If you are a builder of a single family residence, single family townhouse, or a single family condominium and hold these properties for sale in the ordinary course of your trade or business, you may be eligible for the Residence in Inventory Deduction per IC 6-1.1-12.8. This deduction may be claimed on the assessed value of a qualifying structure beginning with the assessment date of March 1, 2012, and later years. An application must be filed for each assessment date for which the property owner wishes to receive the deduction. A property owner may not receive this deduction for more than three residences in inventory in Indiana for a particular assessment date.
Residence in Inventory is real property that is not a model residence as defined in IC 6-1.1-12.6-1; and consists of a single family residence, single family townhouse, or a single family condominium unit which has never been occupied. This does not include the land on which the residence, townhouse, or condominium is located.
Eligible applicants are entitled to a deduction from the assessed value of the structure(s) in the amount of 50% of the assessed value of the residence in inventory for:
- Not more than one (1) assessment date for which the residence in inventory is assessed as a partially completed structure.
- The assessment date for which the residence in inventory is first assessed as a fully completed structure; and
- The two (2) assessment dates that immediately follow the first assessment date.