RV Loan Interest Deduction yes or no?

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.

As long as that deduction is not cut out with the new tax overhaul. Not saying it will be, but be aware.

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.

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

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..

Yes to both questions. We've been doing it for 14 years.

But that might be changing with the new tax law, nobody knows. One thing I can tell you for sure, and this is not getting political, they're doing the same thing they did under the big tax overhaul in 1986 under Reagan. Sure, we got a big tax cut, but a lot of stuff like virtually ALL interest, credit card or otherwise, was no longer deductible. Don't yet know if the new law will help me or not.

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.
:(

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

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

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.

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.)

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.