When it comes to taxes—one of the unavoidable things in life—there’s a lot of information about the tax benefits for homeowners. But what about RVers? There are some ways that owning an RV could be a benefit when tax time rolls around each year.
Disclaimer: This article was written for information purposes only. This should not be considered financial advice, and should not be substituted for the advice of a certified tax professional.
Your RV can be your first home
If you’re a full-time RVer, you might not think you have the homeowner tax advantages that you can take advantage of. However, if you live full-time in your RV, you could qualify still. There are certain criteria that your rig will need to meet.
The basic requirements are that you live in the RV full-time and that it has a bathroom, place to sleep and cooking area. There could be other restrictions, which is why you should speak with a tax professional who is knowledgeable in this area.
Your RV can be your second home
You may be able to write off the interest from your RV if it meets the requirements to be counted as a second home. These may include size restrictions and the same requirements as those listed above.
Your RV may be able to get you business deductions
There were many people who took to the road full-time since they were able to start working remotely last year. There are also many solopreneurs who live and work from their RVs. If you have an area in your RV that is used strictly for business purposes, you may be able to qualify for a business deduction.
The trick here is that it needs to be solely dedicated to business. If you have a desk and office space that your child also uses for road schooling, it isn’t going to qualify. Or, if you work from the dinette where you also eat, it’s not going to qualify.
Business travel expenses
If your RV is used for business travel, you may be able to deduct a portion of your campground fees and travel related expenses, including miles driven. If this is the case, it’s important to keep detailed records on hand.
Tax benefits for RV rentals
If you rent your RV out through a program like RVshare, you may be able to write off costs that are connected to your rental. This is easy to track if you only rent out your RV. However, if you also use your RV for your personal use, you’ll need to keep detailed records.
RV Sales Tax
If you paid cash for your RV and don’t have the opportunity to deduct interest expense from your loan, you may be able to benefit from RV sales tax deductions. The rules on this vary from one state to another.
Always verify your tax information
It’s always nice to keep your taxes as low as possible. However, it’s important to get the information correct. If you’re interested in taking advantage of RV tax deductions, we recommend you work with a tax professional.
If you’re looking for a California RV Dealer to purchase an RV to take advantage of some of these great tax deductions while having the experiences of a lifetime,
