Towable RV owners lose benefit with new tax bill

[Lac]

Found an interesting article on RV Travel related to our US neighbours Tax reform bill. Folks who own a towable...your out of luck for a tax deduction on loan interest. However people who finance motor homes you get the deduction.
Interesting!!

By Chuck Woodbury RV Travel

The recently passed tax reform bill will benefit the RV industry and further the industry’s current period of historic growth, according to the Recreational Vehicle Industry Association (RVIA).

But one thing it won’t do is help if buying a towable RV is in your plans, don’t count on taking a tax deduction on the loan interest. If you already own a towable RV and have been deducting the interest, contact your tax professional to learn how this applies to you. owners of towable RVs. For many years, owners of all types of self-contained RVs could deduct the interest on their RV loan as a second home. The new tax will allow a deduction of interest on mortgages up to $750,000, for purchases of first and second homes, which can include RVs, but only motorized ones.

The new law only allows deduction for “any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road,” which does not include towable RVs such as travel trailers and fifth wheels.

But, for now, if buying a towable RV is in your plans, don’t count on taking a tax deduction on the loan interest. If you already own a towable RV and have been deducting the interest, contact your tax professional to learn how this applies to you.

[dexters]

http://www.irv2.com/forums/f64/towab...on-372212.html

[V3600]

From https://www.factcheck.org/2017/12/guide-tax-changes/

"Mortgage Deductions

Previous law: Taxpayers who itemize their taxes can deduct interest payments on mortgage debt of up to $1.1 million. That includes up to $100,000 of home equity debt.

New law: For current mortgage holders, there is no change. But the deductible limit drops to $750,000 for new debt incurred after Dec. 31, 2017. Also, homeowners may not claim a deduction for existing and new interest on home equity debt, beginning Jan. 1, 2018. The mortgage deduction changes expire after 2025."

From RIVA: http://www.rvbusiness.com/2017/12/rv...t-rv-industry/

"The glitch in the floorplan interest financing deductibility was partly a result of the speed by which the bill was put together. The conferees modified the definition of motor vehicle under the floorplan indebtedness provisions by deleting the current specific references to “an automobile, a truck, a recreational vehicle, and a motorcycle” and substituting the phrase, “any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road,” without realizing that this would have the effect of removing travel trailers from the definition. RVIA will work with the House Ways and Means Committee and the Senate Finance Committee to include a change to the definition in a technical corrections bill which will likely be needed next year as other oversights and unintended consequences become known."

[Highway 4x4]

I have spoken with my tax man and he said I will pay less fed taxes under the new plan. But not to worry, the state of Cal is taking it back. Also, LA county has a sales tax of just under 10%. Cal is one of the highest taxed states for reasons we will not go into here.

[TrollMeister]

Originally Posted by Highway 4x4

I have spoken with my tax man and he said I will pay less fed taxes under the new plan. But not to worry, the state of Cal is taking it back. Also, LA county has a sales tax of just under 10%. Cal is one of the highest taxed states for reasons we will not go into here.

You're lucky, we will pay more to the Feds due to the elimination of the deductions including this trailer loan interest!

Law of unintended consequences!

[Randy the sly old fox]

I also heard that various parts of the bill were very badly worded - some changes were even on sticky notes. I also believe that the RVIA will insure that the language on the final bill will include towable RVs.

[Cumminsfan]

7 months and the house is paid off. RV loan has a low interest rate with a low payment. Not much interest generated anymore. Not going to worry about it.
Just trying to decide which new 5th wheel to get since Trump said I'd get a $4K raise with the huge tax cuts.
Maybe I can generate some more interest money.

[SoCalAngler]

Considering it's now the TAX season, anyone know what the final wording/outcome is on the new tax law, specifically the interest deduction on towables?

Thanks