I don't know, so I'm asking....

[moodman]

There has been much discussion about the latest USA tax code as it pertains to RVs. Some of it is fact, some of it is true, some is speculation. But I can't seem to get a thorough answer, even from the RVIA (http://RVIA.ORG)

At RVIA, there are two seemingly contradictory statements. The first one says:
"An unintended glitch in the bill, however, effectively removed travel trailers from the definition of “motor vehicle” for the purposes of floor plan financing interest deductibility. "

The second one says "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.

During the recent tax reform debate, a compromise was reached that prevented the elimination of the second home mortgage interest deduction; however, it also decreased the mortgage deduction limit from $1 million to $750 thousand. If the tax reform bill had not retained the mortgage interest deduction, there would have been serious damage to our overall economy in the form of stalled U.S. manufacturing, weakened U.S. employment and fewer RV purchases by consumers."

These statements are found at https://www.rvia.org/advocacy/policies/taxes.

When I bought my fifth wheel in Decdmber of 2017, one of the justifications for me was the deductibility of the interest.

Since it is now time to file my taxes, this question has some urgency for me personally. Can I or can I not deduct the interest I have been paying on my fifth wheel? Will the IRS allow it?

Does anyone know for sure? Please let us all know. No doubt there are plenty of others in my same situation.

Thanks.

[chuckster57]

The best thing you can do is ask a tax professional, IE a CPA or certified tax preparer. I wouldn’t rely on any advice given in an RV forum.

[travelin texans]

Originally Posted by chuckster57

The best thing you can do is ask a tax professional, IE a CPA or certified tax preparer. I wouldn’t rely on any advice given in an RV forum.

I 2nd that motion!

[notanlines]

I have an answer for you. Do what Chuckster ^^^^ and TT suggest.

[German Shepherd Guy]

Chuckster:

[Northofu1]

I would submit it and see where it goes. The thought of canadians getting any tax rebates for anything over the poverty line is preposterous.

[Bisjoe]

My understanding is that it was in fact a deduction last year, if the RV had a kitchen and bath, as a second home. We in fact deducted the sales tax on the trailer and the tow vehicle on our 2017 taxes, but the interest on the loan was not worth bothering with, the amount was so small. Now with the tax changes for this year it will still be deductible based on an article I read this morning from Nerd Wallet.



https://www.nerdwallet.com/blog/tax-...means-for-you/

[JRTJH]

RVIA, depending on where on their website, takes both sides of the argument. In some places they say, "You CAN take the deduction", in some places they say, "You CAN NOT take the deduction" and in some places they say, "There is a technical corrections bill working through Congress that will correct the definition of RV's that qualify for tax deductions."..... It appears that "motorized RV's qualify but the law excluded (inadvertently ???) towable RV's. At least that's the way RVIA explains it at the following location on their website.

On this part of the RVIA website: http://rvlife.com/new-tax-bill-2018/ they say, "contact an accountant to learn how this new law affects you."

Like almost all the previous responders, I'd suggest checking with a "tax professional" to see how the laws affect you. With the increase in standard deductions, fewer people even qualify to itemize, so for many it's a "moot/mute point" <sp> depending on how your income stacks up against the current law.... Again, best advice likely comes from a professional in the tax area, not someone (anyone) on an RV social group.....

[sourdough]

I would also suggest going with a tax professional. You might also go to the source (the ones that will interpret and enforce the law) - the IRS. Call them and ask. On the other hand, I'm not sure what they use as counselors anymore; the last time I talked to them about an issue they didn't know and said that particular dept. was closed for the season so your luck may vary..

[Ken / Claudia]

I do not know about this year, past years I have taken the write off. For 2018 mine would be 372 bucks, I take 2x that for donations given to charity. So, that in itself is no biggie for me. I will find out in about 3-4 weeks.

[EagleandFox]

I was fully prepared to deduct the interest and itemize like I normally have in the past, but this year, the standard deduction of $24,000 for Married Filing Jointly was more than what I would have been able to itemize. I searched through Turbo Tax regarding the RV interest (I search it every year) and it did say it would qualify if sleeping, eating and bathroom quarters. But I am not a tax expert - best to ask one. I ended up not itemizing and taking the standard deduction this year.

[moodman]

Thanks for your comments. Perhaps taxes will be easy this year due to the new standard deduction. I have always itemized in the past, but, who knows??? Our tax system is so regressive.....

[larry337]

"An unintended glitch in the bill, however, effectively removed travel trailers from the definition of “motor vehicle” for the purposes of floor plan financing interest deductibility. "

I agree you should ask an accountant. I already have a second home so I can't deduct the interest on mine anyways. But I will say this, floor plan financing interest is what dealers pay on their line of credit for their new and used inventory. It has nothing to do with mortgage interest or loan interest. So this statement of defining a motor vehicle has zero to do with us as consumers and everything to do with dealers. It's addressed in the following article:

https://pocketsense.com/can-claim-tr...axes-9398.html

[moodman]

larry: Thank you! That was the answer I was looking for. I knew someone amongst all these uber smart people here would know!

[JRTJH]

Just for the record, the link that larry337 posted includes the following statement:

"You should be aware that there is some debate about whether loan interest on travel trailers will be deductible at all for 2018. Some popular RV websites discuss concerns that post-tax reform the deduction might only apply to self-propelled vehicles, excluding those that are towed, like travel trailers. However, others argue that because the section of the new tax code that addresses self-propelled vehicles is completely separate from the section that discusses deductible mortgage interest, it does not exclude travel trailers. See what your professional tax preparer has to say on this one"

The concern is that there are more than ONE condition being discussed. Granted, "Floor plan insurance for dealerships" is a part of the tax exclusions, addressed in the exclusion, another part of that same proposal states the only RV's eligible for second home deductions "MUST BE SELF PROPELLED" (motorized) which excludes all towable RV's. That hasn't yet been corrected in the tax code, so the recommendation to "see what your professional tax preparer has to say on this one".... YMMV

Most married couples with less than about $125,000 in taxable income won't reach the threshold to itemize, so for many (maybe most) it's not even a concern.

[allenclme]

I would always check with a tax professional, but Publication 936 for the 2018 Tax year on the IRS website fully described what qualifies as a home. This includes a "house trailer". I found the same definition in my 2018 Tax year Turbo Tax product.

[moodman]

allenclme. THANKS SO MUCH! This pretty well answers it all. For the benefit of this thread, I include the relevant Pub 936 text here:

"For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities."

AND

"Second home.A second home is a home that you choose to treat as your second home."

Great info!!!

[notanlines]

DJ, you're probably "living on the edge here" with those two posts. I can't see exactly where you're headed with this, but it hints at having a political scent. These discussions usually don't fly very well.

[DJ&JA]

DJ, you're probably "living on the edge here" turned out to be the general consensus from the moderators with no regard to the fact that it was more "historical" as opposed to political.


Whether or not a tax may be applicable to a person is a matter of "law" not politics.


So to be clear, I was coming from a place of historical law regarding the topic presented. I realize that cognitive dissonance is not easily broken so any statements regarding tax law that run counter to mainstream opinion must be purged because they are too uncomfortable to consider.


Sorry to have ruffled so many feathers. I'll try to behave more to everyone's liking in the future.

[flrtrader]

I think this year they removed RV/2nd home deductions. Also took away my milage deduction for work travel. Not a happy camper... pun intended...