Phoebe Roberts, EA wrote:

- quote -

The only states I've found so far where this might work are
Maryland and Virginia. Is anyone aware of other states?

MTW

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Anthony Giorgianni wrote:

- quote -

Code Sec 163, 1055, and regs thereunder.

- quote -

That's correct.

- quote -

This article actually is referring to option 2, rather than
creating an additional option 3.

- quote -

It mentions Maryland as a state with appropriate laws. Reg
Sec 1.1055-1 has more detail (IMHO Pub 936 doesn't have
enough information to be helpful). Google isn't helpful in
determining which other states have the right kind of laws.

Phoebe

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This is a copy (with changes) of a post I made to misc.
taxes. Someone suggested that I also post here - I apologize
for not cross posting. I wasn't aware of this group. I have
posted in the other group that I was hoping to move the
thread here. Anyway, here is an interesting question that is
generating lots of conflicting responses on mics.taxes AND
on a message board for mobile home owners.....

Hello All

I'm hoping someone knows the answer to this and whether
there is a certain IRS publication that refers it...

I know an elderly couple (Massachusetts) who have been
taking a federal income tax deduction for the monthly
payments they make to RENT the land in a mobile home park
for a mobile home they OWN.

They do not have an option to buy this land, nor, as far as
I can tell, do they even have a lease. H&R Block and other
accounts have allowed them to take this deduction year after
year. But from what I've seen, these rent payments are not
deductible. Anyone know? And does anyone have a source for
authoritative documentation on this?

(Since my original post, they checked with neighbors, the
park management and the tenant's association, and everyone
in this Massachusetts mobile home park deducts their entire
rent. The management also has sent out notices annually in
the past alerting everyone that the land rental IS
deductible for federal taxes. They now apparently send this
to local tax preparers. So far the views seems to be that
this is 1) NOT allowable and 2) this IS allowable, depending
on how the STATE treats land rental payments and the "right
to redeem." a third view comes from this article I found in
a web search:

3)
http://houseandhome.msn.com/Financin...omeowners.aspx )

I'm now going through IRS publication 936. I'll see what's
there, if I can make heads or tails out of it.

Thanks for any thoughts.

--
Regards,
Anthony Giorgianni

The return address for this post is fictitious. Please reply
by posting back to the newsgroup.

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