Community Forums

OlYeller · 02-23-2016, 06:48 PM

Quote:

Originally Posted by Fred and Bonnie

Mr. D what form are you referring to? Our tax preparer has always explained what the deduction is, without any problems. The loan is an installment loan, not a mortgage.

Fred

I had a loan through US Bank in the past. They never reported the interest I paid to the IRS so I never got a form reporting the interest charge from them either. Yes it is an installment loan, not a mortgage but the interest (in my case) was deductible. All it took was a phone call to US Bank and they told me ow much interest I paid which I deducted (with no issues) on my tax return.

DGBPokes · 02-23-2016, 07:01 PM

Essex....who is a division of Bank of the West. But 1/2% Better rate.

Have experienced not getting an interest paid form. Just reported it for what it was, never a problem.

KSagal · 02-23-2016, 07:17 PM

So... If I full time, and took a loan to get the MH, isn't the interest the same as a mortgage for tax reasons?

I am considering going full time, but own my old MH outright. If the interest was deductible, I might consider upgrading. Most likely not, but want to know what there is to know.

Nana25K · 02-23-2016, 08:35 PM

Quote:

Originally Posted by KSagal

So... If I full time, and took a loan to get the MH, isn't the interest the same as a mortgage for tax reasons?

I am considering going full time, but own my old MH outright. If the interest was deductible, I might consider upgrading. Most likely not, but want to know what there is to know.

Sorry but unfortunately the tax deduction, as I understand, is only if you own a home and the RV is deducted as a vacation home.

dbdreamers · 03-03-2016, 08:35 AM

Again, Thanks to all!

Got approval for the loan yesterday from our banker.
U.S. Bank. No problems, hitches, etc. Only thing
to mention is that I applied online to SouthEast Financial
and never heard back. Too bad. I was looking forward to
see what they could do.

We pick up the RV on March 17th. 80 days to retirement.
100 days to departure. The time is FLYING!!

SpaceNorman · 03-03-2016, 11:07 PM

Quote:

Originally Posted by Mr_D

Ours is through US Bank. Only "problem" we've had is they didn't issue a correct form for interest deduction on the MH, but I should have it this week.

The note on our coach is thru US Bank also. Because an RV loan isn't a real estate loan - it's not governed by the traditional mortgage interest statement reporting requirements. That said there isn't a "correct" form for interest deduction that you're likely used to seeing on your sticks and bricks. You should find that there is a paragraph on your monthly Loan statement in the month of January that tells you how much interest was paid on the loan during the previous calendar year. That's really all the documentation you need to substantiate your interest deduction.

Mr_D · 03-03-2016, 11:15 PM

Got the letter earlier this week from US Bank. With the last MH loan they just sent the correct form automatically.

Mr_D · 03-03-2016, 11:24 PM

Quote:

Originally Posted by Nana25K

Sorry but unfortunately the tax deduction, as I understand, is only if you own a home and the RV is deducted as a vacation home.

Nope, if you're living in the RV full time it's deductible just like a sticks and bricks.
If your sticks and bricks home is paid off you can still deduct the MH interest.

SpaceNorman · 03-03-2016, 11:33 PM

Quote:

Originally Posted by KSagal

So... If I full time, and took a loan to get the MH, isn't the interest the same as a mortgage for tax reasons?

I am considering going full time, but own my old MH outright. If the interest was deductible, I might consider upgrading. Most likely not, but want to know what there is to know.

Read IRS Publication 936 (2015) to determine if the interest on your motor home will be a qualified deduction. There's a handy link within IRS Publication itself to a decision chart that I found pretty handy in figuring out whether I was qualified to take the deduction.

The way it reads to me ... as long as your motor home has cooking, sleeping and bathroom facilities and is itself being used as collateral as part of your loan agreement - it can be considered a "qualified home" for tax purposes.

If you only have 2 home loans (i.e., a mortgage on your "sticks and bricks" and an RV loan for your motor home) .... AND the total balance of your combined mortgages are less than $1,000,000 (of $500,000 if you're married filing separately) ... AND the motor home is not something that you rent out. ... the interest on your motor home qualifies as being fully deductible.