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09-07-2020, 06:56 PM
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#1
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Member
Join Date: Aug 2020
Posts: 38
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Deductible interest?
Can someone BS check me? A sales guy told me if we buy a class a new we can deduct 100% of the loan interest as a second home, but that we cannot if we buy used. Called it a ‘millionaire exception’?
I smell shenanigans but wanted to ask experts.
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09-07-2020, 07:05 PM
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#2
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Senior Member
Forest River Owners Club
Join Date: Apr 2005
Posts: 418
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I'm not a tax expert, but I don't believe there is any difference in the deduct-ability of interest for new vs used. I believe, assuming you have enough deductions to meet the itemization threshold, you can deduct the interest on any RV as a second home.
This would apply to Class A, Class B, Class C, travel trailers and fifth wheels, but not to the tow vehicles for trailers.
For the real answer, seek the advice of a tax professional. However, I think the salesman is full of something...
__________________
Current RV Information: 2018 Forrest River Salem Hemisphere 282RK
Previous RVs: 2004 Fleetwood Bounder 32W; 1999 Four Winds Five Thousand 21RB; 1986 Allegro Bay 27'
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09-07-2020, 07:25 PM
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#3
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Member
Holiday Rambler Owners Club
Join Date: Mar 2016
Posts: 66
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Your BS detector is working. If you can itemize on Schedule A, or what ever form in use to deduct mortgage interest, you can. The MH/TT/5er is considered a 2nd home for the deduction. Does not matter new or used. (I am an enrolled agent, retired IRS).
__________________
Keep on Truckin (It's a 70s thing)
2022 HR Vacationer 35K (Ford)
2023 Jeep Wrangler (Toad)
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09-07-2020, 07:35 PM
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#4
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Senior Member
Fleetwood Owners Club Ford Super Duty Owner
Join Date: Jun 2012
Location: SoCal
Posts: 15,749
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New or used doesn't matter...
Salesman...
__________________
Vince and Susan
2011 Tiffin Phaeton 40QTH (Cummins ISC/Freightliner)
Flat towing a modified 2005 Jeep (Rubicon Wrangler)
Previously a 2002 Fleetwood Pace Arrow 37A and a 1995 Safari Trek 2830.
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09-07-2020, 07:37 PM
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#5
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Community Administrator
Pond Piggies Club LA Gulf Coast Campers Outdoors RV Owners Club Entegra Owners Club Skyline Owners Group
Join Date: Mar 2002
Posts: 40,721
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Never believe the salesperson. They don't know what they're talking about 101% of the time.
Lori-
__________________
Lori (& Dave, my spirit guide) - RV/MH Hall of Fame Lifetime Member | My iRV2 Photo Albums
2016 Phoenix Cruiser 2350S, 2018 Phaeton 40IH,2006 Bounder 36Z, 2004 Cougar 285EFS, 2000 Aerolite 25FBR
There is great need for a sarcasm font.
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09-07-2020, 07:51 PM
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#6
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Senior Member
Winnebago Owners Club
Join Date: Nov 2018
Location: Titusville, FL
Posts: 264
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So he sells you a rig with a 20 year note that you can deduct the interest on, but they won't service after 10 years and you'll be upside down when you walk out the door.
Deduction is nice -IF you can use it. Make a big down payment and a short term note, and at least you won't have to pay to get out of it later. (Cash is even better)
__________________
2015 Itasca Sunova 30A, Brazel Ultra RV Tune, Safe-T-Plus, Sumo Springs on front, CHF, Hellwig Endlinks, SuperSteer track (Panhard) bar, Roadmaster rear sway bar, Koni Shocks, 900 w. solar, Battle Born House batteries, Roadmaster Falcon 2, Ford Escape PHEV and DW.
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09-07-2020, 08:55 PM
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#7
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Moderator Emeritus
Monaco Owners Club Texas Boomers Club
Join Date: Nov 2015
Location: Central Texas
Posts: 13,426
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Yeah, used or new doesn't make a difference, it's still deductible.
__________________
Dennis and Katherine
2000 Monaco Dynasty
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09-07-2020, 09:05 PM
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#8
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Senior Member
Join Date: Jun 2014
Location: Oregon
Posts: 1,052
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In order to deduct 2nd home (or RV) interest you MUST file schedule A and itemize your deductions. A few years ago with some tax changes it became less advantageous to do this and roughly 90% of people currently DON'T itemize. I'm not sure what the previous mark was but I think it was a lot higher.
Here's some info: https://www.investopedia.com/terms/s/schedulea.asp
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09-07-2020, 09:22 PM
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#9
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Senior Member
Join Date: Jul 2003
Posts: 4,455
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He may have been making the distinction between a secured loan versus a personal loan. Sometimes, secured loans on a used RV are more difficult to find a lender and must be done through a personal loan. A personal loan is not deductible where a secured loan would be. If the dealership is arranging financing, it will definitely be a secured loan.
But I'm just guessing that he may have been making that distinction. I'm with others who are offering that the vast majority of salesman will be feeding you BS of some type.
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09-07-2020, 09:25 PM
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#10
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Senior Member
Join Date: May 2006
Location: SoCal
Posts: 1,123
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I think the only stipulation is you need to spend a minimum of 21 days a year in it.
__________________
2020 Grand Design Reflection 315RLTS
2019 GMC Sierra Denali Duramax
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09-07-2020, 10:04 PM
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#11
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Senior Member
Join Date: Aug 2001
Location: North America somewhere
Posts: 30,897
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Quote:
Originally Posted by mtofell
In order to deduct 2nd home (or RV) interest you MUST file schedule A and itemize your deductions. A few years ago with some tax changes it became less advantageous to do this and roughly 90% of people currently DON'T itemize. I'm not sure what the previous mark was but I think it was a lot higher.
Here's some info: https://www.investopedia.com/terms/s/schedulea.asp
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YUp, It's almost impossible if you have health insurance or major expenses, as that is the biggest item to qualify you for itemizing your federal taxes. If you don't itemize your federal you can't itemize state taxes either where I live.
__________________
2000 Winnebago Ultimate Freedom USQ40JD , ISC 8.3 Cummins 350, Spartan MM Chassis. USA IN 1SG 11B5MX,Infantry retired;Good Sam Life member,FMCA. " My fellow Americans, ask not what your country can do for you, ask what you can do for your country. John F. Kennedy
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09-08-2020, 07:54 AM
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#12
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Senior Member
Join Date: Aug 2016
Location: Payson, AZ
Posts: 1,281
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it's been stated several times already. but this statement is true only if you itemize your deductions! if you take the newly increased standard deduction then this is not even a factor. new or used is not a factor.
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09-08-2020, 10:00 AM
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#13
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Senior Member
Join Date: Jul 2016
Posts: 152
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As for the IRS, as long as it has a Kitchen, Bath, and Sleeping area the interest is deductible no matter if new or used.
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09-08-2020, 10:11 AM
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#14
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Senior Member
Country Coach Owners Club Solo Rvers Club iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 37,725
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Quote:
Originally Posted by Redapple
I think the only stipulation is you need to spend a minimum of 21 days a year in it.
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That is not a requirement. It does have to have a kitchen, bath and sleeping space as stated above.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft, HWH Active Air
Charter Good Sam Lifetime Member, FMCA,
RV'ing since 1957, NRA Benefactor Life, towing '21 Jeep JLU Rubicon Ecodiesel
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