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Old 07-02-2016, 06:48 AM   #1
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Declaring Homestead and 2nd mortgage with RV

We are presently Florida residents. Florida is known for having one of the best homestead laws for 2 reasons. First, Florida does not allow one's "home" to be taken in a Bankruptcy. Second, you can get up to a $50k tax exemption.

As far as the first, while I'm not worried about a Bankruptcy, assuming the worst, that I didn't have enough coverage in an accident, then a bankruptcy may be a last resort. I've researched this first issue, and you pretty much have to be permanently parked with an address. Thus, unless it is only for a few months, that is probably not going to happen for us since we plan to travel. I only bring this up for those that want to know that I've done the research if you were wondering but also to differentiate the other part of my question.

That second part is, the $50k tax exemption and second mortgages. Short story is that we are getting ready to sell our home and will therefore lose our exemption. Can I get it with the RV, if I park it for a few months starting January 1st? Also, relatedly, the Dealer told us that it is better to get an RV loan BEFORE we sell our home because it can be written off as a second mortgage? As a bonus, the interest would be lower on a loan because it is called a second mortgage and not just an RV loan. Any truth to that?

We've only got a few weeks to decide as we were originally going to wait a few months. For the record, I'm not asking legal advice, only other's experiences. Thank you so much.
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Old 07-02-2016, 07:01 AM   #2
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We are Florida Residents (officially anyway) as well. We do not own property there. Our motorhome loan interest is still a right off even though we are retired and have no S&B home. We do own a lot in a Class A resort in Virginia. The law states that an rv or boat can be written off as a second if it has a both a kitchen and a bathroom, that's it. The interest level is what it is and I don't think it is tied to be a second. It is our experience that it is maybe a point higher than a home loan depending on the amount and terms of course. No closing costs however, except some loans require you to pay the sales tax for a new RV up front. Florida will charge you sales tax for an RV you have owned for less than six months when you register it with the state.
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Old 07-02-2016, 07:27 AM   #3
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In SC and RV is considered a home and gets property tax applied and falls under the Homestead Act if you are 65+ and an RV loan is like a home loan you can claim the property taxes and annual loan interest paid on your federal and state income taxes. Just like a house. You must be resident of SC, which usually means you have a fulltime address. So if you have a FL resident address your good.
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Old 07-02-2016, 07:29 AM   #4
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Quote:
Originally Posted by angelbones View Post
That second part is, the $50k tax exemption and second mortgages. Short story is that we are getting ready to sell our home and will therefore lose our exemption. Can I get it with the RV, if I park it for a few months starting January 1st? Also, relatedly, the Dealer told us that it is better to get an RV loan BEFORE we sell our home because it can be written off as a second mortgage? As a bonus, the interest would be lower on a loan because it is called a second mortgage and not just an RV loan. Any truth to that?
The homestead exemption is on property taxes. You don't pay property taxes on an RV, so the exemption is out.

You can take a deduction for the RV loan as a second (or first) home no matter when you buy it. It's not a second mortgage, which would be an additional loan using your S&B property as collateral. While it's possible the interest rate on a second mortgage (on your S&B home) would be lower than the interest rate on an RV loan, you would need to pay the second mortgage when you sell the house, which probably is not what you're planning on doing.
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Old 07-02-2016, 12:24 PM   #5
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FlyingDiver has the right of it. You don't need and can't get a property tax exemption cause there is no property tax on the coach. And the RV loan interest tax deduction has nothing to do with first or second mortgages. The loan interest is deductible as long as the RV qualifies as a first or second home under IRS rules, which basically just require that it has a bathroom and a kitchen.

There are some messy federal financing regulations that apply to loans on a primary residence and some RV lenders prefer to avoid them altogether. If you still have a fixed site home, the RV is assumed to be a secondary residence and no questions get asked. But if the RV is your only home, the federal regs apply and add quite a bit to the lender's paperwork. Once the loan is granted, it no longer makes any difference and you can then sell the house.
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