RV/second home/taxes
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James86004
Expedition Leader
We were told that you can claim it as a second home as long as it has a built in toilet.
Do you mean deduct the interest on a loan to finance it? You can do that a couple of different ways, one being to finance it with a home equity loan. Then you deduct the interest in the same way you would any mortgage without regard to whether you financed a kitchen remodel, an RV, motorcycle, or whatever.
I think you can also deduct the interest on an RV-specific loan on the basis that it is a second home, but you should probably check with an accountant before taking the plunge.
I think you can also deduct the interest on an RV-specific loan on the basis that it is a second home, but you should probably check with an accountant before taking the plunge.
cydonia-jacc
Observer
James86004 said:
This is the way I understood it also but you also have to prove that you stayed in it for 14 days (i think) or more.
My wife and I thought about a cabin in upper Michigan but ultimately came to the same conclusion. There just isn't one place within 3 hours of our home that we would want to keep returning to so we ended up going the RV route.
Kermit
I know some people are going that route but I would strongly advise doing this. Financing a major depreciating assets such as a RV over 15 years is a really bad idea - no matter how you look at it.
If you have a case of wanderlust, just buy a used RV off Ebay or CL and play with that for a little while. I bought a 1996 Sportsmobile (not 4wd) for $6000 and sold it back for about the same price. RV (including Sportsmobile) depreciates several $10K the first year. A RV with over 25000 miles is almost considered high milleage....you can get some serious deals on used ones.
I know some people are going that route but I would strongly advise doing this. Financing a major depreciating assets such as a RV over 15 years is a really bad idea - no matter how you look at it.
If you have a case of wanderlust, just buy a used RV off Ebay or CL and play with that for a little while. I bought a 1996 Sportsmobile (not 4wd) for $6000 and sold it back for about the same price. RV (including Sportsmobile) depreciates several $10K the first year. A RV with over 25000 miles is almost considered high milleage....you can get some serious deals on used ones.
What you're able to deduct is the interest on the loan for the RV. How to determine if your vehicle qualifies as a second home varies from state to state, so you'll have to check locally. The IRS want a sleeping area, kitchen and bath facilities.
To take advantage of the deduction you have to itemize. The value of the deduction depends on your tax bracket, of course.
To take advantage of the deduction you have to itemize. The value of the deduction depends on your tax bracket, of course.
btggraphix
Observer
Kermit said:
Isn't THAT the truth? Every time I start leaning that way or thinking about land in some remote valley or in the moountains, I think about how far that money would go in diesel and how many more places you and go with a 'mobile cabin'. I guess as nice as the thought of settling down some anchors in some quiet spot I am a roamer at heart. Besides, as soon as you set up a cabin somewhere, someone would move in next door and put in somethine next door you didn't want etc.
Those sportmobiles seem pretty nice.....
Kermit said:
Travel trailers are even cheaper. I'm setting up the Bronco to tow ourshttp://keystone-outback.com/index.html?page=detail&model=23RS&year=2005 which was $16.5k brand spankin new. I'll be able to set up a "base camp" suitable for the family and use the Bronco to explore. . .
At the end of the day, it's a cold fridge, a soft bed, and a happy family.
Ruffin' It
Explorer
X2. I just got approved yesterday for my RV loan. I'm planning on living in it for 6 months - 1 year or so to see what it is like and try to get an idea as to whether or not I could actually go through with my desire to drive around the world (albeit in a much smaller vehicle). The RV I am looking at was $114,000 5 years ago. Now, with 6,000 miles and basically brand new looking, I can pick it up for $40,000 pretty easily. My payments are going to be under $400/month. Used it the way to go.
Another nice factor about buying one with a home equity line of credit as opposed to a designated loan is that you should be able to get a much better APR.
Another nice factor about buying one with a home equity line of credit as opposed to a designated loan is that you should be able to get a much better APR.
2aroundtheworld said: