When selling real estate in Michigan, captital gain is a required tax to be paid during a closing. I'm not an expert on the subject, but I can tell you that in over 95% of all real estate sales, capital gain does not come into play. Primarily investors need to consider this tax ramification when turning over properties within a few years of the purchase. Longtime Michigan homeowners needn't worry. The State of Michigan expects your property to increase in value over the years you live in the home. They are not going to penalize you for your good fortune which you have no control over.

Here is good source to preview when you are uncertain whether or not capital gain will come into play during your northern Michigan real estate transaction. If you are an investor, it is always in your best interest to at least own the property for 1 year prior to sale. Of course the best case situation is that you reside at that Michigan property for 2 years which will most likely null and void your capital gain tax requirement. Keep in mind, whether you own Traverse City Real Estate, Petoskey Michigan real estate or even Gaylord real estate, this tax is state wide. If you need another source to answer Northern Michigan real estate property questions, just contact us.