Can I Claim Mobile Home Lot Rent on My Taxes in Michigan?

If you rely on a mobile home as your primary form of residence, the chances are high that you will be able to identify a number of valuable tax deductions for this property. Likewise, if you rent a mobile home lot, there will be certain deductions available to you that the actual owners of the lot cannot claim. If you are renting a mobile home lot, you will be able to receive the Michigan Homestead Property Tax Credit for this due to the fact that you are indirectly contributing to the property taxes paid by the legitimate owner of the lot.

TL;DR (Too Long; Didn't Read)

If you meet residency, income and value requirements for your mobile home lot, you can be eligible for Michigan's Homestead Property Tax Credit and get some money deducted from your state tax obligations.

Understand the Basics

When you rent a mobile home lot, you are essentially paying your landlord for property that he has purchased. Given the fact that your landlord is also paying for this property via property taxes, the state of Michigan considers your rent as a form of property tax payment. When you are ready to file your income taxes, your specific lot rent will be used as the basis for calculations that will determine how much of the Homestead Property Tax Credit you will get. However, there are certain requirements which must be fulfilled in order for you to be eligible for these credits. For example, you must have been a resident in Michigan for at least six months of the last year, and your total household resources must be less than $50,000.

Claim Your Credit

Once you have determined your eligibility, you can use form MI-1040CR in order to receive the appropriate credit. To calculate your credit, you may first deduct $3 per month for lot rent which cannot exceed $36. Then, you may also add 20 percent of your annual rent payments minus the initial amount you calculated up to $36. If you were required to pay taxes on any additional properties on the lot, you can deduct these payments as well.

Save on Your Taxes

Once you have completed your forms, you can expect that these deductions will be credited to your overall tax obligations for the year. It is essential that you take the time to double check all of your calculations in order to ensure that you have properly assessed your deductions. Inaccuracies in these calculations may lead to significant delays in the processing of your return. As you can see, however, this process can help you substantially reduce your annual tax burden and ensure that you receive the maximum possible assistance with your taxes at year's end. If you have any questions about your tax documents, it may be worth your time to consult a CPA or online tax assistant in order to ensure that you file your paperwork correctly.

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About the Author

Ryan Cockerham is a nationally recognized author specializing in all things innovation, business and creativity. His work has served the business, nonprofit and political community. Ryan's work has been featured at Zacks Investment Research, SFGate Home Guides, Bloomberg, HuffPost and more.