While there are no tax breaks for your situation, there are some things you want to be aware of.
Your cost basis in the mobile home at the time it was gifted to you is the "lesser" of it's FMV when it was gifted to you, or the gift giver's original cost basis when the giver originally purchased/acquired the mobile home. Since mobile homes typically lose value over time (it depends on what you're calling a "mobile home") then more than likely the lesser value is the FMV of the mobile home on the date it was gifted to you. You need to know this figure, because it will matter in your future. (explained later.)
Generally speaking, if you renovated the mobile home after your acquisition, the term the IRS uses for that is property improvements. Any property improvements you paid for after you acquired the home, add to the cost-basis of the mobile home. So keep your paperwork to show what you paid for those property improvements.
Your cost basis in the home will come into play when any one of three (or more) things happens in your life in the future.
- You convert the property to a rental
- You sell the property
- You die
- Cost basis will also come into play should the home be damaged or destroyed by fire or natural disaster. This "could" matter for tax purposes when it comes to the insurance payout for determining if you have a deductible loss after the insurance payout, or a taxable gain if you do not use the insurance proceeds for their intended purpose.
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