RV Loan Interest Deduction yes or no?

Ron3rd wrote:

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.

Thing is, corporations never have paid any tax. It was those that did business with them. My company, for instance, all taxes owed by me to the gooberment is passed on to those that pay for my services.

So, while it may seem like a corporate tax cut, it is actually a tax cut for everyone. That is less tax that the consumer has included in the price of goods or services. All the corporate tax thing really is all about is a bait and switch thing for government to get more money from the individual citizens without them thinking they are getting taxed and then gin them up with nonsense that these corporations need to pay more and drive corporate taxes up, in which case those corporations just raise the cost of goods or services to cover that and it is the consumer that gets hosed. And politicians just laugh about how stupid the average citizen is at this game, when they get together at fund raisers and social gatherings.

Copperhead wrote:

Thing is, corporations never have paid any tax. It was those that did business with them. My company, for instance, all taxes owed by me to the gooberment is passed on to those that pay for my services.
.

so true.
bumpy

Don't know why nobody has read the actual wording of the bill. Here it is:

"The conference agreement provides that, in the case of taxable years beginning after
December 31, 2017, and beginning before January 1, 2026, a taxpayer may treat no more than
$750,000 as acquisition indebtedness ($375,000 in the case of married taxpayers filing
separately). In the case of acquisition indebtedness incurred before December 15, 2017162 this
limitation is $1,000,000 ($500,000 in the case of married taxpayers filing separately).163 For
taxable years beginning after December 31, 2025, a taxpayer may treat up to $1,000,000
($500,000 in the case of married taxpayers filing separately) of indebtedness as acquisition
indebtedness, regardless of when the indebtedness was incurred.

Additionally, the conference agreement suspends the deduction for interest on home
equity indebtedness. Thus, for taxable years beginning after December 31, 2017, a taxpayer may
not claim a deduction for interest on home equity indebtedness. The suspension ends for taxable
years beginning after December 31, 2025.

Effective date.?The provision is effective for taxable years beginning after December 31,
2017."

These are the changes from what we have now. True - The House of Representatives' version did get rid of the second home interest deduction, but not the Senate's version. And the final bill is what was agreed between them - what is stipulated above.

(Yes, I've read the entire 1097 page bill... Just kidding!)

tax laws are changing, And this is one of the areas impacted big time as I recall from reading about the new tax laws More than that I can not say as I do not wish to give bad information.

New limits on value of mortgage deductions total is 750,000.00. Right now it is 1,100,000.00, I think.
So the Big Prevosts and others will see a lot less interest deduction on new purchases or on home and RV together.
Current assets Grand fathered.
Someone confirm this. I haven't finished my first cup of coffee.

pasusan wrote:
Don't know why nobody has read the actual wording of the bill. Here it is:

"The conference agreement provides that, in the case of taxable years beginning after
December 31, 2017, and beginning before January 1, 2026, a taxpayer may treat no more than
$750,000 as acquisition indebtedness ($375,000 in the case of married taxpayers filing
separately). In the case of acquisition indebtedness incurred before December 15, 2017162 this
limitation is $1,000,000 ($500,000 in the case of married taxpayers filing separately).163 For
taxable years beginning after December 31, 2025, a taxpayer may treat up to $1,000,000
($500,000 in the case of married taxpayers filing separately) of indebtedness as acquisition
indebtedness, regardless of when the indebtedness was incurred.

Additionally, the conference agreement suspends the deduction for interest on home
equity indebtedness. Thus, for taxable years beginning after December 31, 2017, a taxpayer may
not claim a deduction for interest on home equity indebtedness. The suspension ends for taxable
years beginning after December 31, 2025.

Effective date.?The provision is effective for taxable years beginning after December 31,
2017."

These are the changes from what we have now. True - The House of Representatives' version did get rid of the second home interest deduction, but not the Senate's version. And the final bill is what was agreed between them - what is stipulated above.

(Yes, I've read the entire 1097 page bill... Just kidding!)

Man, it's clear as mud.

Reality is there will be interpretations from the IRS that really set the rules and even those will get judicial review when people disagree. The law (pretty much most not just this particular one) do not provide for every detail and possibility, so they get interpreted.

stickdog wrote:

troubledwaters wrote:
It's really pretty simple: interest on a maximum of $750,000 of new acquisition debt. The old number was $1.1M of debt (which is grandfathered is that is where you are at now).

Source: TaxPolicyCenter.org

$1.1M just a little less than my lifetime earnings.
:(

$1.1M will buy a tiny old house in San Francisco.

In San Jose a nice older 3 bed 2 bath house is 800k.

A college degree in engineering can land you a first job that starts at $70K in Silicon Valley.

Welcome to California, Financing available.

The new law just passed. The max deductible on morgages drops from 1 Mill to 750K. Home Equity and RV loans are not changed and still deductible same as before.

If you need the deduction to be able to buy that RV, perhaps you should be looking at a less expensive RV???????????
bumpy

Bumpyroad wrote:
If you need the deduction to be able to buy that RV, perhaps you should be looking at a less expensive RV???????????
bumpy

As I read through the posts, I was thinking the exact same thing. If you can take a deduction, why not? But if you're depending on the deduction to afford your toy, then you're way overextended and meted to rethink your finances.