If you demo the mobile home and there is no salvage value, there would be no depreciation recapture.
If you leave it on the property, then if at anytime the mobile home is sold, you would report the depreciation (if any) in the year of the sale.
When you placed the mobile home in-service as a rental, you gave it a basis. Basis is the value or your cost and that is what the depreciation is calculated on.
For example, if the basis (value) was 27,500 when you placed into service and it depreciated 1,000 a year, and you rented it for 10 years, the depreciation would be 10,000 and your "Adjusted Basis" would be 17,500.
If you sell it for 17,500 or less, there is no depreciation recapture. Anything over 17,500 would be depreciation recapture.
If it is demo-ed, there is no value gained or recovered, and therefore no depreciation recapture.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
