Title an RV into deed to claim a mortgage interest deduction

[trx430ex]

It just came to me that we are spending as much on mobile living as most are on fixed living. That being said, then why is it that we should not also be included in the mortgage interest deduction in taxes, just like fixed assets?

I propose we get deeper into investigating and pushing for a deeded title for full time mobile rigs?

Depreciation between houses and RV's have different sliding scales,but I see no reason this agenda should not be pushed for that we have "0" deduction now, VS a fixed asset.

[RTompkins3]

JoeTampa wrote:
Are there any tax benefits of any kind if you own the RV outright?

Actually, when you do the math, The "home owners deduction" is against income and is not a tax credit for the amount of interest paid. Thus, you only get "back" a percentage of what you pay in interest. If you were not paying interest you would pay about 1/3 of the money you don't pay in interest as taxes (in Other words you have about 2/3 or the money that you would have spent on interest to spend on other things). Of course the actual percentage depends on your full marginal rate, but you don't get all of you're interest expenses back in your tax refund. For example, if you are paying $5000 in interest a year, you actually pay about $1600 less taxes. If you are paying no interest you will have an additional $3350 in disposable income to "play" with. Yes, you pay $1600 more taxes, but the net is more money to spend and you don't have the interest payments. The actual numbers may vary depending on your total taxable income, etc.
The Home owners interest deduction is good when you have to have the loan, but once the loan is gone you will have more money to spend even with the additional tax payment.
So, take advantage of the interest deduction if you have to have the loan, and enjoy the extra money when you pay it off 🙂

[rehoppe]

JoeTampa wrote:
Are there any tax benefits of any kind if you own the RV outright?

YES! You don't make payments anymore!!!!! LOL

It's a nicer position to be in, I think.

[Walaby]

JoeTampa wrote:
Are there any tax benefits of any kind if you own the RV outright?

Yes

You don't pay sales tax on hotel rooms....

Mike

[dons2346]

JoeTampa wrote:
Are there any tax benefits of any kind if you own the RV outright?

Nope

[JoeTampa]

Are there any tax benefits of any kind if you own the RV outright?

[wannavolunteerF]

From IRS publlication 936

For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

Second home. A second home is a home that you choose to treat as your second home.

Second home not rented out. If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You do not have to use the home during the year.

Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you do not use the home long enough, it is considered rental property and not a second home. For information on residential rental property, see Publication 527.


IRS specifically mentions RV and Boat. Also 14 day requirement only applies if you rent it out.

I just get an interest statement from bank and include that amount as Mortgage Interest that I do not receive a 1099 for... whichever line I don't know. I use H&R Block software... as it allows me to easily include some other deductions.

[Bumpyroad]

GoPackGo wrote:
I've been taking this deduction for many years with various campers and boats.

My rationale has always been that the IRS will expect to see the word 'permanent' before the words 'sleeping, cooking, and toilet facilities'.

then you would eliminate RVs where the dinette converts to a bed? and cassette toilets wouldn't qualify?
bumpy

[GoPackGo]

I've been taking this deduction for many years with various campers and boats.

My rationale has always been that the IRS will expect to see the word 'permanent' before the words 'sleeping, cooking, and toilet facilities'.

[Bumpyroad]

any pickup with a cap could qualify if you throw in an air mattress, hot plate, and portapot????????? Has anybody done this and been audited?
bumpy

[jorbill2or]

On mine I placed the interest on the "other" line and provide the "tin" tax ID number of the bank or loan receiver on the form as source
As others have said porta potty or bucket, hot plate and a bed are all that's needed .. No length of stay is required you must of course have enough other deductions to file long form schedule A

[GoPackGo]

b727capt wrote:
The rules for deducting mortgage interest on a second home are: Has to have a kitchen, bathroom and you have to spend 14 days in it. One additional limit, you can only deduct the mortgage interest (first and second combined) on up to 1,000,000 in mortgage balence.

This is not accurate. The 'second home' needs to have 3 things - sleeping, cooking, and toilet facilities. There is no requirement to spend 14 days in it. In addition to campers, boats can also qualify as a second home as long as they meet the criteria.

[Old-Biscuit]

OP wasn't aware RV Loan Interest was deductible and was looking to start a movement to make it so.

OP should now be aware that RV Loan Interest IS deductible

Whether or not OP has enough deductibles to 'itemize' is the question only OP cam answer.

[accsys]

lbrjet wrote:
The OP is using the mobile home/RV as a primary residence folks so all of these '2nd home' posts do not apply. No one addressed the question at hand. Don't think the interest can be put on schedule A.
You have to pay a lot of mortgage interest/real estate taxes/charitable giving these days to be even be able to write off your RV interest, like over a grand a month for a joint return. The tax benefit then applies to anything over that. Only one third of tax payers pay that much and actually use the Scedule A amount these days, vs the standard deduction.

You need to rethink that. Unless it is the third home, the interest is deductible. Yes, you must have enough interest and other items to use Schedule A. You might be surprised how many elderly, especially if they are single, have enough medical expenses, taxes, and charitable donations to itemize even without the interest so it can help them. Apparently the OP thought it would help him. At least that has been my experience doing tax returns professionally for almost 40 years.

[lbrjet]

The OP is using the mobile home/RV as a primary residence folks so all of these '2nd home' posts do not apply. No one addressed the question at hand. Don't think the interest can be put on schedule A.
You have to pay a lot of mortgage interest/real estate taxes/charitable giving these days to be even be able to write off your RV interest, like over a grand a month for a joint return. The tax benefit then applies to anything over that. Only one third of tax payers pay that much and actually use the Scedule A amount these days, vs the standard deduction.