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Indiana Homeowner's Residential Property Tax Deduction

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Indiana Homeowner's Residential Property Tax Deduction

Answer
You may be able to take a deduction of up to $2,500 of the Indiana property taxes (residential real estate taxes) paid on your principal place of residence. Your principal place of residence is the place where you have your true, fixed home and where you intend to return after being absent.
Note: Property tax paid for summer homes or vacation homes is not deductible.
Important: You must maintain copies of proof that you paid your Indiana property tax as the Department can require you to provide this information. This could include the Form 1098, the property tax statement from your local assessor's office, cancelled checks, etc.

No double benefit allowed. If any portion of property taxes paid on your principal residence was deducted as an expense on federal Schedule C, C-EZ, E or F, then that amount cannot also be deducted. See the following example.

Example: Jean used one room of her home for her business. She deducted $200 Indiana property tax as an expense on her federal Schedule C. She paid a total of $1,200 Indiana property tax on her home. Jean's deduction will be $1,000 ($1,200 minus the $200 deduction on federal Schedule C).


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Views: 423 Created on: Jun 15, 2013
Date updated: Nov 19, 2014

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