IRS and the Interest Deduction
Anybody else having issues with the IRS on the mortgage interest deduction for the motorhome as a second home? My motorhome is financed through Wells Fargo Bank. For the entire life of the loan they...
Forum Discussion
Banks can not send out a 1098 on an RV loan. The 1098 is only for real estate loans and an RV is considered to be personal property. Granted it is personal property that qualifies as a second home which allows the interest to be deducted.
You will avoid issues with the IRS by just reporting the interest on the proper line with the indication of the name of the lender and the fact that it is an RV loan. Do NOT put the interest on the home mortgage line. That line is cross referenced with the form 1098's that banks send out and they do NOT send out 1098's on RV's. Proper line means no notices from our friendly IRS. Wrong line means you'll be writing letters and making phone calls.
You will avoid issues with the IRS by just reporting the interest on the proper line with the indication of the name of the lender and the fact that it is an RV loan. Do NOT put the interest on the home mortgage line. That line is cross referenced with the form 1098's that banks send out and they do NOT send out 1098's on RV's. Proper line means no notices from our friendly IRS. Wrong line means you'll be writing letters and making phone calls.
