Are gains on a mobile home taxable? the title of a mobile home. I have never lived in the property, and the home was the

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Customer: Are gains on a mobile home taxable?
JA: I'll do all I can to help. Can you tell me more about what's going on?
Customer: my name is ***** ***** title of a mobile home. I have never lived in the property, and the home was the residence of a step-daughter. I had a loan on the trailer, but paid it off. My step-daughter has never removed my name from the title. she has lived in the home for less than 2 years, and has an offer on the trailer for almost double what she paid for it. Is the trailer considered personal property or will it be taxed on gains? I live in Montana
JA: Have you talked to a MT lawyer about this?
Customer: no
JA: What steps have you taken so far?
Customer: None at this point-I want to talk to my accountant to see If I would be taxed on the sale of my step-daughter's mobile, but I am waiting for accountant firm to open
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I can't think of anything else.
Answered by Attorney Matt in 1 min 1 year ago
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Attorney Matt, Expert

Hello! My name is ***** ***** I am an attorney. I am happy to assist you! I am reviewing your question and will be providing a response momentarily.

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Attorney Matt, Expert

You said your name is ***** ***** title also. Is it the only name? And if so, did you purchase or inherit it?

Customer
No, not the only name. My step-daughter's name is ***** ***** the title. The mobile was purchased via loan, then paid off a month later due to my husband's passing with a wish her trailer be paid off. I had my name notarized off the title 1.5 years ago, but step-daughter never got a new title. She is now selling the home, and my name is ***** ***** as a co-owner.
Customer
Purchase price $32k. Selling for $56.5k. She has been in the home less than 2 years.
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Attorney Matt, Expert

I see. So, the stepdaughter never took your name off the title. Does that mean that you will also get your share of the profit?

Customer
no, but I am concerned that I will somehow be responsible for paying on the gains.
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Attorney Matt, Expert

I understand. And it could be a possibility you would be responsible for your share of the gains because there could be capital gains and those would be taxed. Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments, even a car or mobile home. And it does not matter if it is real property or personal property. It sounds like your home is personal property However, manufactured or mobile homes will be valued and classified as real property when the home meets all of the following guidelines:

(a) the running gear is removed; and

(b) the manufactured or mobile home is attached to a permanent foundation, which cannot feasibly be relocated. Two possible foundation types exist:

(i) a concrete, concrete block, or wood perimeter foundation setting on a concrete or concrete block footing;

(ii) concrete stringers with footings or concrete columns with attachment points and the manufactured or mobile home is anchored and permanently blocked and skirted; and

(c) it is placed on land that is owned or being purchased by the owner of the manufactured home or mobile home or, if the land is owned by another person, it is placed on the land with the permission of the landowner.

Customer
The mobile is not on a permanent foundation. It is 'parked' in a mobile home park, so no land attached.
Customer
It is probably sitting on concrete block though. I don't believe there is any wheels attached, but I am not sure.
Customer
More than likely it could be moved off blocks if the home needed to be moved to another location.
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Attorney Matt, Expert

Okay. To me, it sounds like it is still personal property. In any event, there could be capital gains because you are one of the co-owners. However, check with your accountant because there may be a way to claim you never realized a gain (since you never purchased the property yourself but your name was put on it at a later date. Or your gain would be less than the gain from the original purchase prices.

Customer
Sounds a bit confusing to me, but also sounds like I will need to report it to the IRS?
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Attorney Matt, Expert

I think so because even if your step daughter pays your share of the capital gains tax, it could be considered a gift ot you.

Customer
Great, that is NOT what I wanted to hear. I can not think of any more questions, unless you have any additional advice? My accountant is out of the office today, and of course there is a time-sensitive offer on the trailer. I appreciate your advice!
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Attorney Matt, Expert

You are welcome. And of course, I know it is not what you want to hear! Who would want to hear that?! I hear you.

Customer
Thank you for your time this morning.
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Attorney Matt, Expert

My pleasure.

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Attorney Matt, Expert

I have been happy to assist you with this question.

For future questions you want me to answer, you can use the "Ask me a new question" feature on your My Questions page. Or you can "favorite" me which adds me as a favorite Expert for future questions. Best regards

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Attorney Matt, Expert

Thank you for the bonus!

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