Post Content

The Department of Revenue has just advised taxpayers, in Directive 10-7, that a taxpayer occupying his or her principal residence under the terms of a life estate (which requires the life tenant to pay real estate taxes) and is otherwise eligible may claim the Senior Circuit Breaker Tax Credit.

In the most common life estate situation, a remainder interest in the home is transferred to a third party, often a child, with the grantor(s) retaining a life interest either individually or jointly. The life tenant generally retains the exclusive right to use the property during his or her lifetime, but that right expires automatically upon the death of the last life tenant(s).

Generally, the life tenant is responsible for real estate taxes, insurance, and ordinary maintenance costs and upkeep of the property.

Thus, DOR wants to make it abundantly clear that senior taxpayers who are life tenants are most certainly eligible for the Senior Circuit Breaker Tax Credit.


Written By:

Recent Posts

It’s All About Plain Talk posted on Aug 13

Commissioner Amy Pitter wants to be sure that the information going out of DOR to taxpayers is clear and concise. If you received a bill, form or notice from the Department of Revenue and are having trouble understanding what actions you need to take, tell   …Continue Reading It’s All About Plain Talk

Take a survey — Your feedback impacts how DOR does business posted on Aug 4

The Department of Revenue wants to hear from taxpayers and anyone who is advocating for taxpayers! DOR has just unveiled its new “How Are We Doing?” survey page, and we’d like you to report in on your customer service experience. This page was created to   …Continue Reading Take a survey — Your feedback impacts how DOR does business

DOR + Social Media — #CheckUsOut posted on Jul 28

DOR + Social Media — #CheckUsOut

  State tax administration might not deliver such seismic news events as LeBron’s eagerly-awaited announcement of his return to his old Cleveland team, but knowing what’s going on at any given moment in the tax world could save you some time and effort, and maybe   …Continue Reading DOR + Social Media — #CheckUsOut