Anybody here deduct their RV and related travel expenses off their taxes?

[horizon36]

If you wrap the RV and truck with your business logo is it possible that you would need commercial plates and driver license and have to stop at commercial weigh stations along the way?

[Alie&Jim's Carrilite]

"Methinks he is harvesting new clients interest - Readers of this forum are not kind to posters that advertise to openly"

 

Methinks also that his name implies this....

ReferralMan-

[ReferralMan]

Your responses have left me wondering why you ask the questions? It sounds as though you already have more experience in these matters than any of us. I'm not so sure that there is much we could tell you that would be helpful...

 

Hi Kirk... let me set things straight. I was never asking for specific tax advice. If you read my posts, you will find that I'm asking is if there is somebody here that is using their RV for business purposes, what kind of specific records are they keeping and how are they depreciating their assets.

 

"I guess my questions would be to anybody that's in a similar situation, is how did you initially expense your RV purchase? Did you do a Sec. 179, or did you go with regular depreciation? If regular depreciation, how long is your amortization period. How detailed are the records you keep, and how do you account for any "personal use"? Do you deduct your actual park expenses, or do you take the standard lodging per diem? Same with meals... actual expenses or the daily per diem?"

 

Somehow it got misconstrued that I'm asking for tax advice and should see an accountant. I'm already on top of all that! My accountant buddies suggested I feel the waters (so to speak), so that I could get an idea of what to expect when I decide to go down that road. It would be very helpful to me if there was somebody here that was already on that road. As I stated previously... I like to get things straight from the horses mouth. I apologize if this is not the proper venue for asking such questions. I presumed since this is a site devoted to living and working in RVs, that by chance there just might be somebody here that is in a similar business as I am. Never hurts to ask... right?

 

Methinks he is harvesting new clients interest - Readers of this forum are not kind to posters that advertise to openly.

 

New clients for what?

 

If you wrap the RV and truck with your business logo is it possible that you would need commercial plates and driver license and have to stop at commercial weigh stations along the way?

 

I'm sure you've seen the various motorhomes of race car drivers, entertainment artists, private/corporate companies, etc. etc that have huge colorful wraps on their rigs. You'll notice one thing they always have on their doors... NOT FOR HIRE! That means no port stops.

 

Methinks also that his name implies this....

ReferralMan-

 

I hold a multitude of business and professional licenses. Part of my revenue stream is business referrals. Thus the name ReferralMan. One thing I never do is directly advertise my business on any forums. Nor do I ever put my company name or web site in the sig lines like you see so many people on the various forums do. You may see some of my Google Ads in various places on various forums, but that is due to the forum owner wanting additional revenue via Google for his/her specific forum. Has nothing to do with me. When I buy Adwords from Google, I select the venues where I want my ads to run. If you're a consumer interested in my services, chances are one of my ads will be following you around the internet.

 

I appreciate everybody's help so far... hopefully somebody will chime in that's using an RV for business purposes and can give me the low down on their experiences.

[Lou Schneider]

Slightly off the tax subject, but many campgrounds and parks have non-commercial policies and you may find yourself denied access if you wrap your rig with advertising for your business.

 

The strictest enforcement of a non-commercial policy I've seen was at the Quartzsite LTVAs, where they required anyone with a door sign on their vehicle to either remove it or cover it over while at the campsite.

[ReferralMan]

Slightly off the tax subject, but many campgrounds and parks have non-commercial policies and you may find yourself denied access if you wrap your rig with advertising for your business.

 

I thought about that. I may end up having to boondock everywhere I go.

 

I've been to several major biker rallies, and a few of the NASCAR races around the country, and have seen wrapped RV's in some of the surrounding campgrounds, so I'm guessing there are a few campgrounds here and there that do allow wrapped rigs. I'll definitely be verifying the policies of the places I'll be staying that's for sure.

[Vladimir]

 

 

The strictest enforcement of a non-commercial policy I've seen was at the Quartzsite LTVAs, where they required anyone with a door sign on their vehicle to either remove it or cover it over while at the campsite.

 

That is because if your doing business on Federal land you need a special use permit and the government needs to permit the activity and take a cut.

 

I think BLM is assuming if your in a LTVA you will be "selling" something on public land. I really don't see an issue for short-term stays elsewhere.

[Big5er]

 

If you wrap the RV and truck with your business logo is it possible that you would need commercial plates and driver license and have to stop at commercial weigh stations along the way?

I'm sure you've seen the various motorhomes of race car drivers, entertainment artists, private/corporate companies, etc. etc that have huge colorful wraps on their rigs. You'll notice one thing they always have on their doors... NOT FOR HIRE! That means no port stops.

 

WRONG!! Not for hire, means exactly what it says "not for hire". It has no bearing on whether your vehicle is or is not commercial. Pepsi cola is the largest private commercial carrier in the U.S. They have 16,698 tractors 9,247 straight trucks 38,526 pickups and cargo vans and 15,087 trailers. They can paint "Not for Hire" all over them, but they are still a commercial carrier. "Not for hire" means that they only haul their own stuff. You can not "hire" Pepsi to haul anything for you.

If you do what you have said you are planning to, you WILL need a US DOT number, log book (yes, the hours of service regs will apply to you), a CDL (depending on size) and you should be stopping at every open scale house you see.

 

Your RV is ONLY exempt from the FMCSR's if it is used strictly for recreational use. If it is used for any business usage, it IS a commercial motor vehicle and is all in where the Federal Regs are concerned.

[ReferralMan]

Your RV is ONLY exempt from the FMCSR's if it is used strictly for recreational use. If it is used for any business usage, it IS a commercial motor vehicle and is all in where the Federal Regs are concerned.

 

Thanks for bringing that to my attention. I'll definitely be doing more research on the matter. I was always under the assumption that RV's were exempt from the ports wether they were plain janes or were wrapped with tons of graphics advertising a business. If hitting the ports is required by law for my particular situation, then that just goes that much further in solidifying my use of an RV in the tax mans eyes as a business tool. Looks like I might be adding an EZ-PASS to my list.

[Twotoes]

You really need a tax lawyer rather than an accountant. You are also asking two different questions. One regarding taking depreciation on you RV and second taking deductions for your expenses. If you have an office in your home you can take a deduction even though you live in it. You just have to deturmine what percentage of your home is used for business. I would suppose that you can do this with an RV even if you live in it too. Talk to a tax lawyer.

[ReferralMan]

You really need a tax lawyer rather than an accountant. You are also asking two different questions. One regarding taking depreciation on you RV and second taking deductions for your expenses. If you have an office in your home you can take a deduction even though you live in it. You just have to deturmine what percentage of your home is used for business. I would suppose that you can do this with an RV even if you live in it too. Talk to a tax lawyer.

 

Sorry, but a tax lawyer isn't going to be able to tell me anything that I don't already know. Believe me... I've researched every law there is (the same exact laws as a tax lawyer would research) concerning the use of an RV as a business tool. It's a gray area. Bottom line is to keep meticulous records. No biggie... I'll make it work.

 

Thanks to Big5er for bringing up the DOT issue. After a little research it looks like it would be to my benefit to apply for a DOT number whether I am a commercial carrier or not. They issue plate only numbers which is the category that I mostly fit in.

[Selah]

Just because I'm curious, if you deduct your RV as a business expense would that not make the RV a commercial vehicle and would need to comply various commercial regulations, including the requirement for a CDL?

[ReferralMan]

Just because I'm curious, if you deduct your RV as a business expense would that not make the RV a commercial vehicle and would need to comply various commercial regulations, including the requirement for a CDL?

 

You're absolutely right. Once again, thank you to Big5er for bringing all this to my attention. That's the beauty of the internet forums... there's always going to be one or two people that know their s**t and can provide a guy with the right answers. I guarantee you that no tax accountant, or tax attorney would have ever suggested to me that I need a DOT number, CDL, and commercial plates if going I'm going to be using an RV for business purposes.

 

I'll more than likely register to be a "plate only" private carrier, and won't be apportioned or authorized to haul anything for profit, thus the NOT FOR HIRE moniker I'll have on my doors. Getting the CDL will be fun. I can imagine the look on the skill testers face when I pull up in a P/U and big 5th wheel toy hauler to take my test. I can remember as a kid I got my Class A (now CDL) by using our tandem axle farm truck pulling a trailer with one of our tractors on it. The tester was a little taken aback. We drove around the block and that was it. He passed me.

[cmelkins]

I'm surprised no one has mentioned this relatively recent case in Tax Court which has been widely cited on RV forums:

 

http://www.forbes.com/sites/peterjreilly/2014/08/25/home-sweet-rv-does-not-always-produce-best-tax-result/

 

The case is a good guide as to how much deductibility you can reasonably expect for your RV and related expenses.

I too use my motorhome for business and this was a great article. Thank you! Our accountant has recommended writing off the allowable business expenses but only a small portion of the the motorhome itself.

[ReferralMan]

I too use my motorhome for business and this was a great article. Thank you! Our accountant has recommended writing off the allowable business expenses but only a small portion of the the motorhome itself.

 

Hi Coleen... what percentage of your MH is your accountant recommending you write off? Are you taking depreciation? Does the same percentage coincide to the rest of your business expenses?

[cmelkins]

Our situation changes from year to year based on what state I work in and how I am being paid.

[ReferralMan]

Our situation changes from year to year based on what state I work in and how I am being paid.

 

Do you have a business domicile?