So enjoy the benefits of RV travel and get a tax advantage too!The RV As A Second Home
Most RV owners bought their rig with an RV loan provided by some sort of financial institution. In turn, they are charged interest. In most cases, interest paid on a loan is not an acceptable deduction. Most loans, for example car loans, credit cards, or unsecured loans don't meet the requirements necessary for them to be deducted.
The only loan interest payments that are acceptable deductions today are home mortgage interest payments. Your mortgage holder will supply you with the needed information to determine what portion of your monthly payment went toward the finance charge, or interest portion of the loan. Now this is where your RV comes into the picture.Owners of "second homes" may also deduct the interest portion of their payment on that dwelling as well; and yes, your RV qualifies as a second home.Legitimate Tax Deductions For RV Owners. There are a few basic requirements that must be met to claim your RV as a second home.To qualify, the Internal Revenue Service (IRS) has ruled that:
- The RV must be used as security for the loan.
- The RV must have basic sleeping, cooking, and toilet facilities.
- The RV must be rented out less than 15 days per year.
- Interest expense deductions on the RV must exceed the taxpayers standard deduction.
- Nearly all RV types -- motorhomes, travel trailers, truck campers and many folding camping trailers -- are equipped withthese facilities.*
For example, it must have on-board permanently mounted sleeping, eating, and bathroom facilities. The point being: throwing a bed roll into your van does not make it a motorhome.
hooking-up-airstream-trailer-by-Koocheekoo.jpgA loan on your travel trailer or fifth wheel does qualify for the interestdeduction, while unfortunately the loan on the truck used to tow it doesn't. Apparently, the government doesn't see the point in moving your second home to new locations.
A portion of your RV's vehicle registration can be another tax savings. In some states that don't have personal property taxes, the annual vehicle registration contains both a portion based on the weight of the vehicle and a portion based on the value. The portion that relates to the value is a tax deductible expense.
You may even be able to deduct a portion of the sales tax you paid on that new motorhome or RV trailer you purchased during the past year, too. There's a worksheet on your tax form that will determine how much you're allowed to deduct. This is aone-time deduction, but with the sizable investment of an RV, sales tax is a large piece of your purchase price. Getting some of that back in the spring will be helpful for sure. So enjoy the benefits of RV travel and get a tax advantage too!
Consult with your tax adviser for more information.
Information from RVDA and The Fun Times Guide.