Property tax portion of lot rent?

[Ross]

A co-worker prepared his own taxes. He lives in a double wide park and owns his own home, and pays over $2k year for lot rent/maintenance. He assumed that at least $500 of the $2k was attributed to property taxes and took an extra $500 standard deduction. He doesn't have enough to itemize. He told me his Federal refund was short approx. $75 and wondered why.

I assume the $500 extra deduction was not allowed. His address has his lot #, so I imagine the IRS determined that the property tax deduction he took was actually his lot rent/maintenance fee. If he gets an itemized statement showing the portion that went to cover property taxes do you think he will get the extra standard deduction?

[Jiggers]

Property taxes on rental property?

A co-worker prepared his own taxes. He lives in a double wide park and owns his own home, and pays over $2k year for lot rent/maintenance. He assumed that at least $500 of the $2k was attributed to property taxes and took an extra $500 standard deduction. He doesn't have enough to itemize. He told me his Federal refund was short approx. $75 and wondered why.

I assume the $500 extra deduction was not allowed. His address has his lot #, so I imagine the IRS determined that the property tax deduction he took was actually his lot rent/maintenance fee. If he gets an itemized statement showing the portion that went to cover property taxes do you think he will get the extra standard deduction?

1. No. You have to own the property.

2. You may be grasping at straws as to why the refund is different. You need to look at the adjustment notice that the IRS should have sent.

[Jesse]

2. You may be grasping at straws as to why the refund is different. You need to look at the adjustment notice that the IRS should have sent.

In total agreement, because the address has a lot # the IRS would not be able to determine that the property tax deduction he took was actually his lot rent/maintenance fee. For all they know he may have moved in 2009, therefore the address won't match the property tax deduction.

1. No. You have to own the property.

I'm not disagreeing on this, I'm asking, if he owns the home, but not the lot the home sits on and is charged property tax assessed on the value of the home wouldn't this be deductible? The city/village/township should have a statement of the actual, not assumed amount of property tax assessed.

[taxmom34]

my understanding

is that mobile homes are not taxed as real estate, they are taxed as personal property taxes. and if they are situated in a mobile park and pay rent for the use of the land, the land owner is the one who submits his deduction for real estate taxes paid.

[AJsTax]

is that mobile homes are not taxed as real estate, they are taxed as personal property taxes. and if they are situated in a mobile park and pay rent for the use of the land, the land owner is the one who submits his deduction for real estate taxes paid.

Not all areas are the same. Here a mobile home is considered a home and receives a real estate tax bill just the same as I do for my stick built home.
The issue on the lot though is pretty simple, if he is part owner of the land then he can take his share, if he is only renting the lot, then no, the amount of the taxes belongs to the owner and is a business expense.

[kaimana]

The lot rent is equal to a lease fee charged for a condo or home where the owner of the residence pays a lot lease fee to the owner of the land that the residence sits on. No part of this is considered, or should be considered as property tax, it is simply a payment for the use of the land. The property/personal tax deduction for the actual land is paid for and expensed by the land owner.

[BHoffman]

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