Did you know that you must pay taxes on the profit from the sale of your mobile home or investment property? Considering the highly high toll taxes can take from profits, this is one surprise it is better to avoid when you have made such a considerable investment of time and money. When the value of an investment experiences in growth and is subsequently sold, there is a tax on the capital gain at that time. When the mobile home sells, the capital gains are often a sneaky way to take away more of your profit. Here are a few tips to pay less in taxes.
The IRS approaches taxes on these gains in differing ways, depending on whether the mobile home owner held the home for either short or long term. When selling your mobile home, ask the investor to deduct your cost basis or original purchase price to determine the capital gains. You can subtract the cost basis and any costs of improvements from the profit from the capital gains. This may help you get more money on the sale of your mobile home
Planning your investments, from buying a mobile home to reselling it, should be completed before you ever close on your first mobile home purchase. A significant part of this overall business plan should include avoiding capital gains taxes when it is time to sell your mobile home. We will explore more about what Hemet mobile home sellers need to know about capital gains taxes.
Avoid Unnecessary Fees
When it comes to the sale of your mobile home, my advice is to avoid as many unnecessary fees as possible. This means you should avoid repair fees, realtor fees, legal fees, etc. and sell straight to a mobile home investor. The reason is simple: You are going to get taxed by good ol’ Uncle Same enough, why add more costs to the equation? I spoke with a couple the other day who told me they were going to take out a loan to make repairs on their mobile home because their daughter (who has no experience in selling mobile homes) said she “thinks” their mobile home can sell for $100,000. So now, instead of taking $40,000 cash, they are going to take out a $40,000 loan, hire contractors who are going to rip them off, and try and remodel their mobile home themselves? Oh and don’t forget, they will be paying interest payments on the loan they take out to remodel the mobile home and “hope” it sells for what they want it to. Does this sound like a smart idea to you? Even if they DO sell the mobile home for that price (which is HIGHLY unlikely) they are going to pay more in taxes because they sold the mobile home for a higher price. My advise is to walk away from that mobile home with as much cash in your pocket as possible and save a little extra to pay your taxes/capital gains.
Married vs. Single
In many cases, whether you are married or single can affect how much money you are going to get taxed on your mobile home sale. Divorce is a whole other issue as well. These are many reasons why I suggest just getting rid of the mobile home quickly and keeping as much money as you can in your pocket.
Mobile Home Dreamin understands just what Hemet mobile home sellers need to know about capital gains taxes and what you can do to avoid them – sell to Mobile Home Dreamin or buy a “like-kind” investment from our inventory of great mobile homes! At Mobile Home Dreamin, we make it easy to sell your mobile home quickly, getting as much money back in your pocket as fast as we can! Call Mobile Home Dreamin at (951) 783-2611 or send us a message today!