HOMESTEAD EXEMPTION AND/OR TAX DEDUCTIONS

HOMESTEAD EXEMPTION AND/OR TAX DEDUCTIONS

Indianapolis, IN · Member since 2017 · 2 posts · 2 votes

In Indianapolis there is a 1% cap on property tax on your primary residence, they call it a homestead exemption. Is there a way to obtain the homestead exemption even though its not my primary residence? If it is not, will my account be able to file it with my taxes as a deduction. Any help would be appreciated. I already called the County auditor office but did not get a clear answer.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y

    @Eric Mattisz , Only primary residence qualifies for the  Homestead Exemption. 

    If your other property is a rental property, taxes are deducted as expenses against your rental income

    if your other property is a second home and is not rented, the taxes are still deductible  ( at least for this year) as an itemized deduction.  Next year it might be capped based on new tax reform.  

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  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 104 posts · 47 votes
    8y

    @Eric 

    @Eric Mattisz, also be sure to monitor the assessed value every year and challenge it if needed. No need to pay extra if you can justify a lower assessment. 

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