Tax write off?

[wnytaxman]

Originally Posted by Old Scout

WOW--54 posts and still going--you have to laugh or else you would cry...Not sure who will make it happen but some day our country will be great again! [smile].....

As odd as this may sound, the reason the tax code is so complex is to try to make it somewhat fair. To add to the complexity we have a tax code that is filled with legislation that is designed to provide some level of social or economic benefit. The deduction for the second home interest is an example of that very social or economic benefit. It is designed, at least in theory, to help stimulate the RV, boating, and housing industry. Should it be simplified? Sure, but I doubt that any of us will see any huge changes. There are too many people/industries/special interests that have much to lose if their respective benefit is taken away so I really don't expect any major changes in the tax code other than much hot air being directed toward it.

Any of us with RV loans would holler if we lost that deduction. The reality of taxes is that most people judge the fairness of taxes by how much is paid by someone else.

[777 Driver]

Is now the right time to ask about the loss of the RV loan interest deduction in the AMT calculations?

Take care,
Stu

P.S. Now that I've retired, I haven't had enough income for THAT problem.

[wnytaxman]

Originally Posted by 777 Driver

Is now the right time to ask about the loss of the RV loan interest deduction in the AMT calculations?

Take care,
Stu

P.S. Now that I've retired, I haven't had enough income for THAT problem.

Stu, you will lose the RV loan interest on the AMT schedule. Also, if you use a home equity loan to buy your RV, you may lose some of the interest on the AMT also.

[dubdub07]

Originally Posted by wnytaxman

Stu, you will lose the RV loan interest on the AMT schedule. Also, if you use a home equity loan to buy your RV, you may lose some of the interest on the AMT also.

As a second home, I do not lose my interest or taxes paid on AMT considerations.

[TonyMac]

Originally Posted by Maverick50

The Recreation Vehicle Industry Association. RVIA has made this tax deduction possible. It used to apply, only to Motohomes, but lobbying has included 5th Wheel RVs (not sure about TT RVs.)
If you rent a campsite and are using said campsites for a minimum of six months, the cost of rental is tax deductible. (Not sure if it can be multiple campsites or if it has to be one location.)
The Mileage to said campsite is deductible on a Motorhome and the Tow Vehicle used to pull your 5th Wheel. (Not sure if it can be multiple campsites or if it has to be one location.)
This is what I read about what the RVIA has done for us.
I'm posting this because this is what I read. Check it out. Due diligence is YOUR responsibility.

I'm just the messenger! Don't kill the messenger!

I don't think so. The deduction is an offshoot of the second home deduction, in place for nearly a century and sought by -- wait for it -- politicians who own a home in their district and in the DC area, and of course, sought by the real estate business. It applies to boats, any rv, and cabins as well as traditional homes, even mansions, and allows one to deduct the mortgage interest from your gross income, reducing the amount of income exposed to tax. Two homes is all you get and a home is something, anything almost, that offers sleeping, toilet and food prep. Never heard campsights or any other rent are deductible, and doubt it very much, unless it is a business expense. Mileage is not deductible unless it is abusiness expense. Depreciation; ditto. So, you read it someplace?? I'd be interested to know where, and so would alot of people.

Truth is you can deduct anything, it just has to survive the audit.

[Hit_the_Rhod]

Originally Posted by Old Scout

WOW--54 posts and still going--you have to laugh or else you would cry...Not sure who will make it happen but some day our country will be great again! [smile].....

Yep, my money is on wnytaxman to take the pennant! Some other guy is just Bush League!

[777 Driver]

Originally Posted by wnytaxman

Stu, you will lose the RV loan interest on the AMT schedule.

You're THE MAN, or, is that the wnytaxman! That's exactly as I understand the AMT computation. The RV interest drops out.

Take care,
Stu

[scep]

Originally Posted by wnytaxman

A 1098 is transmitted with a form 1096. At the bottom of the 1096 is the signature line stating that the information that is presented is true and correct and that it is being submitted under penalties of perjury If the 1098 was not issued for the legally required purpose then issuing it would be a violation of IRS regulations. Pretty simple logic.

Perhaps we need to get things back onto the OP's question. I think we can pretty safely say we have answered his question about the RV interest. If I may add that if anyone would like any more information about the use of the solar tax credit, please let me know.

just to clarify, a 1096 is sent to the irs if and only if they send a 1098 to the irs, not me.

The bank can and did send me a 1098 out of the goodness of their hearts as the irs letter asked me for proof of my interest deduction. And it did so without filing a 1098 or a 1096 to the irs.

Maybe thats where your confusion arouse.

I'll take that pennant now.

[wnytaxman]

Interest on the RV is not deductible for AMT purposes. The instructions include the comment that the interest for a second home is deductible for AMT purposes as long as it is NOT used on a transient basis. If someone has consistently deducted it and not gotten caught, that's fine, but in the event of an audit, to paraphrase the old expression, the fertilizer will hit the ventilator.

[CLIFFTALL]

How about real estate tax and mortgage interest on an Rv lot ?

[wnytaxman]

Originally Posted by scep

just to clarify, a 1096 is sent to the irs if and only if they send a 1098 to the irs, not me.

The bank can and did send me a 1098 out of the goodness of their hearts as the irs letter asked me for proof of my interest deduction. And it did so without filing a 1098 or a 1096 to the irs.

Maybe thats where your confusion arouse.

I'll take that pennant now.

I really don't think I'm confused at all. I and others have quoted you the IRS forms, instructions, and simple logic and in your case that is not sufficient. However, in your case, you had a really bad auditor and you tried to handle the audit yourself, which is a very bad combination. Providing a form to an auditor that had not been filed with the IRS is tantamount to lying to an auditor which is a felony. In your case nothing happened so congratulations. I wouldn't make a habit of giving auditors forms that have never been filed. That tactic is the same one used by convicts for years to get bogus refunds.

The bottom line is that RV loan interest is not reported legally on a 1098. That doesn't come from me, but from the IRS, which, correct me if I'm wrong, is what the discussion is all about.

[427ford]

Originally Posted by Clifftall

How about real estate tax and mortgage interest on an Rv lot ?

Interested in knowing this as well. Also, any chance any of the fees for storing an RV are deductible?

[wnytaxman]

Originally Posted by 427ford

Interested in knowing this as well. Also, any chance any of the fees for storing an RV are deductible?

Originally Posted by Clifftall

How about real estate tax and mortgage interest on an Rv lot ?

Sorry Cliff, I missed your question before. Yes, the real estate taxes on an RV lot would definitely be deductible. The mortgage interest would be dependent on whether or not you had taken the interest on another second home, such as the RV. If you had not, then you could take the interest on the lot. One caution here though, you could be challenged here for not having a bathroom, kitchen and sleeping facilities on the lot. An aggressive position would be to take the interest on both the lot and the RV with the logic that they are connected. You may or may not win on that argument.

I wish that you could take the rent on a RV storage, but to do so would require the RV to be a business asset and that can be hard to do. You have to have some very, very specific requirements to have an RV in a business.

[CLIFFTALL]

Thanks , Ed. As usual that will be helpful to a lot of our members.