All Forum Posts by: Cameron Kolling

I am in the process of buying a small MHP consisting of nine lots with eight of those lots having trailers on them that will be purchased with the park. I am not finding a clear answer on how those homes will be depreciated. Will they be depreciated over 27.5 years or as personal property on a shorter schedule?

The mobile homes can typically all go towards 5 year property, which is fantastic. Lots of bonus depreciation opportunity. You'll have next to nothing go towards 27.5 year life. Have you received an estimate?

Thank you so much for responding. Would you be willing to show me where that is found on the IRS website? All I found about mobile homes is this little piece on page 13 of this document saying they are “residential rental property.” https://www.irs.gov/pub/irs-pdf/p527.pdf

It's not about the IRS talking about MHPs specifically. It's about understanding what falls into 5 year, 15 year, and 27.5 year life. Mobile homes are non-permanent buildings that typically fall into 5 year personal property life. Have you received a cost segregation estimate on it?

I have not.

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Lincoln, Nebraska

Quote from @Sean Graham:

Quote from @Cameron Kolling:

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Lincoln, Nebraska

Quote from @Ashish Acharya:

The trailers in the Mobile Home Park (MHP) will likely be treated as personal property and can be depreciated over a shorter schedule, typically 5 or 7 years, rather than the standard 27.5-year depreciation used for residential real estate. This is because mobile homes are generally classified as personal property unless they are permanently affixed to the land.

*This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Thank you for your response. Would you be able to show me where that is found on the IRS website? The only mention of mobile homes I found is on page 13 of this document classifying them as “residential rental property.” https://www.irs.gov/pub/irs-pdf/p527.pdf

0 Votes

Lincoln, Nebraska

1 Vote

Lincoln, Nebraska

All Forum Posts by: Cameron Kolling

Cameron Kolling has started 1 posts and replied 4 times.

Post: Mobile Home Park Depreciation

Post: Mobile Home Park Depreciation

Post: Mobile Home Park Depreciation

Post: Mobile Home Park Depreciation