Discussion:Mobile Homes
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Discussion Forum Index --> Tax Questions --> Mobile Homes
| 4 December 2005 | |
| Client bought a mobile home in an owner owned park. He intends renting the mobile home for the winter season (will be empty the rest of the year), will manage the property himself. Question is what depreciation table is used for a mobile home? The land value is about 45,000 and the mobile home itself is valued at 50,000. Does this go under the 27 year depreciation even though the life expectancy of the mobile home is only 10-15 years? | |
Hubert Altman (talk|edits) said: | 5 December 2005 |
| I would take the life expectancy straight line. | |
| 23 September 2008 | |
| I was looking at this again today, as I have used a shorter life expectancy before. TheTaxBook has a depreciation table that says under 27.5 year property that it includes mobile homes, so I presume that they saw this specified in some guidance, but I am not certain where it would be. If anyone has references to authority that a shorter life expectancy can be used instead of this, I would appreciate it. It seems like it might make a difference if treated as realty under local law, like if a permanent foundation is in place. Colorado treats mobile homes as personal property, so it seems like that would be a factor in favor of using a shorter useful life. If anyone has further information it would be appreciated. | |
| 24 September 2008 | |
| Residential rental property is 27.5 year property, regardless of whether it is real property or personal property. See Sec. 168(c). | |
| 24 September 2008 | |
| Reg. 1.48-1(c)
The characterization of property as personal under local law does not control its characterization as personal property for depreciation purposes | |
| 24 September 2008 | |
| Yes, but a mobile home, not permanently mounted on a foundation, used for nonresidential purposes could qualify for 7-year MACRS. | |
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