Quote:
Originally Posted by Bill
Perhaps I misunderstood the question. If the TM becomes your principal residence, what do you do with your current principal residence? Sell it? Declare it to be a second home?
And I may be wrong - I'm not a Californian - but in most states, I think there is a difference between real estate tax (commonly called property tax) and personal property tax, such as you pay on your car or boat. If you declare your TM to be your principal residence, does it become subject to real estate tax?
Ducking out now ...
Bill
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Here is an excerpt from the IRS website regarding the deductibility of interest that shows that a "house trailer" can be a "main home":
"Topic 505 - Interest Expense
Interest is an amount you pay for the use of borrowed money..........Types of interest you can deduct as itemized deductions on Form 1040, Schedule A (PDF) include investment interest (limited to your net investment income) and qualified residence interest.........Qualified residence interest is interest you pay on a loan secured by your main home or a second home.
Your main home is where you live most of the time. It can be a house, cooperative apartment, condominium, mobile home,
house trailer, or houseboat that has sleeping, cooking and toilet facilities."
I was just asking HF if they had a insight that I didn't have, I'm sorry if I sounded uptight, I've been working a lot of overtime this past month. There are always questions about these new laws that come out and I'm just looking for answers.
This is an excerpt from the CA link I originally posted: "Types of residence: Any of the following can qualify if it is your principal residence
and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home,
or a mobile home."
Here in CA you generally pay real property taxes on land and structures permanently attached, and personal property taxes on things that aren't permanently attached to land.
I guess it gets down to what their definition of a "mobile home" is as far as this law goes. The new structures that go into mobile home parks aren't really mobile homes any more, they are manufactured homes.
If I get some time I'll look up the legislation to see what I can find out.