Depreciation of Parks


#1

I’m trying to find info on the proper deprecistion of mobile home parks. I have tried the IRS site and they have clear schedules for office buildings etc., but I haven’t found anything on parks. Is there any rules on the split between land values and improvements?

Thanks for your help!


#2

I am no tax expert, but I expect the mobiles to depreciate on quick schedules as personal property. Buildings and pads get depreciated over longer periods of time as they are considered real improvements.

For the most part the expected life of the improvement is the biggest factor in depreciation schedules.

http://www.irs.gov/publications/p946/index.html


#3

Pat, Most people depreciate the MH’s over 7-10 years. The land improvements are depreciated over a longer period. I am now underway on hiring a cost segregation company in order to maximize my depreciation on several MHP’s. The cost is about $4 - $5k but it having the cost segregation study will allow you to maximize depreciation taken.

Corey


#4

Any news on the segregation study?


#5

Steve,

I am still working on the analysis to see if it makes sense to do the cost segregation report for my properties. You can contact Laura and she can provide you basic cost/savings information for your property if you like.

Laura Collins

Director, Business Development

SOURCECORP Tax Benefits Group

LIFO Systems, L.P.

Office: 415.694.3435

Fax: 817.731.2343

laura.collins@sourcecorptax.com