💼 As the work-from-home trend grows, many self-employed individuals living in manufactured home communities are asking a smart question:
Can I deduct part of my space rent if I run a business from my home?
The answer: Yes, in many cases you can.
🏡 What Is Space Rent?
In most manufactured home communities, residents own their home but lease the land—commonly referred to as space rent or a lot lease fee. Just like rent in a traditional apartment, this monthly fee can be substantial—especially in desirable 55+ communities along the coast.
💰 The Home Office Deduction
The IRS allows self-employed individuals to take a home office deduction if they use a portion of their home exclusively and regularly for business. This means if you use part of your manufactured home as a workspace (for example, a spare bedroom turned into an office), you may be able to deduct a portion of your space rent and other household expenses.
✅ What You Can Deduct
If eligible, you may deduct a percentage of:
- Space rent
- Utilities
- Internet and phone
- Home insurance
- Repairs and maintenance
- HOA fees (if applicable)
🔍 How It Works
Here’s a simple example:
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Your home is 1,200 sq. ft.
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Your home office is 120 sq. ft.
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That’s 10% of your home
If your space rent is $800 per month, you could deduct 10% = $80/month, or $960/year, just from your space rent alone.
📋 Requirements to Qualify
To take the deduction, you must:
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Be self-employed (filing a Schedule C with your taxes)
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Use the space exclusively and regularly for business
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Maintain documentation (photos, floorplan, receipts)
📝 Pro Tip
You can choose between the Simplified Method (a flat $5 per square foot up to 300 sq. ft.) or the Actual Expense Method (based on actual costs and business-use percentage). The actual method often provides a larger deduction, especially if your space rent is high.
🏁 Final Thoughts
Many residents of manufactured home communities don’t realize that space rent may be deductible if they run a business from home. This is a great way to reduce your taxable income and maximize your hard-earned money.
Always consult a qualified tax professional to make sure your deductions are accurate and compliant with IRS rules.
If you’re self-employed and living in a 55+ manufactured home community, take advantage of every opportunity—including your space rent.
