Posted by Karl (Oh) on February 02, 2002 at 22:43:46:
John isn’t referring to the fair market value of a mobile home, but rather to the fair market value of the note you create when you sell a home with owner financing.
Get in touch with one of the note investors over on the paper forum. Ask them what a reasonable discount would be to market a note on a used mobile home on a rented lot. Ballpark, the discount is going to be substantial.
Karl Kleiner
Fair Market Value and Taxes??? - Posted by Bushman
Posted by Bushman on February 02, 2002 at 22:23:36:
I saw a post by John Hyre in the archives that talks about using the cash accounting method with dealer status. This is obviously critical in the tax avoidance arena. The post is shown below…
http://www.creonline.com/mobilehomes/wwwboard4/messages/640.html
I think I understand the law and why it was passed, but who really determines fair market value for accounted sale price on the transaction?
Certainly, fair market value would be different everywhere and NADA is really no help on this. For RE, fair market value is a matter of public records with the county register and drive by appraisals, but mobile’s are different (at least in my state - MI).
Blane, correct me if I am wrong on this, but in MI, there is not a place to go find out what folks paid for “like” mobiles to help determine fair market value.
Thanks for any advice…
Re: Fair Market Value and Taxes??? - Posted by lyal
Posted by lyal on February 03, 2002 at 13:01:48:
Bushman,
As Karl says, you need fair market value for the note not the home here. It’s pretty easy to list the note on ANN (America’s Note Network) or similar boards and get a couple quotes. Print them out and drop them in your file just in case anyone (IRS?!?!?) has any quesitons.
All the best, Lyal