Some of us are a bit unfortunate that we may be living in mobile homes. Nothing wrong with that. In fact the government recognizes their needs and gives them some relief too. People who pay taxes to the local government for having parked their homes in that state also come under the purview. Thanks to IRS rules which define a home as a house, co-op, condominium, mobile home, trailer, or even a houseboat. The basic condition for any property to qualify as a home is that it should have sleeping, cooking, and toilet facilities.
Since mobile homes meet all these conditions they can avail the tax deductions notified by the federal government. Mortgage interest is the biggest tax deduction available to these guys. Joint tax holders, in fact, can deduct the entire interest amount up to a maximum of $1 million in mortgage liability paid on a first and possibly second house. You don't have to calculate how much amount you deduct. All that you need to do is to wait for the lender to send Form 1098 at the end of the year.
This form will tell you how much interest you have paid on the loan, and the points that are due to you. This becomes your deductible interest. It is much simpler than you think.
Home acquisition debt is where your second advantage lies. This debt is equal to the first or second mortgage used to buy, build, or improve your home. The third is Home equity debt .Basically, this is any loan amount in excess of what was spent to purchase, build, or improve your home. Points paid during refinancing are also tax deductible.
Fourthly, you can deduct any property tax that you paid to a local or state government where you parked your mobile home. These are great tax benefits and every mobile home owner must avail them. What's the point in paying the local taxes and not making the best use of our elected bodies? They are our source of inspiration in saving some money.
Aren't they?.
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