Passin Thru wrote:
You can make a regular payment on the 1st and half on the 15th and specify that all of the 15th will go to paying off the principle. However, you can write off the interest on an RV so what is the worry here?
Interest on $21K loan is $2K for the first year, that "write off" as you say for tax purposes only REDUCES your earned income for the FEDERAL income tax and only by that amount.
Does not apply to state, local town or even school taxes depending on where you live..
Not sure how this works now days but back when I had a mortgage and was paying $2K or less in interest it saved me less than $100 on the fed taxes (I got back less than $100 more than if I would not have claimed it)..
Additionally now days the standard deductions most likely will be greater than any supposed savings you might get with claiming a RV unless you have bunches of things to itemize..
In a nutshell, paying down the loan and reducing the interest paid in the long run is far better than worrying about any tax "write offs"..
Now if it was say a $100K or better motor home then the interest most likely could exceed the standard deduction but that is a guess..
Only a tax preparer can tell you for sure and the OP SHOULD be relying on a professional instead of web based hearsay..
