It’s Not A Trailer

Expert, localized Los Angeles answers provided by Heather Roy

It’s Not A Trailer
	Dear Edith, We were given a two- bedroom trailer by a relative in her will. It is in Florida and we pay land rent. If we sell the trailer how do taxes figure in the sale? We put money in the trailer to fix it up.

	Your cost basis starts with the value of the mobile home when you inherited it (we’re not supposed to say “trailer” these days.) You can add to that anything you spent on permanent improvements, but not repairs or redecorating. Your profit will be considered a long-term capital gain, at favorable tax rates.
	Edith Originally published on October 23, 2005

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