RV interest deduction
So, when we had a travel trailer we would get from that lender a form about interest paid in the previous year. Like clockwork. When we purchased our motorhome last year, we ended up with the lend...
Forum Discussion
westernrvparkowner wrote:
... If the loan to purchase the RV is not secured by the RV (i.e. used a credit card, a personal loan etc.), any interest will not be deductible...
My understanding is the loan doesn’t have to be secured by the RV. If there is clear and direct line between the non-real estate/non RV secured loan and the use of those funds, then interest on those funds may be deductible via interest tracing rules.
I know this applies to use of funds for a business expense (e.g. Schedule E activity); I’m guessing the same concept applies to an RV/ 2’d home purchase. It wouldn’t work for a credit card (multiple uses of the funds), but should work for a personal loan or securities backed LOC where you directly use the funds for the RV purchase and nothing else.
