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

Lynnmor
Explorer
Dec 22, 2017
Copperhead wrote:

But it is fact that the daily per diem allowance deduction for transportation workers is going away. That equates to roughly $14K a year in lost deductions right out of the gate on just that one item. And it is fact that all current deductions for state and local income taxes will not longer be allowed. Those two alone match or exceed the standard deduction for many people of the $24K for married couple. For a single person, just the loss of the meal deduction is larger than the $12K standard deduction.

Sounds good to me.

Hopefully some day we can eliminate interest and tax deductions altogether. I can't understand why someone buying over-priced homes and RVs should have less of an obligation than others.
Copperhead
Explorer
Dec 22, 2017
You say it sounds good that all of the drivers who spend days away from home and their families to bring you everything you need, that they no longer get a deduction for living expenses on the road? That is sure what it seems like you were saying in that post. If so, really not surprising.
troubledwaters
Explorer III
Dec 22, 2017
From what I read on the issue, your getting paid a $63 per diem rate and not paying taxes on it. Now your going to be paying taxes on it. So the real question is, should that $14,000 be considered income or not. I have company paid life insurance at work, I pay income tax on that benefit.
Bumpyroad
Explorer
Dec 22, 2017
troubledwaters wrote:
From what I read on the issue, your getting paid a $63 per diem rate and not paying taxes on it. Now your going to be paying taxes on it. So the real question is, should that $14,000 be considered income or not. I have company paid life insurance at work, I pay income tax on that benefit.

when I used to travel on perdiem, I figured that If I was at home, I would be spending something on food anyhow so I spent that $13 per diem wisely, for meals, lodging, and misc. :)
bumpy
valhalla360
Navigator
Dec 27, 2017
Bumpyroad wrote:
Copperhead wrote:

Not so sure that folks were concerned about the deduction in that way. Some just like any way to reduce their tax burden as they can. It really doesn't make a lot of sense to spend $1 just to save 25 cents in taxes. .

yep, I used to work with a couple of folks who also got their realty license and the usual statement was if you don't buy you miss the deduction. It never made sense to me to spend $1 to save 20 cents either.
bumpy

When you account for the standard deduction, getting 20c on the dollar is spectacularly good for anyone making less than $150k/yr.
valhalla360
Navigator
Dec 27, 2017
Copperhead wrote:
You say it sounds good that all of the drivers who spend days away from home and their families to bring you everything you need, that they no longer get a deduction for living expenses on the road? That is sure what it seems like you were saying in that post. If so, really not surprising.

If you want to stay home, get a job that keeps you at home or get the company to pay you enough to justify being on the road.

No reason for the taxpayer to cover part of your dinner.

If you refuse to do the job without the tax deduction, someone else will or the market will increase the pay until someone is willing.
jplante4
Explorer II
Dec 27, 2017
Lynnmor wrote:
Hopefully some day we can eliminate interest and tax deductions altogether. I can't understand why someone buying over-priced homes and RVs should have less of an obligation than others.

Exactly. Flat tax at 11% across the board. No brackets, no deductions. 3% national sales tax on everything except food and clothing. We'll be out of the red in a decade.
Copperhead
Explorer
Dec 27, 2017
I would have no problem with a only a flat or consumption tax. But only if the 16th Amendment is repealed.
valhalla360
Navigator
Dec 28, 2017
Copperhead wrote:
I would have no problem with a only a flat or consumption tax. But only if the 16th Amendment is repealed.

Agreed, but that's the catch with a VAT/Sales tax. It makes so much sense but if they don't permanently eliminate the income tax, it will just be an extra tax not a replacement.
DSDP_Don
Explorer
Dec 31, 2017
Here is something to play with.....

Tax Calculator

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