Use Caution When Transferring Property to a Related Entity

Property taxes are a burden that every property owner bears.  A cap on the taxable value of the property helps ease that burden when property values rise quickly.  Many owners of rental properties desire to transfer ownership of the property to an LLC in order to reduce liability exposure. However, a recent Michigan Court of Appeals opinion highlights how important it is to minimize the possibility that a transfer of ownership could result in an “uncapping” of the taxable value and a dramatic increase in property taxes.  Click here to learn more.