One last first time homebuyer credit

[schirallicpa]

If someone lives in a mobile home (house trailer )on a rented lot, do they qualify for the first time credit? They own the trailer, they rent the lot. They are buying a real house.

In reading the info on the IRS website, I am getting confused. They are saying that the credit is available for someone buying a mobile home:

"Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit?

A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit."

which - if it qualifies as a principle home on the purchase end, then presumably, it is a principle home on the other end, and disqualifies as first time homebuyer credit.

But, 1 question later it contradicts:

"Q. Can an individual who has lived in an RV qualify for the credit?

A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer."

So now I interpret this to mean that a mobile home is not a principle residence, because its not physically attached to the ground.

Anyone else had this question?

thanks.

Hope everyone enjoys their day off tomorrow!!

[grandmabee]

They are a home owner now. they own the mobile they would qualify for the long term home buyer if other qualifications are met

[Margaret CPA in OH]

I see the distinction between a mobile home which is moveable but has no motor and an RV which is moveable but has a motor and is also a vehicle. I find it interesting, though, that an RV can qualify for a mortgage as a second home if it has cooking and toilet facilities. Glad I don't make the rules!

[schirallicpa]

But a mobile home is never affixed to the ground. That fiberglass sheeting isn't really foundation. So I'm still on the fence.

I have another tax preparer telling me that they are going to be eligible for the first time credit. I definately agree with the $6500 credit, but not necessarily the $8000 credit.

[Lion EA]

They have a personal residence. They don't live with Mommy or at a homeless shelter. They're not sleeping in their car, are they? They don't drive their house to work, right? So, maybe they qualify for the $6,500.

[Jack from Ohio]

The regulations refer to "principle residence" not "house" "Home" "Trailer" "Tent" or any other term.

The trailer WAS their PRINCIPAL RESIDENCE and they OWNED it. If they meet the 5 out of 8, then they could qualify for the long time credit.

Realtors are spreading this lie to make sales.

[Cathy]

If someone lives in a mobile home (house trailer )on a rented lot, do they qualify for the first time credit? They own the trailer, they rent the lot. They are buying a real house.

In reading the info on the IRS website, I am getting confused. They are saying that the credit is available for someone buying a mobile home:

"Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit?

A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit."

which - if it qualifies as a principle home on the purchase end, then presumably, it is a principle home on the other end, and disqualifies as first time homebuyer credit.

Sorry....but a mobile home is a "real" home.

Cathy

But, 1 question later it contradicts:

"Q. Can an individual who has lived in an RV qualify for the credit?

A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer."

So now I interpret this to mean that a mobile home is not a principle residence, because its not physically attached to the ground.

Anyone else had this question?

thanks.

Hope everyone enjoys their day off tomorrow!!

[carolynm]

Curious if your answer would be the same if an individual owns a commercial property that also includes a mobile home -a dump but a home, and then this year moves to a separate principal residence. Title to the "dump" has been in LLC for 2 years now (LLC owned by the individual).

[jainen]

>>commercial property that also includes a mobile home<<

Commercial zoning usually allows residential use. In my opinion, the tax position should be based on how the property is actually used, not on what it could be used for under other circumstances. Owning through an LLC is a matter of state law, disregarded for federal tax purposes. (I would guess that even under state law the liability limits of an LLC would be disregarded for property used as a personal residence.)

For a taxpayer who prefers an aggressive position, I think the distinctions between a mobile home, travel trailer, RV, and so on are sufficiently vague to construct an argument. For a tax practitioner, however, I think there needs to be better authority than "it doesn't say you can't."