Writing off loan interest on RV as 1st home
I know that you can write off a recreational vehicle as a second home, but what about a first home? I currently don't spend the majority of my time in the RV (I rent a house), but a good amount of time per month is spent in the RV. I have not purchased a home yet, as the market isn't real good for a buyer and I am not sure if I will be staying in Vegas long.
An RV can be considered a first or second home for purposes of the
mortgage loan interest deduction. This means that if you have sufficient
deductions to itemize in excess of the standard deduction, you can
use the RV loan interest as an itemized deduction that will save
you some taxes. The standard deduction is an amount allowed to taxpayers
based on their filing status as a write-off against their taxable
By itemizing deductions such as home mortgage interest,
property taxes, state and local income taxes and charitable contributions,
among other things, taxpayers can increase their write-offs and
reduce their taxable income. Usually, taxpayers who rent their homes or live
in a state that does not impose income taxes will not have sufficient
deductions to itemize and will just claim the standard deduction.
To meet the IRS standard for deducting loan interest, an RV must be used as security on the loan. It must also have cooking, sleeping and toilet facilities. Publication 936, "Home Interest Deduction," says that if you rent out the RV to someone else, you must use it personally for more than 15 days per year in order for it to be considered your second home and not strictly a rental property.
The same rule also applies to boats and trailers, so you could conceivably deduct an RV as your primary residence and a qualifying boat as a secondary residence. And if you work from an office space in your RV, even that may be a deductible business expense.
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