Originally Posted by Gramhoney
Have heard both.....wonder if it depends on the state?
As long as the RV has a bathroom and a kitchen the interest you pay on it is deductible. It doesn't matter which state you are in, or considered to be a resident of, the deduction should stand on the federal return. The deductibility of mortgage interest on a state return depends on the laws of each state. I should add that you are limited to $1,000,000 of principal on the mortgage, but that restriction doesn't have any effect on most of us.
The deduction is still available in 2013 and has not yet been removed from the available deductions in 2014. There has been some discussion about dropping the mortgage interest deduction on second homes and some very limited discussion about dropping it on first homes. So far both deductions are safe for this year. I wouldn't expect the deductions to be gone this year as it is a Congressional election year so tax increases, even disguised ones, are a big no-no.