Any one here familiar with the Indiana Mortgage Exemption?

Hi all,
I live in Indiana and have found something interesting out. In Indiana you are allowed a mortgage exemption on your property taxes if you have a mortgage.

The exemption is:
The lesser of:
(1) $3,000
(2) amount of mortgage or contract indebtedness on assessment date of that year
(3) on half of the total assessed value

What I found out was that you can only have 1 exemption per entity. This is pretty self explanatory, but what I’m wondering is this:

Is it worth it to create an LLC per rental (I’m getting ready to buy my third) that way I can have a mortgage exemption per property and reduce property taxes.

Is anyone else doing this.


I’m not in IN, but here’s what I would do…

  1. Find out how much that exemption will actually drop your property taxes.
  2. Figure out how much it costs to establish and the annual fee for LLCs in IN.
  3. See if the amount saved in taxes overcomes the fees for the LLC each year (don’t forget extra LLCs = extra tax returns filed).

In the beginning, I thought about having each property in its own LLC. Now that my wife and I own several dozen, I can’t imagine keeping different bank accounts for each one as well as the annual fees, etc.


Thanks for the reply. You hit the nail on the head with my long term concern, i don’t plan on having just 3 and just wanted to get an idea of what folks were doing.

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