Mich. Admin. Code R 206.29 — Homestead property tax credit; separation or divorce of

claimants.
Rule 29. (1) For the period prior to separation or divorce, the taxes or rent paid shall
be prorated on the basis of each spouse's in come to total income for the period.
However, if 1 spouse's income does not eq ual 1/2 the taxes or tax in rent for the
period, the other spouse may claim all of the taxes or tax in rent for that period. In the
example in subrule (5) Al ice is not entitled to claim part of the property taxes
during the period they lived together because for that period she did not have income
equal to 1/2 of the taxes.
(2) During the period of separation or divorce, the occupant of the homestead is
entitled to the credit.
(3) If 1 of the parties to a separation or divorce is requi red to continue the
house payments and taxes or the rent on the dw elling occupied by the other, the occupant
shall include these payments in his or her household income.
(4) Household income is that income received during the period the claimant is
entitled to claim property taxes or tax in rent.
(5) Example 1. Bob and Alice Jones separated June 1 and were divorced
November 3. They owned a home on which the taxes for the year were $900.00.
Alice continued to occupy the home and received title to the property upon their
divorce. Bob moved into an apartment June 1 and paid $225.00 per month rent for the
balance of the year. Bob's income fo r the year was $15,000.00 and, at the time they
separated, he was ordered to pay Alic e $200.00 per month plus the payments on the
house ($240.00 per month, including taxes a nd insurance). The divorce decree called
for alimony to Alice of $200.00 per m onth. Alice earned $30.00 per month on a
part-time job through July but quit to go to work full time on August 1 for a salary of
$500.00 per month. Their homestead property tax credits are computed as follows:

Figure for 206.29