Depreciating Mobile Homes - Posted by rachel

Posted by Rich-CA on March 28, 2008 at 22:59:09:

it is my understanding that from the IRS point of view if you COULD have taken a deduction it is assumed that you did take the deduction when they go over your taxes and look for errors.

Depreciating Mobile Homes - Posted by rachel

Posted by rachel on March 26, 2008 at 10:34:14:

Hi Everyone,

I was just wondering how someone would go about not depreciating a rental
mobile home. If I report income as rental income, do I have to depreciate the

If I do, is it better to report the rental income as business income so as not to
have to depreciate the mobile home if I don’t want to? Does it make a
difference if the income is reported as business or rental? The rental is in the
name of the business.

Thanks so much for your help!


Re: Depreciating Mobile Homes - Posted by Alexander (FL)

Posted by Alexander (FL) on August 18, 2008 at 14:30:04:

You don’t have to depreciate a mobile home.
If you do, you take advantage of one of the great advantages of investing in real estate - phantom income - aka depreciation.
Once you sell, you simply recapture it.

Rental income will show on your K1 as business income or real estate income if LLC or S corp depending on how your entity is set up and your business status.