{"id":14524,"date":"2024-01-16T12:29:36","date_gmt":"2024-01-16T12:29:36","guid":{"rendered":"https:\/\/www.projectsmallhouse.com\/blog\/?p=14524"},"modified":"2025-05-01T10:13:52","modified_gmt":"2025-05-01T10:13:52","slug":"can-i-take-my-tiny-home-off-on-my-taxes","status":"publish","type":"post","link":"https:\/\/www.projectsmallhouse.com\/blog\/2024\/01\/can-i-take-my-tiny-home-off-on-my-taxes\/","title":{"rendered":"Can I take my Tiny Home off on my taxes?"},"content":{"rendered":"

Can I take my Tiny Home off on my taxes?<\/p>\n

Maybe. You may be able to deduct taxes or interest.  There are also office or business use deductions you could qualify for.<\/p>\n

It is absolutely worth looking into. Talk to a QUALIFIED tax professional about your specific circumstances. Save receipts. Plan ahead. Think beyond this year.<\/p>\n

Here are some deductions you may be able to take.<\/p>\n

Sales Tax<\/h2>\n

Whether you are building or buying, the year you get a Tiny Home, you have likely paid a lot of sales tax, which is tax deductible.<\/p>\n

You can deduct sales tax or<\/strong> state and local tax. You have to choose which. You can\u2019t take both.<\/p>\n

You can keep all of your receipts or use a worksheet from the IRS. I saved receipts for years. I carefully saved every single receipt for every single thing I bought. I kept an envelope in my purse and transferred them to a plastic file box. At the end of the year I sorted them business or non-business and entered everything into Excel.<\/p>\n

The IRS worksheet almost always gave me a higher number. Nearly every single time. But years where you purchases more than usual would be the exception, so save receipts and check.<\/p>\n

I still save receipts, but I only need the business ones now. Hanging onto all of them is handy, though. Especially if I need to return or exchange something.<\/p>\n

State and Local Income Tax<\/h2>\n

The other choice is to deduct your state and local income taxes. If you are an employee, you will see it on your W-2. If you are self-employed, you have (hopefully) calculated and paid this yourself.<\/p>\n

You have the option to take a deduction for your sales tax or any income tax that wasn\u2019t paid on your federal taxes. One or the other, not both.<\/p>\n

State and Local Property Tax<\/h2>\n

If you have something that is valuable, it is likely taxed in some way. Your property is taxed. Property tax may be deductible from income calculated for income taxes.<\/p>\n

At least in North Carolina, anything that is towed* has to have a tag. If your Tiny House is an RV with a tag or built on a towable trailer frame, you have to pay property taxes when you get a tag.<\/p>\n

North Carolina property tax law requires counties to assess the value of motor vehicles registered with the N.C. Division of Motor Vehicles.<\/p>\n

As part of NCDMV\u2019s Tag & Tax Together program, the vehicle owner pays the property tax at the same time as the vehicle\u2019s registration renewal fee.<\/p>\n

NCDOT Vehicle Property Taxes<\/a><\/p>\n<\/blockquote>\n

If you pay property tax on your tiny house, that tax is deductible. An ADU may increase the value of your home, raising your home property tax… but it’s deductible.<\/p>\n

What about Loan or Mortgage Interest?<\/h2>\n

There are different ways to finance a tiny house, depending on whether it is a park model, manufactured home, modular home or a tiny house that is built in place.<\/p>\n