am i correct in that you bought or built a home on the land you lease for the purpose of renting the home?
the question as to whether you have a rental property also revolves around personal use days
personal use days are any day rented at less than fair market rental is a personal use day as is any day rented to family at fair market value and it is their main home
was personal use days more than 14 days or 10% of rental days?
if not then the property is treated as rental property with personal use requiring a proration of expenses
if yes then was the property rented (personal use days don't count) less than 15 days?
if yes the property is treated as a personal residence . do not report rental income or expenses. mortgage interest and real estate taxes are deductible on Schedule A
if not (rented for more than 14 days) then the property is treated as rental property with personal use requiring proration of expenses
among the expenses that may be deductible or need proration are the HOA fees, real estate taxes, mortgage interest, the land lease.
Also am I correct that the cost of the mortgage interest for the life of the loan should be included in the basis? NO. unless I missing something important the interest is deductible - either on schedule a or schedule e or may need proration between the two. the mortgage does not affect the basis.
