Tax write off?

[scep]

Originally Posted by FlyingDiver

Sounds like the IRS clerk you were dealing with didn't know what he was doing. Probably new at the job.

Quite possibly. My experience with the irs has always been auditors (cpa's) looking to make that big score to get up the cushy ladder. For this one it was a 1098 or denial, and then subsequent appeal.

Righteousness only goes so far when it comes to dealing with them.

[scep]

Originally Posted by wnytaxman

Just to clarify, the instructions to the IRS form 1098 states that it is used to report mortgage interest paid. It later defines mortgage interest as interest paid on a real property loan. So you must have had a very, very uninformed agent and a bank equally as uninformed.

Actually you are misreading the instructions. The bank IS NOT required, but IT IS NOT prohibited from issuing a 1098.

See now?

[Dutch Star Don]

"scep".....I don't know where you're getting your information, but first off, my taxes are done by the book. I NEVER intimated that I was cheating. I was just bringing up a point that the IRS has seemed to overlook. I've done my own taxes for the last 15 years and never claimed a dollar I shouldn't have.

Your 1098 info is also way off base. "wnytaxman" has never led anyone astray or published bad info. I think most will agree that what he states is always spot on.

[scep]

Originally Posted by Dutch Star Don

"scep".....I don't know where you're getting your information, but first off, my taxes are done by the book. I NEVER intimated that I was cheating. I was just bringing up a point that the IRS has seemed to overlook. I've done my own taxes for the last 15 years and never claimed a dollar I shouldn't have.

Your 1098 info is also way off base. "wnytaxman" has never led anyone astray or published bad info. I think most will agree that what he states is always spot on.

sorry I "misread" your post. I apologize for suggesting you were cheating.

[FlyingDiver]

Originally Posted by scep

Actually you are misreading the instructions. The bank IS NOT required, but IT IS NOT prohibited from issuing a 1098.

If they issued it for an RV loan, they did so in error. See https://www.irs.gov/pub/irs-pdf/i1098.pdf, specifically these sections:

Use Form 1098, Mortgage Interest Statement, to report mortgage interest (including points, defined later) of $600 or more received by you during the year in the course of your trade or business from an individual, including a sole proprietor. Report only interest on a mortgage, defined later.

and


A mortgage is any obligation secured by real property. Use the table below to determine which obligations are mortgages.

Real property is land and generally anything built on it, growing on it, or attached to the land. Among other things, real property includes a manufactured home with a minimum living space of 400 square feet and a minimum width of more than 102 inches and which is of a kind customarily used at a fixed location. See section 25(e)(10).

If property that secures the loan is not real property, you are not required to file Form 1098. However, the borrower may be entitled to a deduction for qualified residence interest, such as may be the case for a boat, which has sleeping space and cooking and toilet facilities, that the borrower uses as a home.

[wnytaxman]

Originally Posted by scep

Quite possibly. My experience with the irs has always been auditors (cpa's) looking to make that big score to get up the cushy ladder. For this one it was a 1098 or denial, and then subsequent appeal.

Righteousness only goes so far when it comes to dealing with them.

Very, very few IRS auditors are CPA's and there is a very simple appeal process available within going to a formal appeals hearing and all that would have been required is to produce a copy of the IRS 1098 instructions which are available on line by going to the IRS.gov website. That should have ended the audit right there and very simply. That is why it is good idea for anyone going through an audit to go into the audit with competent professional help.

Bottom line is still that the RV loan interest is still deductible and it does not have to be reported on a 1098, in fact it is a violation of IRS instructions to report it on a 1098.

One other tax tip that I should have mentioned earlier is in regards to the energy tax credit. It is available on the cost incurred to install solar panels on an RV. It is a tax credit not a deduction so you don't need to itemize to take the credit.

[JC2]

Originally Posted by Dutch Star Don

"scep".....I don't know where you're getting your information, but first off, my taxes are done by the book. I NEVER intimated that I was cheating. I was just bringing up a point that the IRS has seemed to overlook. I've done my own taxes for the last 15 years and never claimed a dollar I shouldn't have.

Your 1098 info is also way off base. "wnytaxman" has never led anyone astray or published bad info. I think most will agree that what he states is always spot on.

I also agree as he knows of what he speaks. Several years ago, we received a request from the IRS to furnish a 1098 to support our deducting the interest on our rv loan. We contacted our lending institution at the time and they supplied us with a letter indicating the amount of interest paid in for the year in question. Problem solved.

[scep]

Originally Posted by wnytaxman

in fact it is a violation of IRS instructions to report it on a 1098.

I faithfully await your proof of that.

[FlyingDiver]

Originally Posted by scep

I faithfully await your proof of that.

Read the document referenced in post #47. An RV loan does not meet the requirements for issuing a 1098.

[wnytaxman]

Originally Posted by scep

I faithfully await your proof of that.

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.

[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.

Well to beat dead horse MBNA did issue "me", you know ME??? a 1098 after I requested it and provided them the letter from the irs. I do not know if they in turn filed a 1096, but I'm pretty sure they didnt.


Simple logic is always confounded by others life experiences.

Just sayin....

[wnytaxman]

Originally Posted by scep

Well to beat dead horse MBNA did issue "me", you know ME??? a 1098 after I requested it and provided them the letter from the irs. I do not know if they in turn filed a 1096, but I'm pretty sure they didnt.


Simple logic is always confounded by others life experiences.

Just sayin....

Then the auditor definitely didn't know what he or she was doing, because if you had in fact been issued a 1098, it would have been in the IRS database. A search of the database would have shown that the form was never filed and you would have been back to square one.

[TonyMac]

Originally Posted by wildtoad

Don't know about NC but here to your south need to register the motor home as a second home and not as a vehicle. Also gets us a 4% break on the tax rate.

Not real sure how much one saves on taxes.

Huh?? How do you register your mh as a second home when I did not register my home as a first home? Register with who or whom?? How do you register? You making this up??? What 4% break on what tax rate? My brain hurts!

If your mh, or boat or cabin for that matter, has a kitchen, toilet and bed, it is a home and you can deduct interest paid on it, along with one more 'home'. If your real home is paid off, you can deduct the interest on the boat and mh, two 'homes'. You end up getting back a part of the interest you paid, so you lose less, but still lose.

[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].....