Community Forums

Crabby Mike · 10-03-2010, 09:28 PM

Quote:

Originally Posted by Redapple

Very legal. I deduct my MH and second home. every little bit helps.

Bill

The IRS instructions state clearly that you can deduct interest payments for only one main home and one second home at a time. If you treat your RV as a second home, that's it -- you can't claim a main home, a second home, AND an RV.

RickO · 10-03-2010, 09:31 PM

Quote:

Originally Posted by Crabby Mike

The IRS instructions state clearly that you can deduct interest payments for only one main home and one second home at a time. If you treat your RV as a second home, that's it -- you can't claim a main home, a second home, AND an RV.

I think we're all saying the same thing. In your scenario, the MH would be a THIRD home, wouldn't it?

Rick

JC2 · 10-03-2010, 09:38 PM

Here is an extensive link on this matter from another website.
RV.Net Open Roads Forum: IRS slams me with payment & interest penalty

RickO · 10-03-2010, 09:53 PM

JC2... thanks. That's a great thread with lots of useful information. It refutes the belief about having to live in a 2nd home at least 6 mos out of the year... which would kind of make it your primary home wouldn't it?... and the lack of a need for a 1098.

Rick

Snowman 1 · 10-04-2010, 08:59 PM

Quote:

Originally Posted by Izzyblueye

I have been told by my accountant that in the State of Ohio one cannot deduct the motorhome on your taxes or claim it as a second home unless you can prove it is used as a home for a great per cent of the year or it is used in the due course of a business expense.. Interest charges, yes, one can.

Time to find a different accountant...

RickO · 10-04-2010, 10:31 PM

I really think we're all kind of saying the same thing but mixing apples and oranges. Yes, if you have a self contained motorhome which is financed on a note which is secured solely by that motorhome... you may deduct the interest on that note (whether or not you received a 1098) on your federal tax return if you file long form.

That is MUCH different than "deducting the cost of your motorhome from your taxes". As with any first OR second home, you can only deduct the interest... and probably property taxes... that you pay to maintain that home. It just seems to be the same thing to me.

State laws vary all over the map I'm sure but at least to me the federal rules are pretty clear.

Rick

Rom · 10-04-2010, 10:52 PM

In conjunction with this topic, ensure that if you are including the interest in your itemized deductions that you have either a 1098 or a note from the financial institution holding the title of the collateral (RV/MH). Just received a notice from the IRS that I owe them money since they did not have any 1098 from the bank that financed my MH. Reviewing my Income Tax Returns for that year revealed that there was a statement in the note (vice a 1098) from the bank that states they (bank) are not forwarding any more copies to the IRS. Just mailed the IRS a copy and a statement explaining the unmatched deduction. And I hope they'll send me an acknowledgement that they have corrected the discrepancy.

RickO · 10-04-2010, 11:08 PM

Quote:

Originally Posted by Rom

In conjunction with this topic, ensure that if you are including the interest in your itemized deductions that you have either a 1098 or a note from the financial institution holding the title of the collateral (RV/MH). Just received a notice from the IRS that I owe them money since they did not have any 1098 from the bank that financed my MH. Reviewing my Income Tax Returns for that year revealed that there was a statement in the note (vice a 1098) from the bank that states they (bank) are not forwarding any more copies to the IRS. Just mailed the IRS a copy and a statement explaining the unmatched deduction. And I hope they'll send me an acknowledgement that they have corrected the discrepancy.

I got the same IRS notice two years ago. I sent them a copy of the year end loan statement from my bank along with a copy of the coach registration (or purchase docs, I don't recall since my tax advisor pulled it together) and got word back from them that they were happy.

Rick

Izzyblueye · 10-05-2010, 07:06 AM

RICK O: Your understanding of what my comment was about is right on. I didn't expect it to be so difficult to understand. Mentioning Ohio was simply geographic foot note. Thanks for clarifying the remark.

saddlecreek · 10-05-2010, 10:49 AM

I guess I opened a can of worms. Neverthless I now have a clear understanding. All I need is documentation from my bank regarding the interest I paid during the year and thats what I need to file.
Thanks everyone for all the good info.

UFO Pilot · 10-05-2010, 12:54 PM

Quote:

Originally Posted by Rom

In conjunction with this topic, ensure that if you are including the interest in your itemized deductions that you have either a 1098 or a note from the financial institution holding the title of the collateral (RV/MH). Just received a notice from the IRS that I owe them money since they did not have any 1098 from the bank that financed my MH. Reviewing my Income Tax Returns for that year revealed that there was a statement in the note (vice a 1098) from the bank that states they (bank) are not forwarding any more copies to the IRS. Just mailed the IRS a copy and a statement explaining the unmatched deduction. And I hope they'll send me an acknowledgement that they have corrected the discrepancy.

Ditto for me, just received the same notice from the IRS for tax year 2008. US Bank doesn't send a statement or 1098 for the interest paid. I call them each year and get the interest paid from them. The IRS is now matching your returns with the info sent by the banks and mortgage companies. I called US Bank and requested something in writing which I forwarded to the IRS.

JMonroe · 10-05-2010, 04:37 PM

It is absolutly deductible (interest paid, for federal tax return, and in many states). We had a go-around with the IRS this year as the bank didn't show the loan we claimed as a 'mortgage'. It took a couple trys, but once I actually spoke to an IRS rep, and explained that it was not a home mortgage, but an RV loan, she cleared our account on my word only and allowed the deduction.

You do have to clearly list it as an RV loan on your tax forms to avoid a 'friendly' note like we got this year. Unlike a home mortgage, we learned that a bank is not required to send anything to the IRS to confirm an RV loan, you have to be sure to identify it on your return.

PlayItForwrd · 10-08-2010, 11:18 PM

Anything with a place to sleep, a stove of some kind, and a "permanent" toilet, counts as a "second home". This can be a boat, camper, RV, a tree house, it doesn't matter. If you financed it, the interest is deductible.

As for sales tax being deductible-- With the exception of your federal income tax, ALL taxes you pay are deductible. Including your state income tax (from the previous year). Do you smoke 2 packs of cigarettes a day that are taxed at $1.00 per pack? keep your receipts, that's another $730 tax deduction...

Crabby Mike · 10-10-2010, 08:54 AM

Quote:

Originally Posted by PlayItForwrd

Anything with a place to sleep, a stove of some kind, and a "permanent" toilet, counts as a "second home". This can be a boat, camper, RV, a tree house, it doesn't matter. If you financed it, the interest is deductible.

As for sales tax being deductible-- With the exception of your federal income tax, ALL taxes you pay are deductible. Including your state income tax (from the previous year). Do you smoke 2 packs of cigarettes a day that are taxed at $1.00 per pack? keep your receipts, that's another $730 tax deduction...

As to the first part, yes, but only a first and second home, no more than that. If you finance both a second house and an RV, you have to pick one to deduct, you can't use both.

On your second point, that hasn't been true for years. With the exception of the special break for buying a new car or RV in 2009, you can deduct either state income taxes or sales taxes, not both.