Are interest payments on (mobile) manufactured homes tax deductable? What about sales or property taxes?
Like most things – the answer is – it depends. The following information is educational but subject to change and is certainly incomplete. Consider this as a starting point for discussions with a tax professional.
State and Federal tax laws and regulations can and do change frequently. Consult a licensed tax professional. This is not legal advice and I am not a tax professional. I am providing some of the commonly asked questions and links to official websites where you can learn more. I also recommend that you do a search for “mobile homes tax (county name)” – you can also use the word manufactured instead of mobile.
California Taxes on Mobile Homes in Parks
California (as of the time of this article) does charge both sales and property-related taxes on mobile homes in parks. However, the specifics can vary depending on factors like the age of the mobile home, whether it’s considered personal property or real estate, and its location within the state.
1. Manufactured Homes Frequently Asked Questions (FAQs)
Sales Tax
- New Mobile Homes: Generally subject to sales tax on 75% of the dealer’s cost.
- Used Mobile Homes: May be subject to sales tax based on its current value if sold through a dealer or real estate broker.
Property Taxes
- Mobile Homes as Personal Property: Typically subject to an “in-lieu” license fee, similar to a vehicle registration fee.
- Mobile Homes as Real Estate: If the mobile home meets specific criteria (like being permanently affixed to a foundation), it might be subject to property taxes.
Important Note: The distinction between personal property and real estate can significantly impact the tax implications. It’s essential to consult with a tax professional or the local county assessor’s office to determine the specific tax treatment for a particular mobile home.
Additional Considerations:
- Homeowner’s Exemption: You may be eligible for a homeowner’s exemption, which can reduce your property taxes.
- Park Fees: While not a tax, remember that residents of mobile home parks typically pay monthly or annual lot rent fees.
For more detailed information, please refer to these resources:
- California State Board of Equalization: Provides information on sales and use taxes.
- Local County Assessor’s Office: Can provide information on property taxes and exemptions.
