taxable value of apartment

[vebrand]

Moved from apartment to home in Michigan. Trying to claim credit for rent paid. I am being asked for taxable value of property. I know the value of my Condo, not my apartment. I have never been asked this before.

[AmyC]

MI allows 23% of rent paid, usually. See MI-1040CR Instructions. There are limitations based on home value and your income.

[vebrand]

Thanks for your answer, but I am trying to get past this frustrating software asking for the market value of the apartment that I have no way of knowing. It never asked for it previous years when it was straight up 12 months of rent.  Now, that it is seven months rent before I moved into my new home, it wants the value.  I plugged some arbitrary numbers in there and my return shot up $900 dollars.  I do not want to get audited.

[KrisD15]

You're talking about the Homestead Property Tax Credit. 

When you are a renter, that credit is based on the rent you pay (they figure part of the rent you pay goes towards the property tax of the building in which you rent)

Now that you are a homeowner, the credit is based on your property tax and that is based on the assessed value. Also, the credit is eliminated if your home value is over a certain amount. 

Rather than reporting what you paid in rent for the credit, you report what you paid in property tax. 

You also report the taxable value in case the value is over the limit for the credit. 

The taxable value is listed on your property tax bill.

[vebrand]

Thanks for the reply, but somehow I am apparently not making my self clear.  I HAVE SEVEN MONTHS OF RENT I AM TRYING TO CLAIM <<<ALONG>>> with 5 months at my condo.  This software can't seem to differentiate my apartment from my home when it comes to property value.  I have the numbers for my condo, BUT i have NEVER had to enter a property value for my apartment.  I don't want to enter the wrong thing and get audited.  I have an appointment with a local tax preparer to make sure I don't screw this up.

[DawnC]

Did you select both types of housing on the Indicate Housing Type(s) screen?   And answer NO to the Live in the Same Place All Year question?    After that, on the Enter Property Tax Info screen, only enter the condo info, then click Continue.   You will enter the rent portion on the next screen titled Enter Rental Information.