Its tax time again and we all have that lingering question… Is it deductible?
Surprisingly, RV’s can be considered a second home and therefore are tax deductible.
We recommend you consult a tax expert before making any tax decisions.
Does your RV qualify to be tax deductible?
An RV or mobile home loan is considered to be tax deductible as a second home if it meets three basic requirements.
-Does it have sleeping facilities?
-Does it have cooking facilities?
-Does it have toilet facilities?
According to the IRS…
“A second home can include any other residence you own and choose to treat as a second home. You don’t have to use the home during the year. However, if you rent it to others, you must also use it as a home during the year for more than the greater of 14 days or 10 percent of the number of days you rent it, for the interest to qualify as qualified residence interest.”
“Qualified mortgage interest includes interest and points you pay on a loan secured by your main home or a second home. Your main home is where you live most of the time, such as a house, cooperative apartment, condominium, mobile home, house trailer, or houseboat. It must have sleeping, cooking, and toilet facilities. You can also treat amounts you paid during 2016 for qualified mortgage insurance as home mortgage interest. The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006.”
Written by: Robert Norman