Towable Owners Lose Tax Deduction

[EdInArk]

Originally Posted by Badlands Bob

The standard deduction is doubling. I doubt many people are paying $12,000 in interest on their travel trailer. I think it will be a non-issue.

I also subscribe to the "pay cash for toys" theory. It has worked well for me.

Good post. I financed our last rig because pulling that much out of the IRA at once would have put us well into the 25% bracket. Instead, I financed with the intention of paying it off in three years without getting out of the 15% bracket. Now I'm in the 12% bracket.

[Winemaker2]

What about vacation homes?
2nd homes still included AFAIK
So couldn't a non-drivable be considered a 2nd home as long as it has cooking sleeping and rest room facilities?
As in park model?

I'm in the group that would have preferred that any loan for other than primary residence be non-deductable but if you allow 2nd homes it shouldn't favor or penalize MHs TTs Boats etc.

[EdInArk]

Originally Posted by Winemaker2

What about vacation homes?
2nd homes still included AFAIK
So couldn't a non-drivable be considered a 2nd home as long as it has cooking sleeping and rest room facilities?
As in park model?

I'm in the group that would have preferred that any loan for other than primary residence be non-deductable but if you allow 2nd homes it shouldn't favor or penalize MHs TTs Boats etc.

Referring back to wnytaxman's post #3.

[wnytaxman]

I have been researching to see if there is any truth to what was posted in RVTravel. So far I have found nothing that would indicate that the interest on towables would not be deductible. There is nothing that restricts the deduction for second home interest other than the cap on mortgage principal of $750,000. If the second home deduction was limited to only motorized RV’s, that would eliminate the deduction for interest on ALL non-RV second homes. I can find nothing in the legislation that says that the deduction is gone.

There is one facet of this law that may have an effect on many potential purchasers of RV’s though. That is the elimination of the deduction for interest on home equity loans. Many folks look to using the home equity loan as a vehicle to finance their RV purchases and that interest will no longer be deductible under the new law. Now the question here is, does this apply to only new loans and not existing home equity loans? Stay tuned.

I have been a CPA for over 40 years and had my own practice for 38 years and I have never seen any piece of tax legislation so subjected to misinformation from both sides of the political aisle. If you see something that you feel is going to have an impact on you one way or another then look to other sources for confirmation. Please don’t fall victim to the political hype from either side. Find out the facts.

[70ChevelleSS]

Originally Posted by wnytaxman

...I have been a CPA for over 40 years and had my own practice for 38 years and I have never seen any piece of tax legislation so subjected to misinformation from both sides of the political aisle. If you see something that you feel is going to have an impact on you one way or another then look to other sources for confirmation. Please don’t fall victim to the political hype from either side. Find out the facts.

So true. The Republicans will tell you all about the changes that will reduce your taxes. The Democrats will tell you about the ones that will increase your taxes. Hard to know what the net end result will be until you know all of the changes that will affect you.

[CLIFFTALL]

It’s been established that the answer to the op’s question won’t be known until this new law is properly evaluated. Until then we’ll close this thread so no one ends up with coal in their stocking. Thanks to all that participated on the topic.