Indiana Homeowner's Residential Property Tax Deduction

Article ID: 33515  

Question
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 cannot claim this deduction for property tax paid in 2014 if you are claiming the Lake County residential income tax credit on Schedule 5, line 6.


How do I claim my deduction? Complete the information area on Schedule 2, line 2. Enter the address of your principal residence where the Indiana property tax was paid if it is different from the address on the front of the return. If you had more than one principal residence during the year, and you paid Indiana property tax on both residences, list the additional residence on a separate piece of paper.

Example. Sue and Mack each owned their own home; they married in 2014. They sold both of their homes during the year and began renting. They are eligible to claim a property tax deduction on the
combined property taxes paid on both homes if they are filing a joint return (limited to $2,500 altogether).


• Enter the number of months you lived there. If you claim more than one residence, enter the number of months lived at the other residence(s) on a separate sheet of paper.
• Enter the amount of Indiana property tax paid. If you lived in more than one residence during the year, enter the combined amount of Indiana property tax paid on all principal residences.
• Enter the smaller of $2,500 or the amount of Indiana property tax
paid.


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 do not deduct that amount on this line. Example. Jean paid $1,200 in Indiana property tax on her home. She used one room of her home for her business, and deducted $200 Indiana property tax as an expense on her federal Schedule C. Jean is allowed a deduction of $1,000 ($1,200 minus the $200 deduction already taken on federal Schedule C).

 


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Views: 752 Created on: Jun 15, 2013