Most RV Loans Qualify

Owning an RV has its perks! You can travel anywhere and always have the comforts of home with you. Another perk you might not know of is that your RV might be tax deductible. Your interest paid on most RV loans is deductible. How do you know if you can use your RV has a Home Mortgage Interest Deductible? The Internal Revenue Service (IRS) has ruled:

• The RV must be used as security for the loan.
• The RV must have basic sleeping, cooking and toilet facilities
• The RV must be rented out less than 15 days per year (this only applies if you rent out your RV).
• Interest expense deductions on the RV must exceed the taxpayer’s standard deductions.
• Nearly all RV types – motorhomes, fifth wheels, travel trailers, truck campers, and many folding camping trailers – are all equipped with these facilities.**
• It is also a good thing to know that a taxpayer cannot claim the interest from more than two qualified homes on their tax returns. Make sure to ask your tax advisor for more information about this deduction.

With April 15th approaching fast, make sure to take advantage of this tax deduction if your RV loan qualifies for it.

**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. Taxpayers many not claim the interest from more than two qualified homes on their tax returns. Ask your tax adviser for more information.

**This information was from a blog post by RVing is Easy at Lerch RV.