5th Wheel/TT and The New Home Tax Break 2009

[rockintom]

I bet many folks wonder about the new tax credit break for 2009 on a new home purchase. Did some research and won't get into detail, but found out that a non motorized trailer DOES qualify for this tax break, but only IF it is permanently AFFIXED to land (you don't have to own the land) and is your main residence. If you move it to travel then it doesn't qualify. I called the IRS answerline to confirm. My TurboTax program lead me to believe I could take the tax break. There's alot more to it, but won't get into it here.
Dawg Gone It!!! rockin'

[KU9L]

#%^&*$@!!!!!!!!!!!!

[rockintom]

Quote:

Originally Posted by rockintom I bet many folks wonder about the new tax credit break for 2009 on a new home purchase. Did some research and won't get into detail, but found out that a non motorized trailer DOES qualify for this tax break, but only IF it is permanently AFFIXED to land (you don't have to own the land) and is your main residence. If you move it to travel then it doesn't qualify. I called the IRS answerline to confirm. My TurboTax program lead me to believe I could take the tax break. There's alot more to it, but won't get into it here. Dawg Gone It!!! rockin'

This is copied directly out of the IRS website.

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.
Q. Can an individual who has lived in an RV qualify for the credit?
A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer.

[KU9L]

So much for the little guy getting a break in this ...Argh!

[Endeavor2BnC]

Quote:

Originally Posted by rockintom This is copied directly out of the IRS website. 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. Q. Can an individual who has lived in an RV qualify for the credit? A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer.

Notice that throughout the rules is the key operative word "MAY" . They WILL always use their subjective opinion to make the final judgement.

[janieD]

I'm glad you researched this our tax preparer told us to do the research since it was something he had never dealt with but didn't think it would apply to us. So thanks for saving us some time on the internet.

[Lynnvt]

However, I think you can deduct the interest on the loan.

[rockintom]

Quote:

Originally Posted by janieD I'm glad you researched this our tax preparer told us to do the research since it was something he had never dealt with but didn't think it would apply to us. So thanks for saving us some time on the internet.

Your welcome Janie...hope to meet in person someday soon when you guys "get with it"? rockin'

[rockintom]

Quote:

Originally Posted by Lynnvt However, I think you can deduct the interest on the loan.

You're right! We didn't do a loan. Some states allow registration tax and fees deductions....our state TX is one that doesn't! rockin'

[BookIIRoadtrash]

Quote:

Originally Posted by janieD I'm glad you researched this our tax preparer told us to do the research since it was something he had never dealt with but didn't think it would apply to us. So thanks for saving us some time on the internet.

Janie, With you going into retirement and needing to have one’s ducks in the proper order. I think I would be looking for a new Tax Person., that is what you hire them for is their knowledge. If mine told me to research an issue I’d tell them “I’d be researching a new Tax Preparer.“. Just m2c...

[janieD]

Actually, he has been very good but we are his first client that were buying an RV for their primary home so he was doing the research but also wanted John to so he didn't miss anything. So they were double teaming it. He knew that John and I are on forums specific to this issue and so may find out something that he hadn't found yet even though his first thought is that it wouldn't fit the criteria.

[KU9L]

I wonder how long they require to be "fixed to the land" to qualify? I can't see them being able to deny it if we changed our minds a couple years later?

[rockintom]

Quote:

Originally Posted by KU9L I wonder how long they require to be "fixed to the land" to qualify? I can't see them being able to deny it if we changed our minds a couple years later?

I thought the same thing.....doubt if they would send someone to our "permanent address" in Livingston, TX to check and make sure we were "affixed" there!

My bride used to teach business ethics in her former life and actually believes what she teached. So we didn't take the deduction......this lady is one that finds a penny on the street and trys to finds the rightful owner!! If that's not possible she'll donate it to a good cause. I get in trouble with her for tasting a grape in the produce section of the store. The way I look at it....they should take in consideration how much wine I buy there!!