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 specific tax credits and deductions for this due to the fact that you are indirectly contributing to the property taxes paid by the legitimate owner of the lot.
Understanding 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 what your specific tax credits will be. 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.
Claiming 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.
Video of the Day
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.