Home deduction.

down home wrote:
Last year may be the last year we can claim the interest deduction on homes and RVs. I haven't heard it being reinstated.
But... Last year as years before we spent a substantial bit of money on being stored inside and cared for.
Does anyone include ,that, in there expenses or deductions.

There has been NO proposed legislation to eliminate the home interest deduction for either a first or second home. The only major change to anything that would have any effect on RV ownership is that the sales tax deduction expired with 2013. As of 2014 you can no longer deduct the sales taxes paid in lieu of the deduction for state income taxes.

Effy wrote:
Owning an RV business I asked my accountant if I could build a structure to house my RV's, for various legitimate reasons and either write it off as an expense or lease the property from myself to My LLC. The answer in both cases was no. Since I own the real estate where I would house the RVs, it's essentially taking money from one of my hands and putting it in another. The LLC's storage area would inflate the value of my personal real estate and therby can't be done. I would essentially be paying my LLC to build a structure to add appreciation to my personal asset. Now if I wanted to lease space from a totally seperate entity I could write off the lease space. But it can't be on or appreciate a property I own.

Owning an RV either personally or via a business, the interest can be claimed. I haven't heard otherwise. Owning under an LLC does allow you to claim maintenance, equipment, repiars and depreciation but you better be legit.

I am not sure where your accountant is coming from, but wow, he or she is way off base. There is nothing that prohibits a business from constructing a building on the owner's property and then renting that building from the owner. It is not a case of moving money from one pocket to the other when you may be paying self employment taxes on the business income and rental income is not subject to self employment taxes. At 15.3%, that is a substantial reason to utilize rental income to reduce the SE tax burden.

Also owning an RV in an LLC does not in any way give someone the right or the reason to deduct any RV expenses for anything other than interest. Deductions related to RV ownership are limited to necessary business expenses and just having an LLC isn't even remotely creating a business. An LLC is not in and of itself a business. An LLC is an asset protection device to protect against lawsuits. Creating an LLC does NOT create a business.

wnytaxman wrote:

Effy wrote:
Owning an RV business I asked my accountant if I could build a structure to house my RV's, for various legitimate reasons and either write it off as an expense or lease the property from myself to My LLC. The answer in both cases was no. Since I own the real estate where I would house the RVs, it's essentially taking money from one of my hands and putting it in another. The LLC's storage area would inflate the value of my personal real estate and therby can't be done. I would essentially be paying my LLC to build a structure to add appreciation to my personal asset. Now if I wanted to lease space from a totally seperate entity I could write off the lease space. But it can't be on or appreciate a property I own.

Owning an RV either personally or via a business, the interest can be claimed. I haven't heard otherwise. Owning under an LLC does allow you to claim maintenance, equipment, repiars and depreciation but you better be legit.

I am not sure where your accountant is coming from, but wow, he or she is way off base. There is nothing that prohibits a business from constructing a building on the owner's property and then renting that building from the owner. It is not a case of moving money from one pocket to the other when you may be paying self employment taxes on the business income and rental income is not subject to self employment taxes. At 15.3%, that is a substantial reason to utilize rental income to reduce the SE tax burden.

Also owning an RV in an LLC does not in any way give someone the right or the reason to deduct any RV expenses for anything other than interest. Deductions related to RV ownership are limited to necessary business expenses and just having an LLC isn't even remotely creating a business. An LLC is not in and of itself a business. An LLC is an asset protection device to protect against lawsuits. Creating an LLC does NOT create a business.

Your response is somewhat helpful. Are you saying that I can build a building - pole barn whatever , on my own property for my RV rental business, and either A- lease it to my business, or B- write this off as a business expense? Doesn't seem feasible. And while you may be accurate that by simple proxy of an LLC does not deem the ability to claim expenses and depreciation, the nature of the business does. As a rentalbusiness I am entitled to as much as a 5 year table on all my units and all maintenenace and expenses to operate.

IMO. No, you cannot use rv storage as a deduction. My CPA said that is a no.

IRS Pub 936 PDF From the IRS.GOV site.

Contrary to what some others are saying, in accordance with the IRS Pub 936, claim interest as a second home. It does not have to be used as a business. I use a CPA as well, and he and his firm have confirmed this interpretation. First and second homes are fully deductible, after that there are more restrictions. Look at the "Qualified Home" section of IRS Pub 936.

Kiwi_too wrote:
IMO. No, you cannot use rv storage as a deduction. My CPA said that is a no.

IRS Pub 936 PDF From the IRS.GOV site.

Contrary to what some others are saying, in accordance with the IRS Pub 936, claim interest as a second home. It does not have to be used as a business. I use a CPA as well, and he and his firm have confirmed this interpretation. First and second homes are fully deductible, after that there are more restrictions. Look at the "Qualified Home" section of IRS Pub 936.

I think you got confused in all of the confusing posts previously. nobody said you couldn't deduct the interest on a second home. what was said was that it had to be a business to deduct other items, besides and in addition to interest.
bumpy

Effy,

You can put up a building on your own property and take it as an expense over the life of the building (39 years) and even lease the land under the building to your business. In your case you have legitimate business purpose so you can take the expense. If you have your rental business in a corporation then you would lease the building from yourself. If you are in an LLC or sole proprietorship then you would take the business expense of depreciation directly on your Schedule C. The only downside is that part of the sale proceeds of your principal residence will now be subject to tax, but my guess is that the current deduction is more important.

Ed

down home wrote:
Last year may be the last year we can claim the interest deduction on homes and RVs. I haven't heard it being reinstated.
But... Last year as years before we spent a substantial bit of money on being stored inside and cared for.
Does anyone include ,that, in there expenses or deductions.

Can you substantiate this from a reputable source or are you simply going by what your next door neighbor heard from his second counsin's BFF?

wnytaxman wrote:
Effy,

You can put up a building on your own property and take it as an expense over the life of the building (39 years) and even lease the land under the building to your business. In your case you have legitimate business purpose so you can take the expense. If you have your rental business in a corporation then you would lease the building from yourself. If you are in an LLC or sole proprietorship then you would take the business expense of depreciation directly on your Schedule C. The only downside is that part of the sale proceeds of your principal residence will now be subject to tax, but my guess is that the current deduction is more important.

Ed

Interesting I may hit you on PM..

cKarlGo wrote:

down home wrote:
Last year may be the last year we can claim the interest deduction on homes and RVs. I haven't heard it being reinstated.
But... Last year as years before we spent a substantial bit of money on being stored inside and cared for.
Does anyone include ,that, in there expenses or deductions.

Can you substantiate this from a reputable source or are you simply going by what your next door neighbor heard from his second counsin's BFF?

I'm a CPA and I teach taxation to other CPA's and there is NO such legislation pending or even being discussed. This is a Congressional election year so I would not expect any legislation that increases taxes this year.

Effy wrote:

wnytaxman wrote:
Effy,

You can put up a building on your own property and take it as an expense over the life of the building (39 years) and even lease the land under the building to your business. In your case you have legitimate business purpose so you can take the expense. If you have your rental business in a corporation then you would lease the building from yourself. If you are in an LLC or sole proprietorship then you would take the business expense of depreciation directly on your Schedule C. The only downside is that part of the sale proceeds of your principal residence will now be subject to tax, but my guess is that the current deduction is more important.

Ed

Interesting I may hit you on PM..

If you catch me between appointments I may be able to get back to you quickly. If not, it may take a few hours for me to free up.