:02 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

also keep in mind that the renovations have to be at least 1/2 the value of the property to qualify.


RSA that is incorrect. To use the state credit, The value of the renovation only needs to be 10% of the SEV. The SEV is usually 50% of the properties real value. So 5% of the properties value.

from http://www.michigan.gov/docume nts/hal_mhc_shpo_taxincen_5215 4_7.pdf

quote:


5. Qualified rehabilitation expenditures must be
equal to or greater than 10 percent of the State
Equalized Value (SEV) of the property.

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Rsa
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Username: Rsa

Post Number: 1135
Registered: 10-2003
Posted on Wednesday, May 30, 2007 - 11:10 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

drat; i knew i was mixing up my percentages on the value. thanx for the correction ndavies.
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Bvos
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Username: Bvos

Post Number: 2185
Registered: 10-2003
Posted on Wednesday, May 30, 2007 - 12:15 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

If you are going to do this (which is a very good program if you plan some significant renovations) I'd check with the state before jumping in headfirst into an application. These tax credits were frozen as part of the overall freeze on grants and tax credits the governor did a month or two ago. They may have released the hold on this, but be sure to check first.

The state historic tax credits are also rumored to be on the chopping block for next year's budget discussion (budget year starts Oct. 1 2008). So if they are taking applications, now is the time to go for them before they potentially disappear.

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