Holmes, Can I Deduct My Mobile Home Interest At Tax Time?

Question from a reader:”Holmes, can I deduct my mobile home interest at tax time?”

0104mobile-home

My answer is first, do people still call each other “Holmes” or “Homie” or “Homeboy/girl” where you come from? If so, can I borrow that time machine and go back about ten years to the time you just teleported in from? I am just kidding but I love being called Holmes! Maybe you are calling me “Holmes” because I am a great detective, like Sherlock Holmes in researching tax information and making brilliant tax deductions? Okay, okay, maybe not. Second, to answer your question, sure, if the mobile home interest is for a mobile home and that is considered as your second home or vacation home or if it is a mobile home that has been installed on a lot (in which case it is considered your primary residence if you are living there, right?). By the way the motor home in the picture above looks like it could use some home improvements while the wind isn’t blowing to knock the shingles off.

According to our friends at the Internal Revenue Service, in publication 936, for you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home (where you sleep and ordinarily live-you only can have one main home at a time) or your second home (as in a vacation home or any place that you choose to pick and treat as your second home). A home includes a house, condominium, cooperative (where you are sharing something in the land or building), mobile home, house trailer, boat or a similar property that has sleeping, cooking and toilet facilities.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment or other deductible purposes. Otherwise, it isn’t treated as personal interest. It is not deductible in that case.

Remember that most mobile homes are bought on a payment plan. The high-end mobile homes, though sales may be down because of the economy, look like super yachts on wheels. Some of the interior bedrooms, bathrooms and kitchens are done up fairly spectacularly. Others, maybe not so much. The interest payments on these mammoths on wheels is tax deductible in the cases that were outlined above.

0104houseboat

The same holds true for that boat that you have. As long as it isn’t a rowboat but is big enough to have sleeping quarters, a galley (that is a kitchen), and toilet facilities and you treat it as your primary residence or second home you are good to go. There are a lot of people who, depending on where they are in their life, their income stream and their family size, decide to live the life on the sea, lake or river and buy houseboats.

So, Holmes, you didn’t tell me in the e-mail what knid of mobile home did you buy? If it is a self-sufficient, self-contained house on wheels, you are in like Flynn. All the best to you, Holmes, and thanks for the question and for being a good sport about this post.

Interested in any of my books, Holmes or Holmestta? I have one out on taxes entitled, “Bad Tax Idea, Good Tax Idea.” You may want to make a stop over here. Please click through to purchase my books and some other interesting items that actually ARE on sale. If you like poker, Heroes (the TV series), comic books, Watchmen, etc, there may be some fast links to get you to what you are looking for.

If you are looking for a day job, part time work, suggestions for saving money or investing, please check out my book listed below. Part of all the proceeds from the sales of that book go to Rett Syndrome research. One girl is born with Rett Syndrome worldwide every fifteen minutes. My daughter Arianna has Rett Syndrome and we are working to do all we can to make her life easier and find a cure in her lifetime. Boys born with the Rett gene generally die at birth.