Hello all,I did some research and even read the actual text of the new tax law. Maybe I missed it but I have been unable to find a concise answer....So....Does anyone know if:1. IS Second home mortgage interest still deductible in general (I know that home equity loans are NOT)2. Do RVs still qualify as second homes?And...please no politics or discussion about if either of the above two items or the tax law in general is good, bad, or indifferent :) There are MANY other places for that debate...Just a simple question...Thanks..

There is no answer yet re the new tax law. The bill must actually be signed and the IRS will have to write implementation regulations. A process that will take at least 6 months. In the past, and for tax year 2017, the IRS has considered interest on an RV loan qualifies as a home interest deduction for full timers, and a vacation home interest deduction for non-full timers as long as the other requirements are met. It can be very difficult to impossible to get the form from the lender for your tax return, so be sure that you have the correct amount when you file. Unless specifically mentioned in the new law, I would not expect the deduction of proper RV interest to change. Be aware that the standard deduction will change significantly and one goal of the new law is to eliminate as many as 70%+ of current itemized deduction filers, moving them to the standard deduction.

If I understood correctly from CBS news last night, existing mortgage interest deductions are to be grandfathered in and the restrictions will apply to new mortgages. (That was a part of the compromise with the Senate version.)

No one can know, not even congress. After a bill is passed it goes to another department for implementation and the end result is sometimes completely different than congress intended.

from the "blurbs" I saw today on the Telly, unless you have a Prevost financed 100% you don't have much to worry about. bumpy

It's really pretty simple: interest on a maximum of $750,000 of new acquisition debt is deductible if you don't take the Standard Deduction. The old number was $1.1M of debt (which is grandfathered if that is where you are at now). On first and second home (most RV qualify as second home - some don't, check the rules, they didn't change).Source: TaxPolicyCenter.org

RV Loan Interest Deduction yes or no? | Good Sam Community

drsteve
Explorer
Dec 20, 2017
goducks10 wrote:
I'm out shopping for a new RV. With the $4K they're saying I get cut from my taxes I can afford to upgrade.

They also say don't count your chickens before they're hatched. ;)
Hank_MI
Explorer
Dec 20, 2017
Won't make much difference to me either way. Our house is paid off and so is the MH. Of course the MH was purchased used and not worth a small fortune.
Ron3rd
Explorer III
Dec 20, 2017
drsteve wrote:
goducks10 wrote:
I'm out shopping for a new RV. With the $4K they're saying I get cut from my taxes I can afford to upgrade.

They also say don't count your chickens before they're hatched. ;)

X2, kinda difficult to quote you a specific tax savings since there is not a tax professional on the planet that knows the details of the proposed new tax law.
SidecarFlip
Explorer III
Dec 20, 2017
johnwalkerpa1 wrote:
Hello all,

I did some research and even read the actual text of the new tax law. Maybe I missed it but I have been unable to find a concise answer....So....Does anyone know if:

1. IS Second home mortgage interest still deductible in general (I know that home equity loans are NOT)
2. Do RVs still qualify as second homes?

And...please no politics or discussion about if either of the above two items or the tax law in general is good, bad, or indifferent :) There are MANY other places for that debate...

Just a simple question...Thanks..

Pretty simple. You primary dwelling is but a second home is not and RV might be considered a second home bit a second home is not (deductible so neither is the RV.
Thom02099
Explorer II
Dec 20, 2017
jesseannie wrote:
It will take awhile to sort out but I understood that the interest on 2nd homes was not going to deductible going forward. For tax year 2017 yes.

Jesseannie

^^^^ This.

Unless it got caught up in the myriad compromises and re-writes. My understanding from the news sources I watch, with the signing of the tax bill, this comes to an end in 2018 and beyond.

As it currently stands, as long as certain requirements are met for the living space, an MH/Trailer is considered a second home. Your lender, if they are efficient, should be providing an end of year statement of interest, or you should be able to go to their website and print one off.
wing_zealot
Explorer
Dec 21, 2017
SidecarFlip wrote:

Pretty simple. You primary dwelling is but a second home is not and RV might be considered a second home bit a second home is not (deductible so neither is the RV.
Beg to differ with you. Click link and scroll down to the very bottom of the page. Clicky
Ron3rd
Explorer III
Dec 21, 2017
SidecarFlip wrote:
johnwalkerpa1 wrote:
Hello all,

I did some research and even read the actual text of the new tax law. Maybe I missed it but I have been unable to find a concise answer....So....Does anyone know if:

1. IS Second home mortgage interest still deductible in general (I know that home equity loans are NOT)
2. Do RVs still qualify as second homes?

And...please no politics or discussion about if either of the above two items or the tax law in general is good, bad, or indifferent :) There are MANY other places for that debate...

Just a simple question...Thanks..

Pretty simple. You primary dwelling is but a second home is not and RV might be considered a second home bit a second home is not (deductible so neither is the RV.

That's not correct; the RV is considered a second home for tax purposes if it meets certain requirements, ie, must be self-contained and the INTEREST ON A LOAN on these types RVs is tax deductible. We've been taking the deduction for 14 years. However, if you do not have a loan, there is nothing to deduct.

To be clear, the only thing deductible is the interest on the loan. The loan itself is not deductible.

As mentioned above, it's an open question whether this deduction will still be available under the new tax law.
Ron3rd
Explorer III
Dec 21, 2017
Thom02099 wrote:
jesseannie wrote:
It will take awhile to sort out but I understood that the interest on 2nd homes was not going to deductible going forward. For tax year 2017 yes.

Jesseannie

^^^^ This.

Unless it got caught up in the myriad compromises and re-writes. My understanding from the news sources I watch, with the signing of the tax bill, this comes to an end in 2018 and beyond.

As it currently stands, as long as certain requirements are met for the living space, an MH/Trailer is considered a second home. Your lender, if they are efficient, should be providing an end of year statement of interest, or you should be able to go to their website and print one off.

You could very well be correct; To pay for the huge corporate tax cut, other deductions that were once available to you and me will probably be eliminated.
2oldman
Explorer II
Dec 21, 2017
Ron3rd wrote:
As mentioned above, it's an open question whether this deduction will still be available under the new tax law.
With the increase in the standard deduction, it may be moot.
johnwalkerpa1
Explorer
Dec 21, 2017
Thanks to those of you who stayed on topic :)

Yes, I'm aware of how things have worked in the past as I've been deducting the RV interest for 4 years. It's not going to impact me much either way since I only have 6 months left until the loan is paid off. It was more a curiosity.

Moderator....feel free to close this thread if you wish....I don't think there is much more to discuss and the politics are starting to creep in.. Thanks!