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If you sold a home and moved into a new home, the property taxes for each home must be prorated. 

To do this, you will need the following information to calculate your homestead property tax credit:

• number of days you owned and occupied each home as your principal residence, and
• property taxes levied on both homes, in the year of the claim. 

Complete part 3 of the MI-1040CR to determine the taxes that can be claimed for the homestead property tax credit. Use the taxes levied for the year of the claim. The number of days used to prorate your credit may not exceed 365, except in a leap year. Homesteads with taxable values above a certain amount are not eligible. 

If you sold a home, you must also include any capital gain from the sale of that home in total household resources, even if the capital gain is not included in adjusted gross income.

If you sold a home and moved into a new home, the property taxes for each home must be prorated. 

To do this, you will need the following information to calculate your homestead property tax credit:

• number of days you owned and occupied each home as your principal residence, and
• property taxes levied on both homes, in the year of the claim. 

Complete part 3 of the MI-1040CR to determine the taxes that can be claimed for the homestead property tax credit. Use the taxes levied for the year of the claim. The number of days used to prorate your credit may not exceed 365, except in a leap year. Homesteads with taxable values above a certain amount are not eligible. 

If you built a home, the taxes levied on the home are based only on the value of the land in the year the home was completed. The taxes levied the following calendar year will be based on the taxable value of the land plus the home.

You will need to calculate prorated amount of property taxes and rent paid if you now rent your home.

Prorated Property Taxes

To calculate the prorated amount of property taxes you, will need to determine the following:

• the days of occupancy in the owned home, and
• the total property taxes billed in the year you are filing.

For example:

• You moved February 25th.
• You occupied your home for 56 days.

Calculate prorated amount of property taxes paid: 

1. Divide the days of occupancy in the home by days in the year

56 × 365 (or 366 if it is a leap year) = 0.15

 2. Multiply the result of step one by total taxes billed (does not have to be taxes paid). 

0.15 × total taxes = line 50, column b of the MI-1040CR or line 44, column b of the MI-1040CR-2

Rent Paid

To calculate the rent paid, you will need to determine the following:

• the months of occupancy in the rented home, and
• the monthly rent paid.

Calculate rent paid by:

1. Multiply the number of months of occupancy by the monthly rent paid.
2. If any month of occupancy was not for the complete month:
3. Divide the number of days occupied by the number of days in that month.
4. Multiply the result by the monthly rent amount.

Use the calculations to complete part 3, column b of the MI-1040-CR or part 1 column b of the MI-1040-CR2.