RV Loan Tax Deduction
RV Loans as a Tax Deduction?
The vast majority of individuals who finance their recreational
vehicle may qualify to deduct the interest on their RV loan as a
second home. Not only will you be able to enjoy the benefits of
RV travel, you will likely receive a mortgage interest deduction
as well.
To qualify, the Internal Revenue Service (IRS) has ruled that:
The RV Must be used as security for the loan. The RV must have
basic sleeping, cooking, and toilet facilities.
Nearly all RV types - motor homes, travel trailers, truck
campers and many folding camping trailers - are equipped with
these facilities.*
*An RV with full facilities can qualify as a "dwelling unit"
under the IRS code section 280A(f)(1). The U.S. tax court case
of Haberkorn v. Commissioner. 75 T.C. 259 (Nov. 12, 1980 filed)
gives further guidance on the tax deductibility of RVs.
The IRS description qualifies virtually every type of
recreational vehicle on the market today! Even pop-up campers
may qualify under this description. All you would need is a
simple stove and porta-potty. So enjoy the benefits of RV travel
and get a tax advantage too!
Taxpayers may not claim the interest from more than two
qualified homes on their tax returns. Ask your tax adviser for
more information. The information contained within this article
is meant to be helpful and informative, but not to take the
place of advice from your financial consultant, accountant or
other professional.
Barry Wilder