Deductibility of a trailer home

[Lesley Resnick]

I have heard conflicting arguments as to whether a trailer home is 100% deductible in the year of purchase.  Are there an CPA's who can shed light on this.  If this is possible, then the mobile home market stands to grow significantly.

Argument in favor:

1.  Can not be connected to the ground, it must be personal property.

2.  You will need to rent the land it is on.  If you own the land then it will be real property, not personal.  A variation being the land is held in one llc and the property in another and one pays the other ground rent. 

Argument against:

1.  IRS does not consider it personal property and should be capitalized over its useful life.

2.  Specifically excluded.

If this works, then the tax savings are amazing.  I could finance the trailer home and write off the entire amount in the first year.  If I sold it in year 2 could i do it again?  I don't believe there is a recapture for personal property.  The profitability of the home would not matter, the tax deduction would more than make up for it.