This is a final reminder that if you purchased a property in Indiana in 2008, there are only four days left (until December 30th, since most county offices will be closed on the 24th, 26th and the 31st) to file for your Homestead and other credits with your County Auditor. If you are living in the property as your principle residence, you are entitled to a Homestead credit.
Run - don't walk to the Auditor's office.
This credit will save you hundreds and possibly several thousands of dollars on next year's real estate taxes. At this late date do this in person. Don't trust the mail.
If you already filed for your credits, find your receipt and keep it in a safe place. In the event of a mix-up, the burden of proof will be on you to prove that you filed. Don't expect the County to cut you any slack. They won't.
A couple of weeks ago we mailed Homestead Tax Credit reminders to each of our purchasers during the past year, about 800 in total. We received more than one-dozen calls from folks who had forgotten to file or not realized that they should file. All were quite appreciative that we took the time to remind them. I confess though, my primary motivation in doing the mailing is to avoid unpleasant phone calls after the tax bills come out next spring.
Our Closers explain this in every closing. There are usually two or three forms signed wherein the Buyer acknowledges that we've told them. Yet, human nature being what it is, people don't hear us or don't follow through.
When the tax bill comes, it's too late.
So don't wait any longer. Missing out on this will cost you plenty in extra real estate taxes.
Indiana Real Estate or Mortgage professionals please feel free to republish this post for your clients.
Here's my question for you...because you will probably know. I have Buyer A who is also Seller A. Buyer A has bought Seller B's home. They closed on 10/10/08; but are not getting possession until 1/31/09. Seller B just closed on a house with no exemptions. I am telling Buyer A that he needs to move his exemptions on his house that is listed and not yet sold and move them to the property they just bought since Seller B has moved them from that house to the new house (clear as mud?). The assessor told me no....that all the properties have exemptions. How can they be. There are three properties and two human families in this scenario??? I'm right, right?
Cindy: The hierarchy of rules complexity, easiest to hardest: Go Fish card game -> Baseball -> Electoral College -> any section of the IRS Tax Code -> A Love Triangle -> Indiana Property Tax Exemption Rules.
I think the Assessor is correct.
Here is my understanding. The assessment date is still March 1st for the taxes payable in the following year. (i.e. The status of the property March 1, 2008 controls how the taxes payable in 2009 are assessed and calculated.) An exception passed by the legislature last spring allows the purchasers of property to apply for exemptions any time during the year. So the homestead credit is now like exemptions for dependants on your income taxes, you just need to be the owner (or have a dependant) for only one day to qualify for the entire credit. You also need to file with the Auditor by December 31st.
So if there are exemptions already on the property March 1, 2008, the taxes payable in 2009 should reflect that. Filing before the end of the year is only important if the property currently doesn't have exemptions. I beleive that the Assessment date controls on the property Seller B sold and the December 31st date controls on the property Seller B bought.
Technically Buyer A cannot claim the exemption until they occupy the property. I know that isn't the way it's been practiced all the time, but that is the law. And doing so this year might remove the exemption from their current property for the taxes payable in 2009, but I'm not positive.
Although I don't have actual experience, Love Triangles must be easier.
Cindy, one other thought. I think that Buyers in 2008 do need to file before March 1, 2009 to receive the credits in 2010.
John
Thank you so much! You have provided the explanation that I have needed with a touch of humor too! You're the best.
Merry Christmas.