Federal Taxes - Second Home

[QuiGonJohn]

We bought our first RV during 2012. I heard from some people that we can get certain tax advantages as the Motor Home could be considered a second home.

Where can I get good information on what we can claim and how to claim it, in regards to having an RV as a second home?

Thanks!

[hermanmullins]

You can deduct mortage interest from your homestead and one more. The second may be a boat, RV, Lake house or farm house. One of the stipulations is that the second home must be liveable. That is it must be able to cook, live and Bath in it.

Now before others jump in and say different, this has been my understanding for the last 20 years. I have never been audited for the deduction and my taxes have been done by a CPA.

Hope this helps.

Herman

[jrwitt]

Go online and google "IRS Pub 17". Open it and search for vacation home or second home. The home must meet certain requirements such as having a kitchen, bath and sleeping facilities. You can deduct mortgage (loan) interest plus any kind of personal property tax that you pay annually for owning the home. This is usually the personal propterty tax that you pay when you purchase your new tags. I believe the rule is that it has to be an advalorum tax based on the value of the motorhome that year. Read the pub for any other possible deductions. Mainly, you can deduct the same kinds of interest and tax that you can deduct from a stick built 1st or 2nd home. You can only have deductions for 2 homes max. So if you have a stick built home as a vacation home (2nd home) then you cannot use the deductions for an RV home. You cannot deduct mileage, depreciation, insurance or fuel costs. If you run a business from your motorhome/RV, then the rules would change. You would need to consult a tax advisor for that info.

Hope this helps.

Jack