How to Calculate Depreciation on a Mobile Home

Know the depreciated value of your mobile home.

Unlike traditional homes, mobile homes are likely to depreciate rather than appreciate over time. Although you can calculate depreciation on your own, you may want to consult an appraisal guide to get an estimate on what your mobile home is worth before selling. Newer mobile homes have been built using materials and technologies meant to last for a significant period of time. The standard depreciation calculation gives you your taxation rate.

Advertisement

Step 1

Review the year that you purchased the mobile home. Mobile homes purchased after January 1, 2000, can use the standard depreciation method to determine your tax rate. You must know the exact sale price of the mobile home.

Video of the Day

Step 2

Reduce the sale price of the mobile home to 80 percent if it is furnished and 95 percent if it is unfurnished. For instance, if you paid $20,000 for the mobile home, your initial depreciation amount would be $19,000 for an unfurnished model and $16,000 for a furnished property.

Advertisement

Step 3

Subtract 5 percent from the initial depreciated sale price for each year you have owned the mobile home. As an example, if you owned the mobile home for two years, the value has depreciated by another 10 percent. For the $20,000 example, that would mean the market value would be $17,100 for an unfurnished mobile home and $14,400 for a furnished home. A maximum depreciation rate of 35 percent is permitted for furnished homes and 50 percent for unfurnished mobile homes.

Advertisement

Advertisement

Step 4

Receive an appraisal from a county auditor. Instead of using the traditional depreciation calculations, you can request a market value price from a county auditor. The value given is used to determine your tax rate.

Tip

Consider the location of your mobile home when determining the property’s value. If you are in a desired area, such as close to a metropolitan location, your mobile home may increase in value.

Video of the Day

Advertisement

Advertisement

Report an Issue

screenshot of the current page

Screenshot loading...