Forum Discussion
Effy
Oct 15, 2014Explorer II
I know for me personally due to particulars about residency, time in state, etc, this wouldn't work for me. For some maybe. But there is a fine line between leveraging a tax benefit the way it's designed ( I would call it a loophole that seems to be getting more narrow) and those that use a MT LLC to evade taxes by illegal means. Let's face it the goal is the same. For some it makes sense and can be done legally and others not. Some try to do it illegally and get caught, some don't. No one is arguing it's legality if you follow the laws in your own state, but let's be honest, it's avoiding the taxes that are often rightfully due. Legal in some cases? Yes. I think the intent would be for full timers. I really doubt the intent of such a setup is to avoid paying taxes in your true home state. That is where the moral argument comes into play. Might be legal, but if you truly live in one state and claim to live in another by registering a MH in a state you don't really live in, it's lying. Might be legal by virtue of this loophole, but it's lying all the same. Didn't buy it there, you don't do business there, you don't live there, yet you register your MH there. Why?, if for no other reason than to evade taxes in the state in which you truly live in. Similar scenarios used to be popular for Cayman and Swiss accounts too. They caught on and they are catching on to this. I feel as I am sure many others do, that if I really live in a particular state, that I should register my vehicles there.
And comparing to a mortgage or interest deduction that applies to literally everyone is apples to oranges. You don't need to lie about where you live to do that.
And comparing to a mortgage or interest deduction that applies to literally everyone is apples to oranges. You don't need to lie about where you live to do that.
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