INCOME TAX ON MOBILE HOME AND LAND SALES - Posted by AL

import · November 16, 2004, 2:04pm

Posted by John K Haslach, CPA, MST on November 19, 2004 at 10:38:34:

Correct, the installment method is not available to dealers. Your original posting did not indicate this was an issue. The installment method is also not available for certain sales of depreciable property to a controlled entity and for sales or exchanges between spouses. If dealer status is an issue for you, you should consult with a practitioner who is comfortable with the area. There very well may be other tax issues involved of which you should be aware.

import · November 16, 2004, 2:04pm

Posted by AL on November 16, 2004 at 15:04:02:

Can you pay taxes on the profit as you receive it on land home sales with owner financing or do you have to count all the profit the year of the sale.

import · November 18, 2004, 10:09pm

Agree with Tony - Posted by Diane (TX)

Posted by Diane (TX) on November 18, 2004 at 23:09:40:

You can report gain on installment method, but only if you’re not a dealer. If you’ve owned for 2+ years and are only selling one or two, you should be OK. Also, I believe you have to count all the depreciation recapture in the year of sale.

import · November 16, 2004, 2:47pm

Re: INCOME TAX ON MOBILE HOME AND LAND SALES - Posted by John K Haslach, CPA, MST

Posted by John K Haslach, CPA, MST on November 16, 2004 at 15:47:36:

If it is an installment sale, you would pay taxes over the life of the installment obligation.

import · November 18, 2004, 5:54pm

Re: INCOME TAX ON MOBILE HOME AND LAND SALES - Posted by Tony Colella

Posted by Tony Colella on November 18, 2004 at 18:54:56:

My understanding is this would not be true if the investor shows and intent and pattern of buying and selling land/home packages as this would constitute a dealer activity. Dealer status treatment would then disallow the installment sale.

Your thoughts John?

Thanks,

Tony