My parents bought two double wide in 2016 before this they have never purchased any kind of home, they normally file separate but since they have purchased both double wide together; how do they claim one or both double wide can each claim one or only one on each separate return or only one on one return and nothing on the other return or only one home on a join return? They are married.
Married filing jointly is almost always the best filing status for a married couple. On a joint return they would use all the mortgage interest and property taxes paid on both homes assuming it's their main home or second home. And if itemized deductions provides a better tax break than the standard deduction.
- Note: The deduction for mortgage interest is strictly for the main home and second or vacation home. Property taxes can be used on any property owned.
If they do choose to file married filing separately, if one person itemizes deductions the other must itemize deductions. In other words the other spouse would not be allowed to use the standard deduction. In this scenario they would each take the amount they actually paid in mortgage interest and property taxes on the loan secured by the double wide/mobile homes for which they are liable to repay.
- They may want to file both ways to see which is the most advantageous. State law may be a factor based on the results of that return as well.