Tax Deduction For Motorhome As Second Home

[MarkandAmy]

Hello, I have a tax question. Has anyone claim the deduction for the second home (RV)?

I normally use Turbo Tax software and never find the area to claim the second home deduction. Am I missing something?

Different software maybe?

Thanks in advance

Mark

2002 Ambassador

[hermanmullins]

Mark & Amy,

Let me be one of the first to welcome you to the Forum.

To your question, yes we have taken the second home deduction each year for the last 12 years. However our taxes are done my a CPA.

I am sure there are people out there that can answer your question.

Is there a phone number on Turbo Tax for help? Do you have the 2010 version? Did you register it? If so then they should have a help line to call. In the mean time feel secure in knowing that there are only two things in life that are for certain, "Death & Taxes"

Good luck and HAPPY RVing.

[jrp616]

As a "recreational" 2nd home, the possible deductions are Mortgage Interest and Property Tax. Since most motorhomes do not incur property tax, you're primarily talking about an interest deduction, if your motorhome is financed.

To claim that deduction you must itemize (schedule A) and Turbo Tax will ask if you had any mortgage interest when going thru Schedule A itemized deductions form. Its entered on line 10 or 11 of schedule A, depending on whether you recieve a 1098 form from that financial institution.

Yes, I claimed that interest deduction for years, until I retired and paid off my MH loan.

[jmonroe]

I've used turbo tax for a number of years and have always taken the deduction. One caveat, however. Be sure to make a notation that it is interest on an RV on your tax form. I had not been making any special notation and got 'audited' as the bank does not report RV interest, as they do home mortgage interest, to the IRS. Once I finally got a real person on the phone and explained, my case was cleared.

[hermanmullins]

As a "recreational" 2nd home, the possible deductions are Mortgage Interest and Property Tax. Since most motorhomes do not incur property tax, you're primarily talking about an interest deduction, if your motorhome is financed.

To claim that deduction you must itemize (schedule A) and Turbo Tax will ask if you had any mortgage interest when going thru Schedule A itemized deductions form. Its entered on line 10 or 11 of schedule A, depending on whether you recieve a 1098 form from that financial institution.

Yes, I claimed that interest deduction for years, until I retired and paid off my MH loan.

Good explination. WOW you should be congratulated, paid off your motor home.

[cmarq]

Connecticut towns and cities DO tax all rvs be it a trailer or motorhome. I pay over $1000.00 for my 2003 Pace Arrow and it is a legit deduction.

[Jon796]

To write it off, the tax code states that you must also stay in the RV for at least two weeks a year, so save your receipt from camp grounds to prove this.

For the vast majority of RV buyers, the interest on their recreational vehicle loan is deductible as second home mortgage interest. To qualify, the rv must be used as security for the loan and must have basic sleeping, toilet, and cooking accommodations.

Virtually all RV types: motorhomes, travel trailers, fifth wheels, truck campers, and even some tent trailers are equipped with these facilities. You can also write off some boats.

[garykd]

Hi MarkandAmy,

Welcome to the FMCA forum. The IRS has very clear rules about claiming a second home on wheels. At this time a motor coach qualifies. If your lender did not send you a 1098 form, call them and demand they do so. The 1098 balances the IRS books with the interest deduction you claim. If there is not 1098, you will be audited and will need to explain the interest deduction is for a motor coach. This is usually a mail audit. It amounts to an irritating and inconvenient task. Go to http://www.irs.gov/publications/p936/ar02....blink1000229900 and read about this topic.

The IRS defines a qualified home as:

"For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities."

[cmarq]

I just finished Turbo Tax for 2010, under personal property tax you will find the deduction for motor home taxes if you did pay any.

[dogpatch]

American's should count themselves lucky in this instance. In Canada, we cannot apply for this tax deduction. My CPA chuckled when I queried her on this. I forget sometimes that this is an international Forum. LOL