Tax Question for full timers

Effy wrote:
No one is "writing off a MH" as a second home. You might be able to claim the interest on the loan but no one is writing off the principal. Even if it's a business you still only get depreciation and maintenance. The reason you can claim the interest is that it's considered a second home if it has a bathroom and bedroom. But if you only have one home and the MH is it, then you don't have a second home. The MH is your primary.

This is only partially true. Do not take Effy's advice to heart, there is more to things than meets the eye. Maintenance may or may not be used, depending on the manner in which it is taken for a deduction. If you do take maintenance, you have to figure which percentage of the coach is used for the business and then take that percentage and use it for all expenses. Gas, maintenance, costs, depreciation. If you depreciate the coach, what type of depreciation are you using? Also, if you sell the coach, you are supposed to disclose that it has been depreciated. You also have to decide how you will do your taxes. Do you flow the business taxes through your income or have it separate? What is your tax year? What is the nature of the business. Bottom line is you can take whatever you want but will need to prove yourself in the event of an audit. Schedule C's are audited at a 3-1 rate over individuals.

As far as the "write off", I believe that is just a term that we all use for taking the interest on our taxes. The taxes paid and interest are all used to reduce tax liability and are usually very lucrative for a second home. I would recommend having at least a piece of property that you call "home" and use the coach as a second. As a primary residence you probably wont see a deduction in your liability.

If what I say seems a lot, talk to an accountant. They will confirm what I say.