Eligibility Of Owner

• The person fling for the homestead exemption must be either the legal owner of the home or under contract to purchase the home. The key requirement is that the home in question is the legal primary residence of the owner. The law defines this as the dwelling the owner returns to regularly after all periods of absence. As long as the owner meets this requirement of primary residence and does not have any other homestead exemption in the state, he is eligible even if he owns other property in Indiana.
  
  

Eligibility Of Home

• An eligible home must be a residential property used as the owner's primary residence. This includes the dwelling structure, any garage and the land attached to the dwelling up to one acre in size. Any part of the property that is income-producing, such as a rented out apartment or an operating store, cannot be counted as part of the homestead property. A owned cooperative apartment or mobile home are also eligible as a dwelling. Owned land under the mobile home is also eligible.
  
  

Status Of Homestead

• The homestead exemption is set for each year based on the status of the home on the annual property tax assessment date of March 1. The exemption will remain for the whole year as long as the owner does not establish another homestead. For example, if the owner is residing in the home on March 1 and then rents out the home on June 1, the exemption will stay in place until the end of the year provided he does not file for another homestead exemption in that period.
  
  

Notification Of Change

• State law requires the owner with a homestead exemption to notify the government of any change of use of the property that affects the exemption -- for example, renting out all or part of the property or opening a business establishment on the property. Such notice must be filed with the county government where the property is located within 60 days of the change. Failure to make this notification makes the owner liable to lose his exemption and owe penalties.