The Manufactured Housing Forums

I beleive I have tough question. We purchased a brand new manufactured this passed year and a portion of the price was California Sales/Use tax. Can that Sales/Use tax be placed in the Tax and interest worksheet for FIT purposes? If not, why not, we paid it, it was part of our cost and the home had not yet been converted to a permanent foundation, therefore was not on the property tax rolls and considered mobile or does it qualify as an "other personal property tax"

Carolyn,
The sales tax you paid on your manufactured home can be added to your sales tax calculation if you itemize your deductions on your Federal return. Since in California you also have State Withholding Tax, you can only take one on the itemized deductions. You should calculate your sales tax, based on the charts if you didn't keep all your receipts (I don't know anyone who does) and then you can add for certain purchases - a car or mobile home are allowed. Then compare to your State Withholding (plus any state tax you paid in 2005 if you had a balance due from 2004) and you can take whichever. What you can't take is the interest on your loan for the home - if not Real Property, then the interest is not deductible. This is what needs to change.
Hope this helps.

Folks here should consult with a tax professional, when taking care of their taxes..

You are right about the sales tax deduction which cam back in 2004..but I do not think you are right about home interest...Any interest on ANY home is deductible on both primary and secondary home...Which I believe even includes houseboats and Rvs neither of which are real estate....Again...those reading this should get professional advice when filing taxes.......

Excuse me, there is no sales tax on manufactured homes sold in California. The only sales tax can be on accessories. If you paid a sales tax on the home itself you need to contact California Department of Housing and Community Development if the dealer won't refund this money.

Ray,

When we purchased a mobile home, we were charged sales tax on some percentage of the total price. The company we purchased from had the wrong %, and they picked up the tab on the difference. If I remember correctly, we paid sales tax on 40%, but California changed the % to be something like 60% in 2005.

Michael