Property Tax Deductions Available

 

The following deductions are available to homeowners to reduce their property taxes.  For these deductions to be applied to real estate, homeowners must file an application before the last business day of the current year to be credited on the following year’s property taxes.  If a landowner has refinanced a mortgage or changed the titling of the property during the past year, the exemptions need to be re-filed.  It is the homeowner’s responsibility to ensure that applications for deduction have been filed.

 If you have questions about any of the deductions, please contact the LaGrange County Auditor’s office at 260-499-6311.  You can file these deductions at the LaGrange County Auditor’s office, 114 W Michigan St, LaGrange, IN.  Office hours are Monday through Friday 8:00 a.m. – 4:00 p.m. 

Circuit Breaker Cap Credit: All property owners are entitled to a cap on any amount of property taxes over the following percentages of the gross assessed value for property taxes payable in 2013: 1 percent for homestead properties, 2 percent for residential, agricultural and long term care properties and 3 percent on non-residential and personal property.

Homestead Standard Deduction: Applicable to a dwelling and up to one acre of immediately surrounding real estate or a mobile home, which serves as the individual’s principal place of residence. Structures attached to the dwelling are considered a part of the homestead. Swimming pools and unattached structures are not considered a part of the homestead. Deduction equals the lesser of $45,000 or 60% of the assessed value of the homestead.

Homestead Supplemental Deduction: An individual or entity entitled to the Standard Deduction will automatically receive the Supplemental Deduction. Deduction equals the sum of 35% of homestead assessed value less than $600,000 and 25% of homestead assessed value more than $600,000.

Mortgage Deduction: Applicable to mortgaged real property or installment financed mobile/manufactured home owned or purchased on contract by an Indiana resident. A person is not entitled to a mortgage deduction unless there is a balance on the mortgage or contract indebtedness (including a home equity line of credit) recorded in the recorder’s office. Deduction equals the lesser of $3,000, one-half the assessed value of the property or the balance of the mortgage or contract indebtedness as of assessment date.

Over 65 Deduction: Applicable to a qualified individual’s property of residence not exceeding $182,430 in assessed valuation. Individual must be at least 65 years of age on December 31, 2012 with a combined adjusted gross income not exceeding $25,000. Maximum deduction amount is $12,480 or one-half the assessed valuation of the property.  Proof of income is required.

Over 65 Circuit Breaker Credit: Applicable to a qualified individual’s homestead property not exceeding $160,000 in assessed valuation. Individual must be at least 65 years of age on December 31, 2012 with an individual adjusted gross income not exceeding $30,000 or a combined adjusted income not exceeding $40,000. Credit prevents homestead tax liability from increasing by more than 2% each year.  Proof of income is required.

Blind/Disabled Deduction: Applicable to a blind or disabled individual’s property of residence. Individual’s taxable gross income may not exceed $17,000. Maximum deduction amount is $12,480. (Cannot be combined with Over 65 Deduction.)  Proof of income is required.

Disabled Veteran Deduction: Applicable to property not exceeding $143,160 in assessed valuation and owned by an individual who received an honorable discharge after serving at least 90 days in the U.S. military or naval forces and who has either a total disability or is at least 62 years old with at least 10% disability, or surviving spouse. Maximum deduction amount is $12,480. (Cannot be combined with Over 65 Deduction.)     Code of disability is required.

Veteran with Service Connected Disability Deduction: Applicable to property owned by an individual who received an honorable discharge after serving in the U.S. military or naval forces during any of its wars and who has a service connected disability of at least 10%, or surviving spouse. Maximum deduction amount is $24,960. (Cannot be combined with Over 65 Deduction and Surviving Spouse of WWI Deduction.)  Code of disability is required.

Veteran of World War I Deduction: Applicable to a qualified individual’s principal place of residence not exceeding $206,500 in assessed valuation. Maximum deduction amount is $18,720 (Cannot be combined with Over 65 Deduction.)

Surviving Spouse of World War I Veteran Deduction: Applicable to property owned by the surviving spouse of an individual who served in the U.S. military or naval forces before November 12, 1918 and received an honorable discharge. Maximum deduction amount is $18,720. (Cannot be combined with Over 65 Deduction and Veteran with Service Connected Disability Deduction.)

Solar Energy Deduction: Applicable to property with a solar energy heating/cooling system. Deduction equals the out-of-pocket expenditures for the system components and installation. (Cannot be combined with Over 65 Deduction.)

Wind Power Device Deduction: Applicable to property with wind power device. Deduction equals assessed value of device. (Cannot be combined with Over 65 Deduction.)

Geothermal or Hydroelectric Deduction: Applicable to property with a geothermal or hydroelectric power device. Deduction equals assessed value of device. (Cannot be combined with Over 65 Deduction.)