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Tax advantage in owning A M/H


Toney

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I have a friend who ask me if he/she could use the interest he/she paid on his/her Motor Home Note each month as a tax deduction. I did not know what to tell them other than go to their CPA for this advice. Just wondering how other's handle this and could you reply if this interest paid can be used (or not) as a deduction. I am in he dark on this.

Thank you in advance, Toney, 105242

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I'm not a tax adviser, but as far as I know, yes. A motor home can be classed as a second home and the interest paid is tax deductible under the allowed mortgage deduction as long as you itemize deductions. However, you are only allowed 1 second home, so if you pay interest on yet another second home, and you pay more interest on that home, then you should claim the other.

 

If I am not mistaken, the only "test" for "home", as defined for tax purposes, is that it have facilities for eating, sleeping, and toilet.

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Last year our tax consultant (H&R Block) said yes we could use the interest on our MH. This year the standard deduction got 100% of our Fed tax withheld back as our income is from SS (me) and small pensions (both) and investment gains and is below the threshold to have to owe any taxes. I used the online H&R Block service and used both an itemized and standard deduction and got the same results. This is the first year in MANY years that the itemized deduction did not benefit us. Since we are in Florida, we had no state income tax returns to submit.

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Any self contained RV may qualify as a home or second home for tax purposes if it meets the definition of a home. In fact Motor Home isn't even specifically mentioned. You can read what the IRS says about deducting home mortgage interest in IRS Publication 936:

 

"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."

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TCW has posted the proper information and even quoted from the IRS publication which I would have used.

 

We did that for years when we had payments on an RV as soon as we moved up from a popup to a self contained RV. It must have kitchen, bathroom, and sleeping facilities. It is treated exactly the same way as for a home but, you may only do so for two homes. If you make payments on a primary home and a vacation property, then you may not use the RV as a third one. For most of us that isn't a problem but you do need to be aware of the limit.

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Thanks everyone, I'll pass this information on as well as a copy of the IRS pub. 936. The IRS make's it plain and simple. This will also benefit my DW and me as for year's we were told we didn't qualify.

 

Thanks every one. You have prove the point about the forum that there are many people out there that can help you, just ask.

Toney, 105242, see you at the Escapade.

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Great,

That's was the best way for us. Although we started out with a hobby biz it wasn't worth the hassle. We bought a great for the time used fiver and I had the Diesel dually, and we took off when I retired from the military at 45 for a well deserved 7 year decompression. And we got to take our time seeing and doing everything we chose West of the Mississippi, and from Mexico to Alaska experiencing our continent and countries one person at a time.

 

Have a blast!

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