It’s that dreaded time of the year-Tax time! In honor of tax season, Mom on Dealz has a new series called “Ask An Accountant”. Send in your tax questions each week to firstname.lastname@example.org and she will post the question and give an answer from an experienced accountant. She has offered to share “Ask An Accountant” with Living on Love and Cents readers. I am excited to share this new post each week.
We recently bought a manufactured home in 2010 (une). We have a mortgage on the house, and have a 30 year land lease for the land that it is on. can we claim the land lease on our taxes? Several places i have read give me different answers, some say yes, others say no unless it is a lease to own, which it is not. Any advice on how this plays into our taxes would be great appreciated!!
If the lease payment is broken down by the lessor into principal and interest then you may deduct the interest just like a mortgage. This would typically be a situation where there is a lease to own with a small buyout at the end of the lease. If you are paying the taxes on the land you can deduct that.
*Please keep in mind this post is for informational purposes only and answers given are very general. Many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.