Greg McClelland, our Michigan Associaton of Realtors Legal Councel has ruled on the $8000.00 tax credit being able to be used for tax credit.
The Federal IRS rule was silent on the subject. Many folks in Michigan have either called or emailed me on IF the tax incentive could be used IF you purchase a home on a land contract.
According to the IRS code, Purchase means any acquisition. The word acquisition is not further defined in the IRS code. Therefore it is determined by state law, ie...Michigan law.
Under Michigan law is is undisputed that a contract vendee obtains equitable title to that property title under Michigan law. It also is clear that equitable title is substantially equivalent to legal title.
The court cases sites are:
- Baker v Klinger, 302 Mich 282, 288 (1942)
- Zurcher v Herveat, 238 Mich App, 267,291 (1999)
- Godsmith v Albion Public Schools, 373 Mich 397,402 (1964)
- Cardinal v United States 26 F3d, 48,49 ( 6th Cir 1994)
- Singer v American StatesIns, 245 Mich App, 370,378 (2001)
If you want me to email you the entire ruling, send me an email at Missy at MissyCaulk.com
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Missy Caulk & Team can be reached at 734-216-2822 or email: Missy@MissyCaulk.com
Our TEAM of 6 buyer associates are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.
Thinking of selling your home?
Search the Ann Arbor Area MLS.
Missy Caulk & Team can be reached at 734-926-9797 or email: Missy@MissyCaulk.com
Our TEAM of 6 Agents are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.
- Search the Ann Arbor Area MLS.
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