Tax Right off

[gbsteph]

So, does anyone right off their TC as a second home if it meets the Bedroom, bathroom and kitchen requirements?

[thedavidzoo]

We took the 30% credit (not deduction!) in 2016 for our extensive solar/lithium install by treating the TC as a second home. Made it much more palatable moneywise.:)

[Tal_IL]

TXGearhead:

Here you go - https://comptroller.texas.gov/taxes/sales/use-tax.php

My employer in IL got dinged on this in an audit about 20 years ago. I was buying desktop computers from a vendor in another state for company use and we were not being charged sales tax. We got a tax bill equal to the IL sales tax rate.

[Kayteg1]

deltabravo wrote:
I can't write off the interest because there is none. I paid cash for my 2018 Arctic Fox 992.
But I can write off the purchase as a business expense.

Those things are red flags for IRS.
For years I've been deducting home office expenses and big ones and never had audit.
My friend deducted pickup expenses in his construction business and got audited over it.

[TxGearhead]

Tal/IL wrote:

I bought it out of state and didn't pay sales tax.

Does your state have "use tax" for items purchased out of state? If so, that out of state purchase showing up on your tax filing might trigger a use tax bill.

I've been here in Texas for 70 years and never heard the term use tax.

[deltabravo]

I can't write off the interest because there is none. I paid cash for my 2018 Arctic Fox 992.
But I can write off the purchase as a business expense.

[Tal_IL]

I bought it out of state and didn't pay sales tax.

Does your state have "use tax" for items purchased out of state? If so, that out of state purchase showing up on your tax filing might trigger a use tax bill.

[gbsteph]

Thanks to all. I bought it out of state and didn't pay sales tax. Will have to see what interest has been paid for this year...the year I purchased it...and see if it's worth it.

[valhalla360]

Dick_B wrote:
So if you are in a 10% tax bracket if you write off $100 in interest you cut $10 off your taxes.

Only if you exceed the $24k standard deduction and itemize. If not, you get nothing.

[Grit_dog]

gbsteph wrote:
So, does anyone right off their TC as a second home if it meets the Bedroom, bathroom and kitchen requirements?

Why are you interested in what others do on their taxes?

[Dick_B]

So if you are in a 10% tax bracket if you write off $100 in interest you cut $10 off your taxes.

[valhalla360]

We used to do it for our boat...but really it's unlikely to make a big difference unless you are way overpaying on your loan interest rate and you already are itemizing. With the $24k standard deduction for couples, most won't benefit at all.

[srschang]

Another potential tax savings are the federal and state credits, not deductions, for adding solar to your "second home". These credits can significantly offset the cost of solar power installs to RVs.

[wapiticountry]

gbsteph wrote:
So, does anyone right off their TC as a second home if it meets the Bedroom, bathroom and kitchen requirements?

The write-offs you are seeking come about if you itemize your deductions. What is deductible is the interest if it is financed and possibly the taxes if they do not exceed the SALT (state and local taxes) limitations that currently are $10,000 for a couple filing a joint return. Be aware that the SALT limitations are a cumulative inclusive of those taxes on your primary residence, the taxes on your RV and any other eligible taxes.
I doubt that the taxes and interest on a Truck Camper will result in significant tax savings except in the year it was purchased and that assumes the purchase was subject to a state sales tax. Don't forget your savings is only the amount of the allowable deductions times your marginal tax rate. It is worth taking, but it isn't going to be a windfall.

[TxGearhead]

^^Well Played. LOL