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02-07-2018, 04:37 PM
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#43
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Senior Member
Entegra Owners Club Spartan Chassis
Join Date: Dec 2017
Posts: 107
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Quote:
Originally Posted by krudawg
I purchased my motorhome in early 2017. My tax person so I can't deduct the interest UNLESS my motorhome was financed as a mortgage and the Interest statement the bank sent out to me clearly states "MORTGAGE INTEREST". mine does not specifically say MORTGAGE Interest.
Anybody have suggestions about writing off the interest.
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That is wrong. Anything with a bath, kitchen and sleeping quarters, self contained can be classified as a second home. Get a new tax guy!
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02-08-2018, 10:31 AM
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#44
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Senior Member
Thor Owners Club
Join Date: Aug 2010
Location: Delaware
Posts: 614
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Quote:
Originally Posted by momdoc
We just met with our accountant last week and broached this question. Her response was as long as the amount borrowed is used to purchase the MH (for us it will be a line of credit) and you can show this then the interest paid is a deduction.
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In all of the back and forth discussion in this thread, I don't think anybody addressed this one. As I understand it, this kind of line-of-credit financing would NOT be deductible, since it's not secured by the RV. Your thoughts (wnytaxman especially)?
__________________
Crabby Mike
2024 Renegade Veracruz 30VRM
towing 2019 Jeep Wrangler Unlimited Sahara
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02-08-2018, 11:35 AM
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#45
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by Crabby Mike
In all of the back and forth discussion in this thread, I don't think anybody addressed this one. As I understand it, this kind of line-of-credit financing would NOT be deductible, since it's not secured by the RV. Your thoughts (wnytaxman especially)?
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The new tax law is eliminating the deduction for interest paid on home equity lines and home equity loans in 2018. Now, what we may hear, but we don't know for sure, is that there will be some sort of grandfathering based on when they got the home equity line. They did that with the million dollar limit so they MAY do that with the home equities. A lot of folks used the equity loans to pay for their kids college education so the loss of that interest could create a hardship for many.
For the OP. Sorry but I didn't comment on the fact that you purchased your rig in '17. Remember to check to see if the sales tax you paid exceeds your state income tax. If it does, then use the sales tax on the rig and the tax from the table instead of your state income tax. Also, if your unit has solar panels you will probably qualify for the solar tax credit. If you did get solar see if it's on your invoice. The credit is 30% of what the solar cost you. Depending on where you are, you may also be able to get a state credit for solar.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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02-08-2018, 03:16 PM
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#46
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Senior Member
Entegra Owners Club Spartan Chassis
Join Date: Feb 2010
Posts: 4,214
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Quote:
Originally Posted by wnytaxman
Also, if your unit has solar panels you will probably qualify for the solar tax credit. If you did get solar see if it's on your invoice. The credit is 30% of what the solar cost you. Depending on where you are, you may also be able to get a state credit for solar.
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Ed,
I hope you don't mind that I edited the quote of your response above to include bold letters for your reference to a tax credit for solar.
Just wanted to be sure that the OP, and others, recognize that as a credit, not merely a deduction.
Take care,
Stu
__________________
"I would rather have questions that can't be answered than answers that can't be questioned."
2018 Anthem 42DEQ
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02-08-2018, 03:23 PM
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#47
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Thanks Stu. Good idea to bold it because a lot of folks don't really understand the difference between a tax credit and a tax deduction. Let's hope this helps some of our fellow RVers same a few bucks.
__________________
2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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02-08-2018, 04:11 PM
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#48
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Senior Member
Monaco Owners Club National RV Owners Club Workhorse Chassis Owner
Join Date: Dec 2013
Location: St. Charles MO
Posts: 4,920
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Solar credit for an RV seems wrong. Solar on RV's to me is to help charge batteries and dry camp and doesn't really help the carbon footprint or reduce shore power electric use? Just asking.
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2002 Monaco Windsor 40PST 2019 Equinox 1.5L, Blue OX Aventa LX tow bar, Roadmaster EZ5 baseplate, SMI Stay-In-Play Duo, TireSafeGuard TPMS
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02-08-2018, 05:09 PM
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#49
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Member
Join Date: Jul 2016
Posts: 35
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Why not? You would have to run a generator to recharge the battery if you didn't use the solar panels.
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02-08-2018, 05:12 PM
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#50
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by tmw188
Solar credit for an RV seems wrong. Solar on RV's to me is to help charge batteries and dry camp and doesn't really help the carbon footprint or reduce shore power electric use? Just asking.
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I don't disagree with your comment but the reality is that when the law got passed probably no one really thought about RV's with solar panels. I'm no expert in that area so I really don't know if the solar panels on a rig help to reduce carbon emissions but it may help or it may not. Either way the credit is available.
__________________
2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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02-08-2018, 05:21 PM
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#51
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Senior Member
Entegra Owners Club Spartan Chassis
Join Date: Feb 2010
Posts: 4,214
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Quote:
Originally Posted by tmw188
Solar credit for an RV seems wrong.
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Although it may seem "wrong", the IRS Instructions for Form 5695 seem to suggest that it's allowed.
Here's a link to the publication: https://www.irs.gov/pub/irs-pdf/i5695.pdf
Here are a couple of pertinent quotes from the publication:
Who Can Take the Credit
You may be able to take the credit if you made energy saving
improvements to your home located in the United States in
2017.
Home. A home is where you lived in 2017 and can include a
house, houseboat, mobile home, cooperative apartment,
condominium, and a manufactured home that conforms to
Federal Manufactured Home Construction and Safety
Standards.
Qualified solar electric property costs. Qualified solar
electric property costs are costs for property that uses solar
energy to generate electricity for use in your home located in the
United States. No costs relating to a solar panel or other
property installed as a roof (or portion thereof) will fail to qualify
solely because the property constitutes a structural component
of the structure on which it is installed. The home doesn't have to
be your main home.
Just be sure to thank your fellow taxpayers who are subsidizing your lifestyle.
Take care,
Stu
__________________
"I would rather have questions that can't be answered than answers that can't be questioned."
2018 Anthem 42DEQ
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02-08-2018, 06:38 PM
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#52
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Member
Join Date: Mar 2017
Posts: 33
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Solar panels decrease the need to run the generator to charge batteries. Case closed.
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02-08-2018, 11:40 PM
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#53
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"Formerly Diplomat Don"
Newmar Owners Club
Join Date: Apr 2005
Location: Moorpark, Ca.
Posts: 23,922
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"wnytaxman"......I'm glad you straighten out the part about motorized vehicles. I think I actually read that in one of the FMCA magazines. My daughter just bought a new 5th wheel, they were a little concerned about losing the deduction.
__________________
Don & Mary
2019 Newmar Dutch Star 4018 (Freightliner)
2019 Ford Raptor
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02-09-2018, 06:44 AM
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#54
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by Dutch Star Don
"wnytaxman"......I'm glad you straighten out the part about motorized vehicles. I think I actually read that in one of the FMCA magazines. My daughter just bought a new 5th wheel, they were a little concerned about losing the deduction.
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Don, I think that the misconception on that deduction came from a rather obscure part of the law that pertains to dealers. Why that is in there is way beyond my pay grade. It makes no sense to me, but then again, as long as I have been doing this I can tell you that there is a ton of stuff in the tax code that doesn't make a lot of sense.
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2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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02-09-2018, 06:58 AM
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#55
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Senior Member
Join Date: Jul 2010
Posts: 5,314
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Quote:
Originally Posted by AudiDudi
Agree - why pay $10k in interest to get back $2500 on your taxes. Or even $39,600.
I guess one reason would be if the cash is earning a higher interest rate than your loan interest rate.(after taxes)
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On #1, same logic applies to donations to charity. Do people only give to charities when they can deduct the amount off their taxes? It seems they are still out the money just who gets it.
On #2, exactly why I decided to finance mine. Taking the $100,000 out of a growing investment account that is paying good dividends, earning more than the cost of the loan did not seem like a good deal.
I can deduct the cost of the interest off my taxes, the reduction doesn’t benefit that much especially with the increased std deduction.
__________________
Tom
2016 Newmar Bay Star Sport 3004
2021 Jeep Gladiator Sport Willys
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03-14-2018, 06:55 PM
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#56
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Senior Member
Join Date: Oct 2010
Location: Warren County, NJ
Posts: 1,354
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Quote:
Originally Posted by Dutch Star Don
Two things......there was some information that RV's would still be deductible in 2018, but the new tax law stated motorized. They said during reconciliation of the new law, they would push to correct that and remove the words motorized, otherwise, only motor homes would be deductible.
Second thing.....it's funny, the guy that tells everyone to save their money and pay cash, currently doesn't have an RV. Brilliant strategy!
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You are correct. At present we do not. I don’t mind taking a year off and pay with cash.
Proverbs 22:7 “The rich rule over the poor, and the borrower is slave to the lender.”
I do not worry about silly deductions. Never talked to anyone saying that they became wealthy by having deductions nor silly miles or points on their credit cards. Banks have people snowed.
Saving and paying everything in full has.
__________________
Gene & Ginger
2019 Chevy Express 3000 6.0L
2024 Grand Design Imagine 2600RB
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