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12-20-2012, 12:11 PM
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#1
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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RV Interest Deduction
Yesterday I had an audit of a client by the IRS and one of the issues was the deduction of his motorhome interest. (For those of you who are not aware, you can take RV interest off on Schedule A as "Other Interest" as long as your RV has bathroom and kitchen capabilities.) The issue that was raised by the auditor was to ask the question about whether or not he had the original loan papers on the unit. The bank did send him a letter telling him how much interest he had paid, but it did not indicate that the interest was on a motorhome, only that it was an installment loan. For that reason the auditor could not determine if the interest would have been deductible.
If you are deducting your RV interest make sure that the loan papers or letter from your bank indicate that the interest is on your RV. In the unlikely event of an audit, this could save you a lot of hassles and some dollars.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 12:16 PM
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#2
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Community Administrator
Join Date: Aug 2009
Posts: 53,538
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Thanks for the heads up. How many residences can you deduct ? I think it's two. I'm sure this info would be helpful to some.
Thanks
Cliff
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Cliff,Tallulah and Buddy ( 1999-2012 )
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12-20-2012, 12:24 PM
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#3
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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You are allowed to take the interest deductions on up to two residences. One would be your primary residence. On your primary residence the cap on the principal is $1 million. For a home equity, the cap is $125,000. If you have more than two stick and brick homes, you can take the taxes on all of them, but only the interest on two of them which includes your primary residence.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 12:31 PM
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#4
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Community Administrator
Join Date: Aug 2009
Posts: 53,538
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While we're on the subject. How about the interest and taxes on an RV site that you own ?
Cliff
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Cliff,Tallulah and Buddy ( 1999-2012 )
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12-20-2012, 12:42 PM
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#5
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Senior Member
Winnebago Owners Club Workhorse Chassis Owner
Join Date: Aug 2007
Location: Sonoma County, CA
Posts: 6,401
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My loan statement comes from US Bank - Northwest RV Marine. When the IRS questioned my interest deduction, US Bank sent a letter stating the loan was on an RV. That satisfied the IRS and I haven't heard from them again.
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Wayne & Roberta
08 Winnebago Destination 39W Gas UFO Workhorse Chassis......It's really weird being the same age as old people. I thought getting old would take much longer.
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12-20-2012, 12:54 PM
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#6
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by Clifftall
While we're on the subject. How about the interest and taxes on an RV site that you own ?
Cliff
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Cliff, both the taxes and the interest are deductible assuming you are only taking off the interest on one other residence. A lot of my clients rent out their RV lots and take the interest and taxes against the rental income. It would just go on Schedule E instead of the A and it wouldn't matter if you had two residences already.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 01:03 PM
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#7
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Senior Member
Join Date: Mar 2012
Location: Palmer Ak
Posts: 1,136
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For us 'part timers' I understood that one must 'use' the MH for over 30 days in a year in order to qualify for this deduction. I am not sure if that still holds true but....
We keep track of all days that we use the MH just in case.
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2009 38' Diplomat
CSM- retired, wife as co-pilot
Reka & Ali providing security (our 2 labs)
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12-20-2012, 01:43 PM
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#8
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by R2Home
For us 'part timers' I understood that one must 'use' the MH for over 30 days in a year in order to qualify for this deduction. I am not sure if that still holds true but....
We keep track of all days that we use the MH just in case.
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There is no usage requirement for a second home. You could use it 300 days or no days. If you are renting your second home or RV and you are also using it then there are requirements about how much it is rented as opposed to how much it is used personally.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 01:51 PM
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#9
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by Clifftall
While we're on the subject. How about the interest and taxes on an RV site that you own ?
Cliff
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Cliff, I should expand on what you asked and my response. If you have a site in a resort like Outdoor Resorts, which also will rent your site when you are not using it, then you would deduct your interest and taxes as a rental property. You can still deduct your interest on your RV on Schedule A and take the rental taxes and interest on Schedule E. It is actually kind of a nice little tax shelter to work that angle.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 01:53 PM
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#10
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Senior Member
Fleetwood Owners Club iRV2 No Limits Club
Join Date: Sep 2012
Location: Rainbow Riding
Posts: 18,574
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So you do or do not need a primary residence with interest or not, in order to deduct interest on a Motorhome? Say you live in an apartment - can you deduct the Motorhome interest. Or your stick and brick is paid off, can you deduct motorhome interest.
Thank you for the free tax advice.
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Steve & Annie (RVM2)
2008 Fleetwood Bounder 38F ~ 325 ISB Turbo ~ Freightliner XC 2014 CR-V ~ Invisibrake / Sterling All Terrain
Sioux Falls, SD (FullTime Since Nov 5th 2014)
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12-20-2012, 02:03 PM
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#11
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Community Administrator
Join Date: Aug 2009
Posts: 53,538
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Quote:
Originally Posted by wnytaxman
Cliff, I should expand on what you asked and my response. If you have a site in a resort like Outdoor Resorts, which also will rent your site when you are not using it, then you would deduct your interest and taxes as a rental property. You can still deduct your interest on your RV on Schedule A and take the rental taxes and interest on Schedule E. It is actually kind of a nice little tax shelter to work that angle.
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Got it. Thanks for the clarification. I appreciate the info you have posted.
Cliff
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Cliff,Tallulah and Buddy ( 1999-2012 )
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12-20-2012, 02:07 PM
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#12
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by flaggship1
So you do or do not need a primary residence with interest or not, in order to deduct interest on a Motorhome? Say you live in an apartment - can you deduct the Motorhome interest. Or your stick and brick is paid off, can you deduct motorhome interest.
Thank you for the free tax advice.
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Steve, that's assuming you have enough in itemized deductions to hit the limit. If you don't have enough itemized deductions then the standard deduction will be more than your interest and the standard deduction will give you a better tax break.
Ed
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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12-20-2012, 03:06 PM
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#13
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Senior Member
Winnebago Owners Club
Join Date: Nov 2002
Location: Spokane, WA
Posts: 1,545
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Quote:
Originally Posted by flaggship1
So you do or do not need a primary residence with interest or not, in order to deduct interest on a Motorhome?
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No, you do not need a sticks & bricks house in order to deduct the interest on an RV (be it a motorhome, towable, truck camper, etc.). If you are a fulltime RVer with no other home than your RV, you can deduct the interest.
That is, as someone else mentioned, that you have enough total deductions that you can actually use the deduction rather than taking the standard deduction.
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2014 Winnebago Aspect 27K
2011 Kia Soul
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12-20-2012, 03:14 PM
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#14
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Senior Member
Fleetwood Owners Club iRV2 No Limits Club
Join Date: Sep 2012
Location: Rainbow Riding
Posts: 18,574
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Quote:
Originally Posted by LindaH
No, you do not need a sticks & bricks house in order to deduct the interest on an RV (be it a motorhome, towable, truck camper, etc.). If you are a fulltime RVer with no other home than your RV, you can deduct the interest.
That is, as someone else mentioned, that you have enough total deductions that you can actually use the deduction rather than taking the standard deduction.
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Thank you very much! One final question - If you live in an apartment on the beach - and are not full time - and your RV interest on you brand new Prevost exceeds the standard deduction - can you deduct the interest on the Prevost?
__________________
Steve & Annie (RVM2)
2008 Fleetwood Bounder 38F ~ 325 ISB Turbo ~ Freightliner XC 2014 CR-V ~ Invisibrake / Sterling All Terrain
Sioux Falls, SD (FullTime Since Nov 5th 2014)
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