Interest Deduction

TimHolt · 08-23-2016, 06:59 AM

Can you deduct the interest on your RV like you can the mortgage interest on your home?

bansai · 08-23-2016, 07:01 AM

You can where I live. It probably depends on your unique situation though... i.e. how much you make, etc.. like all things in the tax code.

mike837go · 08-23-2016, 07:40 AM

It is my understanding that the U.S. Federal tax code allows interest deduction only on your primary residence.

If your financed Jayco is your primary residence, then you've got a shot at it.

If there is any doubt, consult a paid tax advisor. Their job hinges on their advice. Anybody else is just guessing.

Bobs A Class · 08-23-2016, 07:40 AM

My tax expert, the DW, says it is a Federal deduction.

Bob

J.Lockhart · 08-23-2016, 07:45 AM

Just be careful in that the RV interest deduction is viable using the "second home" deduction. However, if you are already using the second home deduction on a vacation/weekend property... you cannot deduct the interest from your RV.

Consult your local tax authority.

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maromeo · 08-23-2016, 07:51 AM

Yes it is. I don't get a 1098 from my bank on the TT so I call them every year to make sure our numbers match. Keep that in mind also.

From the IRS publications:
For you to take a home mortgage interest de- duction, your debt must be secured by a quali- fied home. This means your main home or your second home. A home includes a house, con- dominium, cooperative, mobile home, house trailer, boat, or
The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is consid- ered personal interest and is not deductible.

Hope it helps.

DownTheHighway · 08-23-2016, 07:51 AM

yes, it's considered a "second home", my accountant deducts it every year we had the TT

Camping Couple · 08-23-2016, 07:54 AM

It is a federal deduction. It goes in the same catagory as your mortgage interest deductions. You don't need a form 1098 like you get for your home interest deduction. Just list the financial institution where your loan is from and the total interest paid for that tax year.

DocBrown · 08-23-2016, 08:12 AM

Yep, it's deductible. As said above it's viewed as a second home. And it must be self contained. Pop-ups and tear drop trailers for example are not self contained.

Rustysocket · 08-23-2016, 08:22 AM

Quote:

Originally Posted by TimHolt

Can you deduct the interest on your RV like you can the mortgage interest on your home?

In some cases you can, but there are some stipulations.

Don't take your financial or insurance advice from people on the internet.

Talk to a professional.

**norty1** · 08-23-2016, 10:10 AM

We used to deduct it as a second home. We also get a break on the personal property using the same stipulation. We have to fill out a form stating that it qualifies as a second home because it has a br, kitchen and bath with our local tax auditor.

It's a nice break on local property taxes. Totally determined by local laws.

We don't have any interest deductions anymore for 2 reasons. We file short federal forms ( don't itemize) and no interest paid anyhow.

Camper_bob · 08-23-2016, 10:29 AM

Quote:

Originally Posted by Rustysocket

In some cases you can, but there are some stipulations.

Don't take your financial or insurance advice from people on the internet.

Talk to a professional.

+1, from a CPA. I really love it when my clients start a conversation with "I heard I can deduct XYZ ..." Every now and again, we will get a missed deduction, but mostly it's just "bar talk" and wishful thinking.

For starters, the interest deduction is an itemized deduction. If you don't (or can't) itemize, no deduction.

One commonly missed potential deduction is on an RV purchase. If your state does not have income tax, and instead has sales tax, you may be able to deduct the sales tax paid on the purchase of the RV. That goes for other vehicles and major purchases as well.

Again, best thing to do is talk to a trusted professional.

RoyBraddy · 08-23-2016, 10:32 AM

I just paid off my mortgage this month on my 5th wheel... This will be my last year getting this deduction. This was a ten year note so that's how long I have been doing it...

Not a whole lot of deduction but in todays ecomony every little bit counts haha...

Roy Ken

Bookemdanno · 08-23-2016, 12:09 PM

I'm sure someone will correct me if I'm wrong, but my accountant also deducts the taxes that we are charged monthly for the storage facility that we use.

Rustysocket · 08-23-2016, 12:33 PM

Quote:

Originally Posted by Bookemdanno

I'm sure someone will correct me if I'm wrong, but my accountant also deducts the taxes that we are charged monthly for the storage facility that we use.

I'm sure your accountant does what is appropriate for your situation

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Camper_bob · 08-24-2016, 07:40 AM

Quote:

Originally Posted by Bookemdanno

I'm sure someone will correct me if I'm wrong, but my accountant also deducts the taxes that we are charged monthly for the storage facility that we use.

It's just sales tax (which in TX is required on storage of RVs, and trailers, but not boats sitting on trailers, go figure that one). We have tracked our actual sales tax paid for 2 years now and compared it to the "standard" sales tax deduction on our tax return (figured using an algorithm based on your location and your income), and the "standard" sales tax deduction comes out higher every time. The sales tax on our storage fees doesn't amount to much anyway (I think about $45 per year IIRC).

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