Gdetrailer wrote:
elwood58 wrote:
Whatever you decide, if you are not already writing off a second home, the RV interest is deductible so long as it has a galley and bathroom.
Meh.
In reality, the interest deduction on a $23K loan for 12 yrs is peanuts.
You are talking a mere $1,083.33 reduction in your tax liability per yr average ($13K interest paid for the life of the loan) keeping in mind I have simplified it for explanation.
What does that mean to you?
if you have say $50K of income it reduces it by $1K or now your income looks like $49K..
You might overall see a few dollars less in your taxes once you run all the numbers.
Not going to even see that blip on the radar.
Now a $100K-$200K motorhome, you most likely will see some tax benefits but that isn't the reason you bought it.
Keeping in mind I have simplified things to illustrate, in reality the first 2/3 of the loan you are paying more interest on the loan than you are paying down the Principle (what you borrowed). So the first 2/3 of the loan you could see some tax liability reduction and the last 1/3 you will see nearly nothing.
Amortization calculators are your friend and will show just how much interest you will pay each month and how much you will pay towards the Principle borrowed per month.
You have to make sure you have enough other deductions to itemize. The standard deduction is so much now, most people can't. If you're discussing a 15 year note for 23K you likely are in the standard deduction category and wouldn't be able to write off a 2nd mortgage for an RV
