TT and tax deductions

[Weeluvdis]

Hello
We bought our first TT in June 2013. I vaguely remember the salesman saying something to do with a tax deduction on the TT because it is considered a second home. Can anyone tell me more about this? What, if anything is deductible?

[Hondavalk]

tatest wrote:
They tend to oversell this idea, to sell RVs. Not a lot of buyers can make use of the interest deduction.

To make it worth while, the sum of your itemized deductions needs to exceed your standard deduction. Interest on a RV loan might not get you there. Taxes and interest on two stick and brick homes no longer take me past the standard deduction. Last time I was able to itemize that much, it included about $25K in medical expenses (my share, not the half million my insurer paid out).

X2

[Sinnettc]

We've been deducting the interest on our little sailboat for the last 4 or 5 years. It's got bunks, stove & potty. Annual interest paid is on the December loan statement from the CU.

[Atlee]

Any RV buyer who already uses Sch A should be able to deduct the RV interest.

tatest wrote:
They tend to oversell this idea, to sell RVs. Not a lot of buyers can make use of the interest deduction.

To make it worth while, the sum of your itemized deductions needs to exceed your standard deduction. Interest on a RV loan might not get you there. Taxes and interest on two stick and brick homes no longer take me past the standard deduction. Last time I was able to itemize that much, it included about $25K in medical expenses (my share, not the half million my insurer paid out).

[tatest]

They tend to oversell this idea, to sell RVs. Not a lot of buyers can make use of the interest deduction.

To make it worth while, the sum of your itemized deductions needs to exceed your standard deduction. Interest on a RV loan might not get you there. Taxes and interest on two stick and brick homes no longer take me past the standard deduction. Last time I was able to itemize that much, it included about $25K in medical expenses (my share, not the half million my insurer paid out).

[JJBIRISH]

You won’t need a 1098 and Chances are you won’t get a 1098 for the RV loan… request a interest paid statement from the bank for your records…
you will have to report it separate on the line for mortgage interest paid without a 1098, provided it is qualified interest…

[PawPaw_n_Gram]

There was a long thread on a fellow who got a back bill from the IRS for a few thousand dollars because his Class A wasn't considered a second home.

There is a form 1098 you get from the mortgage company listing the amount of interest to the penny. However almost no RV loan lender sends that form out to RV owners. Deducting RV interest - you need a statement or other proof of the amount of the deduction.

This fellow also owned some unimproved land - no house or other facilities. But the people holding that mortgage send out a 1098 on that loan.

You can see how the IRS would think the two 1098 forms (his home and the unimproved land) equals two homes - and disallowed the RV interest deduction.

It took a phone call and some work to get the issue resolved.

BTW - for some of us the RV is the first home. Don't have another one.

[aedubber]

I know the salesman in NJ had mentioned it to me , its considered a mortgage and you can use it when you do your taxes .

[fla-gypsy]

brholt wrote:

BillB800si wrote:
Sorry you don't get to deduct your sales tax. You can deduct the interest on the RV loan as a second home, if you go long form on your Federal Taxes. Use schedule A just like on your original home.

Actually you may be able to deduct the sales tax you paid to purchase it. If you bought it in 2013 and you itemize your deductions (schedule A) you have the choice of deducting your states income tax or sales tax (if you live in a state with no income tax this is something of a no brainer). You can keep track of all the sales tax you payed for the year or let the IRS estimate the sales tax and then you can add on the sales tax you paid for purchases such as cars and RV's.

X2, mortgage interest and sales tax on the RV can be a legit deduction in the right circumstances.

[brholt]

BillB800si wrote:
Sorry you don't get to deduct your sales tax. You can deduct the interest on the RV loan as a second home, if you go long form on your Federal Taxes. Use schedule A just like on your original home.

Actually you may be able to deduct the sales tax you paid to purchase it. If you bought it in 2013 and you itemize your deductions (schedule A) you have the choice of deducting your states income tax or sales tax (if you live in a state with no income tax this is something of a no brainer). You can keep track of all the sales tax you payed for the year or let the IRS estimate the sales tax and then you can add on the sales tax you paid for purchases such as cars and RV's.

[mlts22]

Sleeping space? Check (queen bed in front.)
Toilet? Yeppers.
Cooking facilities? Yep.

I had a tax preparer run my stuff, and it was a deduction for me... not big, but better than nothing.

[JJBIRISH]

click

pub 530

2013 Instructions for Schedule A (Form 1040)
Itemized Deductions

Lines 10 and 11
Home Mortgage Interest
If you are a homeowner who
received assistance under a
State Housing Finance Agency
Hardest Hit Fund program or an Emergency
Homeowners' Loan program, see
Pub. 530 for the amount you can deduct
on line 10 or 11.
A home mortgage is any loan that is secured
by your main home or second
home. It includes first and second mortgages,
home equity loans, and refinanced
mortgages.
A home can be a house, condominium,
cooperative, mobile home, boat, or
similar property. It must provide basic
living accommodations including sleeping
space, toilet, and cooking facilities.

[thomasmnile]

IRS Publication 936

Hardly scintillating reading, but you should be able to determine if the loan interest on your RV is deductible. Good luck!

[Weeluvdis]

Thanks for the quick replies! Trying to get my taxes done while I'm staying in my house out of the deep freeze.

[Greydennyhawk]

Please refer to IRS publication 936, "deductibility of home mortgages"
Thank you