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Updated almost 3 years ago on .
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Mobie Home - Accellerated Depreciation
Will a mobile home, newly purchased from the factory put to use as a rental, that is not immediately converted to real property, qualify for the 2017 accelerated deprecation, since it's personal property ? If the answer is "yes" then after taking the accelerated depreciation, could it then be converted to real property and take the standard deprecation at 27.5 years? Would this be a tenable application of tax law? I've asked this question of 2 CPA's. One yes, and one no. There appears to be some differences between how lenders treat mobile homes versus the IRS.
From a lending and Realtor perspective, I'm familiar with the personal/real property designation (and how to convert the mobile to real property), but not from the IRS tax perspective.
- Bill Schrimpf
- [email protected]
- 775-741-2326

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- Cost Segregation Expert and Investor
- Lakewood, NJ
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@Bill Schrimpf If the mobile home is treated as 'personal property' from a depreciation perspective, and it gets fully depreciated as 5 year property (or in the first year with 100% bonus depreciation), you cannot depreciate it again. Even if you convert it to real property, the reality is that it's been fully depreciated already.