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Are Modular Homes Tax Deductible?

Discussion in 'Main Forum' started by Sarah, May 8, 2014.

  1. Sarah

    Sarah New Member

    May 8, 2014
    I love how much information the site provides on modular homes, but I came across one bit of information I'd appreciate some clarification on. In the section about tax credits for modular homes it says "property taxes are entirely tax deductible."


    That seems too amazing to be true. Is it an error or is it actually true? Does it apply to all the states?

    I tried to find information on the IRS website but I could only find a reference to mobile homes having a slight deduction, and no mention of modular homes. If I missed it I'd really appreciate someone directing me to the right page.
  2. jake

    jake Owner Staff Member

    Apr 21, 2014

    Yes, it's true! As long as you're paying your taxes directly to the taxing authority (and not, say, to a company that is helping you with unpaid back taxes), your property taxes are tax deductible. Here's an IRS article that can provide even a bit more insight.

    However, like all tax-related stuff, it does get a bit complex. For example, if the tax is a "local benefit tax" that goes towards "improvement to property" such as assessing sidewalks, streets, or sewer lines, then it IS NOT tax deductible. But if it's a local benefit tax that goes toward repairing those things, then it IS tax deductible. Because of nuances like that, I'd advise you to consult with a tax professional on any tax-related questions you may have.

    The reason you can't find any information on tax deductions for modular homes is that - as far as the IRS is concerned - a modular home is exactly the same as a site-built home. I believe mobile/manufactured homes are different since they are treated as property (like an car) and not real estate for tax purposes.
  3. Sarah

    Sarah New Member

    May 8, 2014
    Thank you. I'll talk to a tax consultant, but I'm genuinely grateful just to know it's a possibility.
  4. Michael Hensley

    Michael Hensley New Member

    May 27, 2015
    I was also facing the same confusion but the solution and article given by Jake proved to be really fruitful which has cleared my many queries related to property taxes.

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