MHP: Credit for Sales of Manufactured Home Parks to Cooperatives (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule MHP is used by qualified sellers to claim the Credit for Sales of Manufactured Home Parks to Cooperatives. It documents the sale’s qualifications and calculates a credit equal to 5% of the qualified property’s sales price.
Who files this form
Qualified sellers must complete Schedule MHP to claim the Credit for Sales of Manufactured Home Parks to Cooperatives. 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 these:
- A cooperative, Minnesota housing cooperative, or association organized under state Chapter 308A, 308B, or 308C, whose shareholders are entitled to occupy a lot in the park after the sale.
- A charitable corporation organized under Minnesota law, 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 acting on behalf of residents, as defined in Minnesota Statutes section 327C.015, subdivision 13, who buys the property for residents intending to form a cooperative or association.
You must answer “yes” to all five qualification questions in Part 1 to qualify.
What you'll need
To complete Schedule MHP, have this information available:
- Taxpayer name and identifying numbers. If you enter an SSN or ITIN, you do not need to enter a Minnesota Tax ID number.
- The park’s location and property classification.
- The buyer’s organization type and the occupancy rights or plans described in the qualification questions.
- The final sales price of the park.
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 must be checked to qualify.
- In Part 2, line 1, enter the final sales price. The instructions say 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.
For tax year 2025, report the credit on the line that applies to you:
- 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 one of these returns, as applicable:
- Form M1, Individual Income Tax Return.
- Form M2, Income Tax Return for Estates and Trusts.
- Form M3, Partnership Return.
- Form M4, Corporate Franchise Tax Return.
- Form M8, S Corporation Return.
- Form M4NP, Unrelated Business Income Tax Return.
Common mistakes
- Claiming the credit without meeting every Part 1 qualification. All five questions must be answered “yes.”
- Using a price other than the final sales price on Part 2, line 1. The instructions also say the sale should be a third-party transaction at fair market value.
- Filing Schedule MHP without the applicable tax return. The schedule must be filed with one of the listed 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. The credit is nonrefundable and may be carried forward to five succeeding taxable years.
Which taxes can the credit offset?
It can be claimed against income, corporate franchise, or unrelated business income taxes.
Can a partnership or S corporation pass through remaining credit?
Yes. 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. The instructions say you do not need to enter a Minnesota Tax ID number if you enter an SSN or ITIN.