Does Your RV Qualify As A Second Home?
Whether you buy a recreational vehicle to use for an occasional trip to the lake or live in it for months at a time, as long as it meets the Internal Revenue Service’s standards, you can claim your RV as a second home. This can provide you with a tax break as federal tax law in 2015 allows you to deduct mortgage interest on both your main home and a second home.
Mortgage Interest Deduction
Not all RVs meet the IRS’ definition of a home. Your RV must have sleeping, cooking, and toilet facilities. You don’t actually have to live in your RV or even use it during the year for it to qualify as your second home, provided you don’t rent it to someone else. If you rent your RV out, you must use it for, at least, 14 days during the year, or the IRS will consider it a rental property rather than a second home. You don’t get a tax deduction for buying a RV as a second home, anymore than you would get a tax deduction for buying your main home. The primary tax deduction is the mortgage interest deduction.
Is Your “Second Home” Financed?
To qualify for a write-off, the loan must be secured either by your RV or your main home. If you withdraw money from your individual retirement arrangement and paid cash for your RV, you have no mortgage interest to deduct! If you take out a personal loan that is not secured by either the RV or your main home, you can’t take the mortgage interest deduction. Be sure to check with a tax preparation expert to find out what other deductions you may be able to take.
The RV Financing department here at Sky River RV can be a great asset in your research as well.
