Mobile Home Park Depreciation Questions

[hostroxllc]

I just purchased a mobile home park in Alabama.  On Turbo Tax is the mobile home park classified as "Multi-family" or as "commercial"?

I just purchased a brand new park owned mobile home for $50,000 that is being rented out.  How is this classified under "Assets/Depreciation"?  All I see is "Tools, Machinery, Equipment, Furniture" > Trailers and Trailer-mounted containers.  Is a brand new mobile home considered as a trailer?

Lastly, what is the difference between a section 179 deduction and special depreciation?  It seems like a brand new mobile home qualifies for 100% special depreciation and a full value section 179 deduction

[DianeW777]

General you break down cost to land, land improvements and buildings if any, and use the class life that applies to each.

• Land value is separate considered an appreciable asset (no depreciation); the land improvements is depreciated 15 years.
• The mobile homes are considered personal property unless they are actually attached to the land.
  • If they are mobile then they would have a class life or recovery period of a lesser amount.  In general the mobile home depreciates much faster then a building. 
  • A good portion of mobile home parks can be allocated as 15-year depreciation. Most of the improvements in these properties qualify for 100% bonus depreciation, which means that 60%-80% of a property can be depreciated in the first year.
• IRS Memorandum About Mobile Homes (explains they are personal property)

Reread the screens and make the correct selection that applies.

Section 179 allows you to use the full cost of a depreciable asset in the year it is placed in service, within limits. Likewise you could choose to use the special depreciation for any cost remaining after any section 179 expense election.

• What is a Section 179 deduction?
• What is a Section 179 recapture?
• First Year Bonus Depreciation
• What is depreciation?