Travel Trailer & Taxes??

[Sean D]

I am in california and tax time is coming up I was curious if there is any Tax write offs for secondary home as in the interest on the loan? Not sure if this is the right place for the question..

[jxnbbl]

intuit tax info - LINK

[NH_Bulldog]

I agree with Jay, there are variables involved and a tax preparer is a good place to start.

That being said, where I live I can claim a deduction for most of our annual registration fees and in the past have deducted the loan interest as a second home, but we did not finance this unit when we bought it 5 years ago so I am not current on the rules today.

[chuckster57]

I have lived in Ca all my life. And a few years ago the tax code was changed and NO, the interest on an RV Loan is no longer a tax write off like your home mortgage, unless it was re instated and I didn’t hear about it.

I remember the days that credit card interest and auto loans interest was deductible.

[Sean D]

So per the link posted above,

"Is mortgage interest on an RV or mobile home tax deductible?

Yes. You're allowed to deduct the interest on a loan secured by your main home (where you ordinarily live most of the time) and a second home.

A mobile home, RV, house trailer, or houseboat that has sleeping, cooking, and toilet facilities counts as a main or second home, and as long as it meets all the other requirements for deducting mortgage interest, you can claim the interest like an immovable home."

[JRTJH]

Originally Posted by Sean D

So per the link posted above,

"Is mortgage interest on an RV or mobile home tax deductible?

Yes. You're allowed to deduct the interest on a loan secured by your main home (where you ordinarily live most of the time) and a second home.

A mobile home, RV, house trailer, or houseboat that has sleeping, cooking, and toilet facilities counts as a main or second home, and as long as it meets all the other requirements for deducting mortgage interest, you can claim the interest like an immovable home."

You've got to "qualify that yes" with your personal financial situation. Things like "you must itemize to claim the deduction", "You can not claim the deduction if you use the short form to file", "only a percentage of the interest is deductible and depending on your income level and other deductions you might be able to claim, it may not be beneficial to itemize, but to take the standard deduction"....

So, the answer remains: "Yes, for some, No for others and Maybe for a few"... Check with your tax preparer or if you use Turbotax, run all the options to see if it's even a savings for you ......

[Jeff615]

Originally Posted by Sean D

I am in california and tax time is coming up I was curious if there is any Tax write offs for secondary home as in the interest on the loan? Not sure if this is the right place for the question..

I have been able to write off the interest on my RV loan. My tax guy, who is a tax attorney, hasn't said it can't be done. I am in California

[chuckster57]

Originally Posted by Jeff615

I have been able to write off the interest on my RV loan. My tax guy, who is a tax attorney, hasn't said it can't be done. I am in California

I will have to check with mine tax lady again

[sourdough]

Originally Posted by Sean D

I am in california and tax time is coming up I was curious if there is any Tax write offs for secondary home as in the interest on the loan? Not sure if this is the right place for the question..

You haven't made it clear whether we are discussing fed or state taxes. I have no state taxes in TX but I believe CA has.

For fed, yes it can be deducted, for CA....I don't know.

[dutchmensport]

I checked into this years and years ago (not California though). Your house interest on a home loan is deductible. It's a "home loan". If you have a loan on your RV, it's an "installment loan." The interest on "Installment loans" is not tax deductible. An "Installment loan" is the same type of loan as your automobile loan or a loan you may have to pay for a new set of golf clubs.

But, in California anything is possible. Check with your tax advisor. That's your best source. It does not hurt anything to try and see what they say.

The exception would be, if you use the RV for a business. Then a percentage of the camper's value would be deductible rated over a 5 year period until that value is met.

[sourdough]

Originally Posted by dutchmensport

I checked into this years and years ago (not California though). Your house interest on a home loan is deductible. It's a "home loan". If you have a loan on your RV, it's an "installment loan." The interest on "Installment loans" is not tax deductible. An "Installment loan" is the same type of loan as your automobile loan or a loan you may have to pay for a new set of golf clubs.

But, in California anything is possible. Check with your tax advisor. That's your best source. It does not hurt anything to try and see what they say.

The exception would be, if you use the RV for a business. Then a percentage of the camper's value would be deductible rated over a 5 year period until that value is met.

In years past I received a form with interest paid on an RV as deductible interest from the loan company. It is allowed as deductible for those itemizing. An excerpt from RVIA:

"Under the U.S. tax code, RV buyers can deduct the interest on certain loans used to purchase RVs as a mortgage on a second home. RVs qualify for a second home mortgage interest deduction because they are a popular weekend and vacation ‘home’ for middle-class Americans. RV dealers all over America report that the second home mortgage interest deduction serves as a powerful incentive for middle-class consumers to purchase RVs."

Obviously RVIA is not a tax authority but their comments are in line with what I remember from the instructions from form 1040 (which I don't want to look up). State taxes in CA? That would be a hoot to figure out.

[chuckster57]

Originally Posted by sourdough

You haven't made it clear whether we are discussing fed or state taxes. I have no state taxes in TX but I believe CA has.

For fed, yes it can be deducted, for CA....I don't know.

State income taxes is but just 1 of the taxes we owe.

[wiredgeorge]

My best advice is to NOT ask advice from guys on an RV forum but talk with a professional tax person. The guys on the forum are great with RV stuff but tax stuff? With all the varying advice you received you must realize some might be ok but if so, so might not as it was contradictory.

[jxnbbl]

A good example is that I didn't think California when I first entered my earlier reply. I know that in terms of federal taxes the interest is deductible the IRS publication to look at is 936. A state specific person really should be consulted especially in California as they tend to have different limits/thresholds anyways and it looks like they tried to eliminate 2nd home interest deductions all together a couple of years ago.


Most important, what applies today may have changed from yesterday - so google is not always your friend but I do consult the IRS publications almost annually...I live in a "somewhat" tax free state.

[curtiscapk]

Crap I forgot thanks for reminding me!

[LadyCPA]

Originally Posted by wiredgeorge

My best advice is to NOT ask advice from guys on an RV forum but talk with a professional tax person. The guys on the forum are great with RV stuff but tax stuff? With all the varying advice you received you must realize some might be ok but if so, so might not as it was contradictory.

That is the perfect answer! Accountants need to make a living too!

LadyCPA

[jxnbbl]

This exemplifies the problem with taxation in the country it is way too complicated and ever changing.

[dutchmensport]

Originally Posted by jxnbbl

This exemplifies the problem with taxation in the country it is way too complicated and ever changing.

Agree! Let's cancel all taxes! Hoo-Rah!

[MrKABC]

Originally Posted by dutchmensport

Agree! Let's cancel all taxes! Hoo-Rah!

"I buy THAT for a dollar!"