tax cite needed - Posted by tax cite wanted

Posted by Don Wilson (OK) on April 11, 2006 at 22:45:33:

Randian:

25 year property…Heres the Pub 946 reference. Get a new CPA that knows rental properties. I’m not a tax guy just able to read. Have fun…

Don Wilson (OK)

25-year property. This class is water utility property, which is either of the following.

Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property.

Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996.

Residential rental property. This is any building or structure, such as a rental home (including a mobile home), if 80% or more of its gross rental income for the tax year is from dwelling units. A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. It does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy.

Nonresidential real property. This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27.5 years.

tax cite needed - Posted by tax cite wanted

Posted by tax cite wanted on April 10, 2006 at 16:13:38:

Anybody have a tax cite or IRS publication # for the proposition that mobile homes separately titled as personal property (true for park homes) are treated as real estate, not personal property, when leased as dwelling units? This means that for mobile homes:

  1. 27.5-year straight-line depreciation is mandatory
  2. rents are excluded from self-employment tax
  3. gains and losses are capital, not ordinary

Since mobile homes are personal property for state law purposes, the darn CPA wants to treat them as personal property for federal income tax purposes.