mobile home motgage intrest

[Brian]

I am considering purchasing a mobile home in a 55+ park. The home would be my primary residence. I will have a mortgage on the home and am wondering if the intrest paid on the mortgage will be tax deductable ? Whereas the home is in a park where I will pay a monthly lot rent and will not own the land, I was wondering if that would effect the intrest deduction ?

[JohnnyJ]

Mortgage interest on a primary residence is tax deductible on your FIT. It matters
not that you own the land, lease, or rent it. Your rent on the lot in the park is
not tax deductible. Depending on where you live, you may also be able to take
a tax deduction on your SIT. Some states alllow it, some don't, and some states
have no income taxes.

good luck

[Mac]

It is deductable; the lot rent is not. However - only the interest/taxes part of your payment is deductable, principal is not, and there may not be that huge a savings, since the standard deduction is increasing. In a place like California, where the mortgage loan is $150K or so, you would save lots; but if it were only a $50K loan, the savings would be less or nil.