Homebuyer Credit Mobile Home

[EllieB]

Taxpayer has lived in a mobile home for past 10 years. She owns the mobile home(which is considered personal, not real property in her state), but pays rent on the land beneath it.
1. She is in the process of buying a condo; will complete purchase by end of December.
2. She has her mobile home up for sale, but sales are very slow. It may take several months to sell.
3. She owned and lived in a house for many years before moving to mobile home.

Is she eligible for the 6500 credit?

[Emily]

Enrolled Agent

The $6500 credit for puchasing a new home only applies if the taxpayer has lived in their current home for five consecutive years. If the $6500 Credit guidelines are the same as the $8000 New Homebuyer credit then the mobile home will not count for the $6500 credit

[AuditorTurnedGood]

not to answer a question with a question

but would she qualify for the 8K instead? I know there have been a couple of discussion about the effect of a mobile home on the credit. You might want to search the board for "mobile homes" and see what comes up.

ATG

[RLymanC]

The mobile is your principal residence and you are purchasing another personal residence. You lived in it over 5 of the last 8 years,,you qualify for the $6,500, not the $8,000 (not a first time homebuyer)

You are not required to sell the mobile, keep it for a rental if allowed, however if you sell it you qualify for Sec 121 exclusion. ($250,000 or $500,000)

[ChEAr$]

Agree with RLymanC. If a double wide (what a mobile home is called down South) can be
financed and mortgage interest on a 1098 deducted on schedule a, this is a case where
a house is a home. (Not all houses are homes.)

[AuditorTurnedGood]

You lived in it over 5 of the last 8 years,,you qualify for the $6,500, not the $8,000 (not a first time homebuyer)

If you want to get tehnical, the actual code says that someone that qualifys for the $6,500 credit is, in fact, a first time homebuyer. Apparently it was opposite day when this was written.

ATG

[Black Bart]

Here's

something from the Form 5405 instructions:

Main Home. Your main home is the one you lived in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

[Emily]

Ea

I did answer incorrectly on the first answer. I do know that a mobile home does not count as a first time homebuyer for the $8000 credit. If a taxpayer owns a mobile home and purchases a single family dwelling, condo, townhome I believe they will qualify for the $8000 first time buyer in that as IRS code state that a mobile home won't count as a first time homebuyer it seems logical the taxpayer can own a mobile home and has never owned another home then they should qualify for the $8000 1st time homebuyer credit.

[Jesse]

I did answer incorrectly on the first answer. I do know that a mobile home does not count as a first time homebuyer for the $8000 credit. If a taxpayer owns a mobile home and purchases a single family dwelling, condo, townhome I believe they will qualify for the $8000 first time buyer in that as IRS code state that a mobile home won't count as a first time homebuyer it seems logical the taxpayer can own a mobile home and has never owned another home then they should qualify for the $8000 1st time homebuyer credit.

If a taxpayer owns a mobile home and purchases a single family dwelling, condo, townhome they will NOT qualify for the $8000 first time buyer.

The mobile is your principal residence and you are purchasing another personal residence. You lived in it over 5 of the last 8 years,,you qualify for the $6,500, not the $8,000 (not a first time homebuyer)

You are not required to sell the mobile, keep it for a rental if allowed, however if you sell it you qualify for Sec 121 exclusion. ($250,000 or $500,000)

but as Rlymanc said could qualify for the $6,500.

[ChEAr$]

Oh drat!

something from the Form 5405 instructions:

Main Home. Your main home is the one you lived in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

You mean it didn't say "double wide?" (grin

[Black Bart]

Say Em,

I did answer incorrectly on the first answer.

Welcome to the board and congratulations on your candor (I've been tryin' to get my dentally-challenged fellow poster, Snaggletooth, to 'fess up to his mistakes for five years and cain't get the peckerwood to do it)

I do know that a mobile home does not count as a first time homebuyer for the $8000 credit.

However, I have to disagree with you about this. I believe that the instruction for Form 5405 that I quoted regarding mobile homes is specifically referring to the $8,000 credit (go to Google -- type Form 5405 and there it is).

If a taxpayer owns a mobile home and purchases a single family dwelling, condo, townhome I believe they will qualify for the $8000 first time buyer in that as IRS code state that a mobile home won't count as a first time homebuyer it seems logical the taxpayer can own a mobile home and has never owned another home then they should qualify for the $8000 1st time homebuyer credit.

I gather that your reasoning here is, since you believe the mobile home does not qualify as a home, then by that same logic it would not count against him as having owned a home in the past three years for the $8,000 credit. Again I disagree. Do you remember where you read that "IRS code" that mobile homes did not qualify? No offense meant -- just a friendly clash of opinions . C'mon back. Thanx. BB

[Black Bart]

Good thing you're from down here or

You mean it didn't say "double wide?" (grin

I'd have to holler that I'm offended by that racist...um...no, no...I mean redneckish term.

P.S. I've got an overweight friend they call "Double-wide."

[Gene V]

Agree with Bart

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Q. If a taxpayer purchases a mobile home (manufactured home) with land and qualifies for the credit, is the amount of the credit based on the combined cost of the home and land?
A. Yes. The first-time homebuyer credit is ten percent of the purchase price of a principal residence. The total purchase price (mobile home and land) is used to determine the amount of the first-time homebuyer credit.

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.

Q. Can a taxpayer who purchases a travel trailer qualify for the credit?
A. A travel trailer that is affixed to land may qualify as a principal residence.

[JohnH]

I'd have to holler that I'm offended by that racist...um...no, no...I mean redneckish term.

P.S. I've got an overweight friend they call "Double-wide."

In some parts of NC, the correct term would be a "Wheeled Estate".