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Old 01-03-2021, 12:48 PM   #1
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Using your RV as a business expense

I'm seeking information about using an RV as a business expense.
If you travel via your RV and go to events like art shows, gun shows, flea markets, etc. as you sell your merchandise, are you able to claim your RV expenses on your federal taxes?

I believe if I keep a journal and document my expenses as I travel across the USA (and through Canada enroute to Alaska) from flea market to flea market (or from gun show to gun show) then I can claim those expense on my taxes.

Does anyone have any experience on this subject? Can you offer any advice? I've discussed this with my CPA, she's not sure if I can claim being a traveling salesman on my taxes. Do I need to form an LLC?

Any advice on this is greatly appreciated.
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Old 01-03-2021, 01:01 PM   #2
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Expense ?

I do.
I'm a manufacturers rep (sub "S") for 4 foundries and a machine shop.
Taking mileage in a diesel coach does not work, so I take actual fuel costs.
and "pre diem" on the number of days / nights out. It varies by location.
I also carry a lot of samples, so sometimes I invite my customers into my "show room" for coffee and technical discussions.
My CPA says it's fine.

Mike in Colorado
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Old 01-03-2021, 01:13 PM   #3
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We have a part-time business that requires I travel within 150 to 200 miles of our home base. I stay in one place for days or weeks at a time then on to the next town.
We claim all expenses related to the use of our motorhome while I'm using it for business. That includes fuel, maintenance, repairs and rv park fees.
Our accountant advised us that those are all valid claims.

I can't express enough how great it is to stay and work in our motorhome instead of a hotel room. All the comforts of home and way less driving to and from our home base. It's also much cheaper than staying in hotels.

Just a note: We are in Canada so perhaps these things work differently in the States.
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Old 01-03-2021, 01:50 PM   #4
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I can't advise you on this but our CPA use to be an auditor for the IRS.
He told me something I never forgot. "Be a PIG not a HOG".
Pigs get FAT but HOGS get slaughtered! I would get CPA who you trusted to KNOW the answers.
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Old 01-03-2021, 02:07 PM   #5
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Not to be flippant but I think you need a better accountant.

Pretty much all the deductions you could take as a traveling salesman operating with a van and staying in hotels would seem to apply; the questions would involve non-business use of the RV - are you staying extra nights, taking in tourist activities, etc? Do you stay in an RV park, campground or resort when you are not actively engaged in your job as a traveling salesman or do you return to a domicile?

Edit ps: back when we had fairs and festivals, vendors, crafters and concessionaires followed a circuit of events every season. You might inquire of others who have similar sales models and see how they handle expenses and deductions.
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Old 01-03-2021, 02:09 PM   #6
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Yes but can you purchase the RV or depreciate the RV cost as a part of the business? Not just the fuel, etc.?
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Old 01-03-2021, 02:24 PM   #7
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Didn't practice a lot of tax law, but some.

The tax laws relating to business expense actually do make sense. If you are incurring expenses that are truly (and demonstrably) for the purpose of earning income, you can generally deduct those expenses.

If you are looking to make your RV a deduction through the sleight-of-hand of calling it a business expense while mostly using it for fun, you'll have problems.

If you take such deductions on a business that usually loses money, you're going to get called on it. If your RV expenses are reasonable in relation to your PROFIT, you'll be okay. Remember, your claim is that you are offsetting hotel and restaurant expenses by using the RV. So, your claimed expenses can't be too much higher than what those would have been.

Depreciation deduction on an expensive RV might be an issue for the same reason it gets tough to deduct $4000/night luxury hotels for business expense - that's not a reasonable expense against the dollars earned as profit. But if you're not buying luxury for yourself - if you're spending reasonable dollars - then it becomes much like buying a business truck. You have to spend $ to make $, and the tax code recognizes this.

I'll defer to a CPA-type as to the mechanics of your deduction, but if it's a reasonable expenditure of money in order to make a profit, it's allowed.
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Old 01-03-2021, 02:28 PM   #8
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I would defer to a travel tax pro such as https://traveltax.com/

But don't see why a RV can't be depreciated as a business expense much like a landscaper would depreciate their equipment.
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Old 01-03-2021, 02:45 PM   #9
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Originally Posted by RoadEyePie View Post
Yes but can you purchase the RV or depreciate the RV cost as a part of the business? Not just the fuel, etc.?
Businesses purchase assets that depreciate all the time. Every truck, delivery van, computer, fork lift... but those assets solely benefit the operation of business. If the RV is owned by the business and operated solely for the benefit of the business, the business can probably use scheduled depreciation based on age, and deduct actual operational, maintenance, and storage costs.

Personal use of the RV would complicate things. Full timing in it while operating the business only part time would muddy the waters. This is where an owner needs competent professional advice.

The specifics of how the OP set up his sale business (sole proprietor, LLC/Sub S, corporation) influences how to best structure the financial relationship between "owner of the RV" and "Willie Loman Sales Company". Again, competent professionals should be consulted.
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Old 01-03-2021, 04:02 PM   #10
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You can if you make money at the business, after 3 years of losses you will be scrutinized. But that holds true for all business deductions. I write off mine while doing business, and in fact bought it for business purposes. But document everything.
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Old 01-03-2021, 07:57 PM   #11
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No matter if you can write it all off, I'm not going back to work.
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Old 01-04-2021, 08:02 AM   #12
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Thank you all for your responses. My plan is to travel across the USA to attend events like gun shows, art fairs, etc. in various locations. Most of these events occur on weekends, so i figure why not use Monday to Friday to travel to the next event and attend it that weekend and set up my table to sell my items. Along the way I get to see rural America, visit friends and family, make purchases and sell my goods.
I remember a few years ago in Cave Creek, AZ there was a gentleman pulling a large trailer with his Class A DP. He was parked on the side of the road across from the Buffalo Chip Saloon and he was selling neon signs!!! It seems like a legitimate business and a fun way to see the USA!!!
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Old 01-04-2021, 08:10 AM   #13
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I think you should go easy on criticizing the CPA. If your desire to deduct is questionable, the CPA may be trying to let you down easy.

Offending customers who have a strong desire to disagree leads to lost customers.

Certainly that portion of all expenses including depreciation that is used to produce income is deductible in the US. Keep detailed usage and expense records/logs.

I wish you good luck and happy trails ahead!
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Old 01-04-2021, 08:28 AM   #14
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It would be an audit red flag. But if you don’t care about that then OK.

As for business purchasing and depreciation... that would face much scrutiny just like the business purchase of a yacht, or a Ski condo in Aspen. The IRS has seen it all and it’s super easy to single out the folks gaming the system this blatantly.

A full audit may cost you much more than the RV.

I owned two successful businesses for over 30-years (and sold them both, too) and my wife is a CPA but our tax guy was a former IRS Agent.
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