1031 Exchange On Mobile Homes
This may be in a post, or common knowledge on this forum. The question is:
When you sell a mobile home that is investment property, do you have to do a 1031 exchange? In California, the DMV regulates mobile homes, so I'm thinking it's like a car, whereas, if you pay property taxes, you would have to 1031 the property?
Anyone know how they qualify? Or if one way is better tax wise than another?
thanks,
Chris
No seller of anything HAS to do a 1031 ever...it's only done on real investment property where seller wishes to defer his taxes.
Can indeed be used for a car, if it's a real collecable, or painting, etc., but not just the car you're driving...not that the usual car is going to have any profit over its cost.
And just what is it that would make a MH any kind of investment property? And how come it's gone up in value?
Doesn't make sense to me as I never heard of any MH without land going anywhere but down.
[addsig]
They're going up in California. When the median home price in LA County if $400K plus, it forces the value of condos, townhomes and mobiles up!
Well Said --
Yes ... mobile home & manufactured homes IN parks and ON land due increase in price and many times over.
The old thinking and they just continually go down in price to only worth barely $1 has long past for several years ... at least in California.
I have had many clients make money:
1) Buy at $10,000 - $15,000 a few year past and have sold for $50,000
2) Buy at $30,000 then sold at $75,000.
Cheryl Lopez
I'm hoping to make about $30K in just under 2 years. We'll see. My problem is that I rented it to my sister-in-law and claimed it on my taxes. Not much depreciation, however, I'm concerned about cashing out on the $30k profit. I want to make sure how the IRS views them or before taking the money or knowing I have to do a 1031.
Chris
If you'll call one of the 1031 Facilitator Companies listed in your yellow pp., you'll get some good specific advice on how to, and cost of, doing 1031 on your MH.