Your RV second home = deductions at tax time

An RV loan can provide a tax deduction.

An RV loan can provide a tax deduction.

Your RV loan could provide you with a tax deduction at income tax time. You need to itemize your taxes and you must meet the requirements of the IRS. According to the IRS, all “second homes” must be used as security of the loan and must have basic sleeping, cooking and toilet accommodations. This would apply to nearly all RVs except pop-up trailers; most others meet the requirements.

Your loan interest would also be deductible if this is your full-time home as well, as long as it meets the IRS requirements.

We often get asked if your RV and RV travels are deductible. You would probably want to talk to a tax person like George Montgomery, the “RV Tax Master,” to find out how to apply it in your case. As I understand it, if you maintain a homebase, there are instances when you can deduct your mileage to a work or volunteer assignment. If you use your RV for business purposes, you may also have some deductions.

For some, having an RV loan is a help at tax time. If you don’t itemize, then it won’t. In that case, not having a loan gives you more flexibility. My advice, unless deducting the interest on the loan would be a big help, hitting the road debt free is optimal. Whatever it takes, though, hope to see you out there! Jaimie Hall Bruzenak

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