I purchased a mobile home with my husband in Florida with cash. We pay a monthly lot rental. How should I handle this with the IRS?

[DawnC]

You don't need to do anything on your taxes until you sell it.   The purchase of a personal residence, not used as a rental or in a business, is not reported on a tax return.  There is no deduction for rent paid on the federal tax return and FL does not have a state income tax to deduct rent from.   

The only thing that might come into play is your sales tax.   If you itemize, you can deduct either sales tax or state and local taxes paid and it may be more beneficial for you to take the sales tax deduction.   It matters only if you itemize, so if you don't itemize, it won't make any difference.  

For most people who itemize, the state and local income tax deduction gives them a bigger tax break. However, the sales tax deduction may be more advantageous for taxpayers who:

• Are residents of Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming
• Made a major purchase and therefore paid a lot of sales tax
• Made frequent or substantial purchases in a state with high sales taxes

Where do I enter my sales taxes paid?