How to combine 2 adjoining properties for tax purposes?

I own a 2 acre piece of property with a home on it. I have a mortgage on this property. My mother passed away and left me her older house on 20 acres adjoining my property with no mortgage on the property. I am getting hammered with taxes because it’s considered a second home. Is there a way to combine the 2 adjoining properties if no one is living in the older home. And how does a morgage on my property effect the situation if they can be combined?

Asked on September 18, 2012 under Real Estate Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The way to combine to separate parcels into one is to make an application with the zoning department in the community where you reside. However, from a practical point of view to do so will reduce the value of the two parcels in that one is worth less than two parcels.

I suggest that you consult with a real estate attorney about the matter in that the tax benefits for rezoning the two parcels into one would most likely be well less than the loss in value of the parcels. The mortgage on the property could be at risk.

I suggest simply renting out the home on the other parcel to generate income to pay the property taxes.


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