Good News for Owners of Short-Term Rentals!

The Michigan Court of Appeals held that "where a property otherwise qualifies for the Principal Residence Exception, the fact that a portion of the property is rented out for a portion of the year as an Airbnb or similar use, does not disqualify the property from a 100% PRE." Deforge v Allouez Township, ___ Mich App ___ (2022).

But the court left undecided how many days an owner can rent a property and still claim the exemption: "We acknowledge that there maybe a limit to what portion of the year the property maybe rented out and still be eligible for the PRE....In the absence of a concrete argument regarding the maximum number of days allowed and a specific finding that the number of days in the case exceeds that theoretical maximum, that question remains hypothetical, and we decline to address it." #property#airbnb#tax#homestead