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I have heard that by owning a home that your federal income tax is reduced. Does this still apply to mobile homes? If so, how much reduction could I expect? I currently have a tax rate of 28%. Living in a state with no income tax, but has property tax.

Would I be able to write-off repairs on this mobile home?

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Paying interest on a mortgage on your residence allows you to deduct the interest, but only if all of your itemized deductions (mortgage interest, charitable donations, qualified medical expenses) are more that the standard deduction. So it only "lowers your taxes" to the extent that it gives you a bigger deduction.

Property tax is deductible as well, but also would only help you if the total deductions are more that the standard deduction for you or your family.

And yes, it applies to a mortgage on a mobile home (or condo, but not rent on an apartment since you don't "own" it). It does not apply to properties you own but do not live in (e.g. rentals)

Would I be able to write-off repairs on this mobile home?

No.

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    Property tax deduction as well. Where I live, it's a significant amount. I'm paying an amount equal to 1/2 of my principal+interest in property tax. (So e.g. my P+I is 1000/month and my property tax is 6000/year. Those aren't the real numbers, but they are the real proportions I'm paying.) – shoover Oct 26 '17 at 15:32
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    @MattCrandall Correct. only the interest is deductible. – D Stanley Oct 26 '17 at 15:32
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    +1 to D Stanley, there are other things to consider: tax policy can change and mobile homes tend to depreciate greatly. So in theory, a year after you make such a purchase the deduction could go away, and in about 5 years the home could be worth half of what you paid. – Pete B. Oct 26 '17 at 16:28
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    Excuse me but is the property tax really deductible from income taxation in USA? – NikoNyrh Oct 26 '17 at 19:59
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    Note that property tax and mortgage interest on rental properties are both deductible as business expenses. Combined with depreciation, this is often enough to give a paper loss with positive cash flow. – chrylis Oct 26 '17 at 20:05

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