Community Forums

pitcrew18 · 03-01-2013, 06:17 PM

I know there have been several posts in the past on writing off interest on your rig for tax purposes. My question is having bought a new fiver and tow vehicle without financing what can I deduct from my taxes? Thanks in advance for any advice.

wincrasher · 03-01-2013, 06:20 PM

Unless you use your rig for business pursuits, then there are no tax deductions available to you.

Tha_Rooster · 03-01-2013, 06:29 PM

You will have to prove it a business expense if not sorry. I want be long and we want be able to deduct home interest anymore if our government has is way.

Ray,IN · 03-01-2013, 07:41 PM

Quote:

Originally Posted by pitcrew18

I know there have been several posts in the past on writing off interest on your rig for tax purposes. My question is having bought a new fiver and tow vehicle without financing what can I deduct from my taxes? Thanks in advance for any advice.

. The 2nd home interest deduction is for a financed RV. Then only if you already have enough medical deductions to file the long-form. The business deduction, to my understanding, may only be claimed if you use the RV for no other purpose, since it is so hard to prove you have a business-designated area inside for that sole purpose.

wincrasher · 03-01-2013, 08:01 PM

Not quite. If you are on the road full time conducting business, you would deduct all cost just like you would hotel rooms and vehicle expense. This is provided you still maintain a residence somewhere. If you don't, then it gets a bit sticky. In any case, consult a tax advisor before you take the word of forum commenters that may not have a clue what they are talking about.

paz · 03-02-2013, 06:13 AM

Quote:

Originally Posted by pitcrew18

I know there have been several posts in the past on writing off interest on your rig for tax purposes. My question is having bought a new fiver and tow vehicle without financing what can I deduct from my taxes? Thanks in advance for any advice.

You can also deduct sales tax, but I think that ends after 2012. If you bought after Dec. 31, it may be too late.

gajd33 · 03-02-2013, 06:51 AM

Quote:

Originally Posted by paz

You can also deduct sales tax, but I think that ends after 2012. If you bought after Dec. 31, it may be too late.

Bummer!

StevieG · 03-02-2013, 07:57 AM

If you didn't finance the RV or use it as a business, then Paz is correct... the only thing you can do is deduct the sales tax if you pruchased it in 2012. Why not put a loan on it now and put the $$$ into a better investment than a continually depreciating asset? This way the interest you will pay on the loan is hopefully more than offset by the interest or return on the investment... you get to deduct the interest on the loan... AND you also have the original $$$ + that you started with.

I'm sure there are some that disagree with this philosophy and don't want any debt on their plate... I don't disagree for the most part, especially if you have the money... but unfortunately with the tax laws we have in place now, those people are actually penalized having good economic sense...

elkhornsun · 03-09-2013, 04:59 PM

Put a loan at 8% and invest it in something that returns 12% just to breakeven! What dumb advise to give. And what safe and legal investment are you going to find with a 12% or greater return?

If you do operate a business in any fashion on your travels you can deduct the IRS per diem rate for you and possibly your spouse. The amount is very generous for an RVer not staying in a hotel and paying for meals in restaurants.

Surprised that instead of workamping that more people do not take on sale rep jobs and travel in an area with their RV. Lot of companies laid off their salaried sales reps after the bankers crashed the economy in 2008 but still have need for these people. You can work on commission and offset any income with the per diem travel expense.

Instead of getting rich think of an extra $1000 to $2000 a month income and no taxes with the available write-offs of your per diem travel, fuel costs, cell phone, data plan, computer, etc. all as business expenses. Trick is to have income to offset against your RV and related travel expenses.

Paying cash for your RV was a very smart thing to do but when it comes to tax planning the operative word is planning and the time to do this is in the winter for the coming year. Any doubts it is a good idea to run them across a good CPA - they will keep you out of trouble with the IRS.

Appreciate also that the tax laws are written to favor big corporations and the fat cats like Romney with his flat 10% income tax rate. Best strategy is to go with the flow and flow and setup a business structure and incorporate. Again a good CPA can help with all of this.

wincrasher · 03-09-2013, 05:26 PM

Anyone with an investment that yields 12% safely in this economy, please, please, please PM me!

StevieG · 03-09-2013, 07:54 PM

Anyone who pays 8% these days for any loan is either a credit deadbeat or an idiot. Loan rates for people that are not credit challenged are in the 4% to 5% range. There are also many investments vehicles today that will pay at least that kind of return. In addition to an equivalent return or better, you can also write off the interest off the loan... Thus benefiting from the investment and also being able to write off the interest. On the other hand, if you pay cash, you start losing and continue losing till the day you sell your rig... Motorhomes are a depreciating asset. Why the poster above thinks you need to make 12% from an investment to make this idea make sense is beyond me. Sounds like a pay cash and savings account guy... Which is okay because the bank is happy to give him .1% and loan his out @ 4.99%. Who's smarter ?

paz · 03-13-2013, 06:44 AM

Quote:

Originally Posted by gajd33

Bummer!

I was wrong - the deduction for sales tax was extended into 2013. Details HERE.

CampDaven · 03-13-2013, 06:56 AM

Quote:

Originally Posted by StevieG

Anyone who pays 8% these days for any loan is either a credit deadbeat or an idiot. Loan rates for people that are not credit challenged are in the 4% to 5% range. There are also many investments vehicles today that will pay at least that kind of return. In addition to an equivalent return or better, you can also write off the interest off the loan... Thus benefiting from the investment and also being able to write off the interest. On the other hand, if you pay cash, you start losing and continue losing till the day you sell your rig... Motorhomes are a depreciating asset. Why the poster above thinks you need to make 12% from an investment to make this idea make sense is beyond me. Sounds like a pay cash and savings account guy... Which is okay because the bank is happy to give him .1% and loan his out @ 4.99%. Who's smarter ?

I think I am smart. Maybe not smarter.
But I paid off everything and still have a nice egg, that is growing. I have been filing short form for many years, with appropriate schedules for cap gains, etc.
It did take over 40 years to get to this square, but I own it!
Just sayin....

FlyingDiver · 03-13-2013, 07:06 AM

If your state has personal property tax or vehicle registration fees based on the value of the vehicles, those might be deductible. Assuming you have enough deductions to itemize, that is.