Posted by Park on January 30, 2006 at 12:03:39:
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Posted by Park on January 30, 2006 at 12:03:39:
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Selling after 2 yrs., again and again… - Posted by Park
Posted by Park on January 28, 2006 at 12:19:34:
Hello–
I have a tax question.
I bought a double-wide mobile home. I’ve had it for about 6 months.
I’m considering making the mobile home my ‘residence’ of record, and then
selling it after two years. This is possible I think, as my other residence is in
an apartment bldg. about 1 1/2 hours away.
It’s inexpensive lot rent at the trailer court and I plan to use this mobile as a
base to operate. I’m an independent contractor and have chunks of time that I
can be at the mobile home location doing ‘Lonnie’ deals.
I could sell this mobile at the two year mark, and hopefuly qualify for the
$250,000 exclusion. I would sell the mobile and carry the paper. There is a
good probability that the buyer will need to move on, and NOT finish paying
down the note prior to moving, This is not uncommon. AND there is a high
probability that the buyer won’t be able to sell the unit later for cash, and
cash me out, as very few buyers will be able to get a conventional loan on this
mobile. It’s in good shape, but it’s an older unit. The seller, unable to find a
cash-out buyer, will turn to me, and I will get the mobile back.
I will take the mobile back for what the buyer has already paid, then resell it.
My question is: Can I continually sell this unit and enjoy tax-free income from
this unit until I (impossibly) reach the $250,000 mark? That could go through
ten sellings!
Or-- maybe it’s better just to use the mobile home as an office write off.
Any thoughts?
Thanks anyone for help with this,
Park
Re: Selling after 2 yrs., again and again… - Posted by Brad Crouch
Posted by Brad Crouch on March 14, 2006 at 21:53:11:
Park,
I’m certainly not an attorney, but I’d like to pose a question or two.
Is the mobile home “attached” to the land? And if not, isn’t the mobile
home considered “personal property”? And doesn’t the $250,000 tax
exclusion only apply to “real” property?
Brad
Re: Selling after 2 yrs., again and again… - Posted by dealmaker
Posted by dealmaker on January 28, 2006 at 17:07:29:
Each time you (presumably) get it back starts the clock ticking on the two years. The $250K mark is on “one sale”, it’s not a lifetime target.