MHP: Credit for Sales of Manufactured Home Parks to Cooperatives (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule MHP is used to claim the 2024 Credit for Sales of Manufactured Home Parks to Cooperatives. It records the seller’s qualifications and the park’s sales price, then calculates a credit equal to 5% of the sales price of qualified property.
Who files this form
Qualified sellers must complete Schedule MHP to claim the Credit for Sales of Manufactured Home Parks to Cooperatives.
To qualify, the seller must be paying income, corporate franchise, or unrelated business income tax. The manufactured home park must be in Minnesota and classified as class 4c(5)(i) or 4c(5)(iii) property.
The buyer must be one of the following:
- A cooperative or association organized under Minnesota Chapter 308A or 308B, whose shareholders are entitled to occupy a lot after the sale.
- A Minnesota charitable corporation with no outstanding stock and IRS tax-exempt status, whose members hold residential participation warrants entitling them to occupy units in the park.
- A nonprofit or representative buying on behalf of residents who intend to form a cooperative or association.
You must be able to check “yes” for every question in Part 1 to qualify.
What you'll need
Have the following information ready to complete Schedule MHP:
- Your taxpayer name and identifying number. The form asks for an FEIN or Social Security number and a Minnesota Tax ID. The instructions say a Minnesota Tax ID is not needed if you enter an SSN or ITIN.
- The park’s location and property classification.
- Information about the buyer and residents’ rights to occupy the park after the sale.
- The final sales price.
You must also file Schedule MHP with the applicable tax return: Form M1, M2, M3, M4, M8, or M4NP.
How to file
- Enter your taxpayer information.
- In Part 1, check each box whose answer is “yes.” All five boxes must be checked to qualify.
- Enter the final sales price on Part 2, line 1. The sale should be a third-party transaction at fair market value.
- Multiply line 1 by 5% (0.05) and enter the credit on line 2.
- Report the credit on the appropriate line:
- C corporation: Form M4T, line 23.
- S corporation: Form M8, line 12.
- Partnership: Form M3, line 11.
- Sole proprietor: Schedule M1C, line 13.
- Fiduciary: Form M2, line 21.
- Tax-exempt organization: Form M4NPI, line 4d.
File Schedule MHP with Form M1, M2, M3, M4, M8, or M4NP, as applicable. The supplied text does not provide mailing addresses or e-filing directions.
Common mistakes
- Claiming the credit without meeting every Part 1 qualification. All questions must be checked “yes” to qualify.
- Using a sales price other than the final sales price. Part 2, line 1 calls for the final sales price, and the instructions say the sale should be a third-party transaction at fair market value.
- Filing Schedule MHP by itself. It must be filed with one of the listed tax returns.
Questions people ask
How much is the credit?
The credit is 5% of the sales price of the qualified property.
Is the credit refundable?
No. It is nonrefundable and may be carried forward to five succeeding taxable years.
Which taxes can the credit offset?
The credit can be claimed against income, corporate franchise, or unrelated business income taxes.
Can partnerships and S corporations pass through the credit?
Yes. The instructions state that any remaining credit may be passed through to partners and shareholders.
Do I need a Minnesota Tax ID if I enter an SSN or ITIN?
No. If you enter a Social Security number or Individual Taxpayer Identification Number, you do not need to enter a Minnesota Tax ID.