RV Tax Benefits You Should Know

If there’s one thing you can’t go without doing its taxes, even though they’re probably the least enjoyable thing to do. With that being said, RV owners can enjoy a few tax benefits that people who don’t own RVs can’t. While doing your taxes certainly isn’t fun, it’s nice to know that your getaway vehicle can help you save a little money.

Here’s a look at some ways your RV could help you come tax season.

You May be Able to Count Your RV as Your Second Home

Depending on the size and features of your RV you may be able to count it as a second home and write the interest off on your taxes. This deduction can be a major boon for part-time RVers come tax season.

According to Turbo Tax, the IRS publication 936 states, “A home includes a house, condominium, cooperative,  mobile  home,  house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.” That means your RV would likely qualify as a second home and you could claim the interest on the loan for your RV.

If Full-Timing, Your RV Can be Your First Home

If you’re a full-timer, don’t despair. You can also take advantage of a home loan interest deduction without it being your second home. Because you’re living in your RV, it qualifies as long as it fits the criteria listed in IRS publication 936.

Basically, if you’re living in your RV and it has a sleeping area, cooking area, and toilet facilities, then you should be able to write off the interest on your taxes. There may be some exceptions for unique or homebuilt RVs, so you should consult with your tax professional before making any assumptions that your RV fits the criteria. A qualified tax professional will be able to tell you if your RV fits in with the requirements.

RVs Used for Business Also Get Tax Deductions

Do you use your RV solely for business purposes? If so, you can write off a lot of the expenses associated with it on your taxes. In fact, the whole RV may qualify as a business deduction.

The trick here is to never use your RV for personal use. Even using it a few times a year for personal trips can disqualify it from being a full business deduction.

If you live in your RV full-time and work inside it, too, then you may be able to deduct certain business-related expenses, depending on what they are and if they are used solely for business purposes. Talk with your tax professional to find out what qualifies.

Note: Never make assumptions when dealing with taxes. When preparing your taxes, we highly suggest working with a certified public accountant or tax professional to ensure that you understand the laws both federally and locally. Recent changes to tax laws may impact whether or not you qualify for certain deductions, which is why it’s smart to work with a professional that knows and understands tax law.

Source link