IRS and the Interest Deduction
Anybody else having issues with the IRS on the mortgage interest deduction for the motorhome as a second home? My motorhome is financed through Wells Fargo Bank. For the entire life of the loan they...
Forum Discussion
Isn't Mortgage Interest Paid reported on Form 1098 (1099-Int is interest earned)??
When you filed Federal Return did you report the interest paid on line 10 or line 11 of Schedule A?
Should have been separate from home mortgage interest paid (line 10)
"Tax deductibility of interest on RV / Motorhome loans
Under IRC section 163 (h)(2) a taxpayer may deduct any qualified interest on a qualified residence, which is defined as a principal residence and one other residence owned by the taxpayer for the purpose of deductibility for the tax year. IRC section 163(h)(3) defines qualified residence interest as any interest which is paid or accrued during the tax year on acquisition or home equity indebtedness with respect to any qualified residence of the taxpayer.
In accordance with IRC section 163(h)(4), an RV will be considered a qualified residence if it is one of the two residences chosen by the taxpayer for purposes of deductibility in the tax year as long as it provides basic living accommodations such as sleeping space, a toilet, and cooking facilities. If the RV is chartered out, the taxpayer will have to use the RV for personal purposes for either more than 14 days or 10% of the number of days during the year the RV was actually rented, in accordance with IRC section 280A(d)(1).
Form 1098 is not necessary in order to receive the qualified interest deduction. In accordance with IRS instructions for Schedule A, form 1040, if the taxpayer does not receive form 1098, deductible mortgage interest should be reported in line 11 instead of line 10 on Schedule A."
Re-submit copy of Schedule A with explanation that home mortgage interest paid was XXXX and that the MH interest paid was XXX with copies of home mortgage interest and MH loan statement showing interest paid.
Sometimes the IRS folks aren't too bright.
Fought with them with 3 yrs. because they had misfiled a properly submitted form.
Finally got in touch with IRS Advocate (part of IRS that helps folks with IRS issues). They looked at the info I had repeatedly submitted and went....OH that form was misfiled as income :S
You have to prove them wrong..which they NEVER will admit too!!!
When you filed Federal Return did you report the interest paid on line 10 or line 11 of Schedule A?
Should have been separate from home mortgage interest paid (line 10)
"Tax deductibility of interest on RV / Motorhome loans
Under IRC section 163 (h)(2) a taxpayer may deduct any qualified interest on a qualified residence, which is defined as a principal residence and one other residence owned by the taxpayer for the purpose of deductibility for the tax year. IRC section 163(h)(3) defines qualified residence interest as any interest which is paid or accrued during the tax year on acquisition or home equity indebtedness with respect to any qualified residence of the taxpayer.
In accordance with IRC section 163(h)(4), an RV will be considered a qualified residence if it is one of the two residences chosen by the taxpayer for purposes of deductibility in the tax year as long as it provides basic living accommodations such as sleeping space, a toilet, and cooking facilities. If the RV is chartered out, the taxpayer will have to use the RV for personal purposes for either more than 14 days or 10% of the number of days during the year the RV was actually rented, in accordance with IRC section 280A(d)(1).
Form 1098 is not necessary in order to receive the qualified interest deduction. In accordance with IRS instructions for Schedule A, form 1040, if the taxpayer does not receive form 1098, deductible mortgage interest should be reported in line 11 instead of line 10 on Schedule A."
Re-submit copy of Schedule A with explanation that home mortgage interest paid was XXXX and that the MH interest paid was XXX with copies of home mortgage interest and MH loan statement showing interest paid.
Sometimes the IRS folks aren't too bright.
Fought with them with 3 yrs. because they had misfiled a properly submitted form.
Finally got in touch with IRS Advocate (part of IRS that helps folks with IRS issues). They looked at the info I had repeatedly submitted and went....OH that form was misfiled as income :S
You have to prove them wrong..which they NEVER will admit too!!!
