Tax Deduction for RV as second home

[jmcmahon]

We are currently paying a mortgage on a home in Minnesota and now we are working full time and living in a Class A motorhome

in Williston North Dakota.

 

I know the interest on the motorhome loan is deductible, but is the lot rent we pay deductible?

 

Since we have to pay for electricity as well, is any part of that deductible?

 

Thanks,

 

John

 

 

 

[jonault]

Lot rent probably isn't; if I rent an apartment the rent isn't a tax deduction (although when I was a college student in Michigan, there was a low income property tax credit & I was able to claim that based on a percentage of my rent).

 

And electricity is even less likely to be tax deductible - if it is I could sure use that on my s&b.

 

Maybe if you were using your motorhome as an office (or have a dedicated office space in your motorhome) you could claim a portion of those things as a business expense, similar to a home office situation. But I don't know much about such things since I've never had a home office. I'd talk to a tax professional before trying that.

[GlennWest]

Yes, lot rent is and interest on camper is. It's a home. As long as you have to stay away from your primary home for work, your second home expense is deductible. You have a state/city meal allowance determined by the irs also. Your mileage from primary home to lot/space you are parking second home and addition mileage when you travel back to primary home also. Key point is "second home for employment"

[Alie&Jim's Carrilite]

The key IRS wording is "Duplicating expenses" . If you are duplicating expense for work related living then they are deductible. If you are a fulltimer with no home to return to then you are outa luck.

[GlennWest]

Thought I made that plain. "Second home". This is the IRS term used also. You have to have a primary home you are leaving to work, stay somewhere which will be second home, and return to primary home. That is why we had to purchase a residence in Texas to return to when not working so I could continue deducting expenses after we sold our place in NC.

[Kirk W]

Let me suggest that you get the help of a professional as the answers given are far more definitive than is the opinion of may friend who happens to be employed as an auditor for the IRS. Only temporary quarters are deductible, such as when you return home on weekends. If you wish to research this yourself, get a copy of IRS Tax Topic 511B. One of the pertinent paragraphs.....

 

You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you cannot deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you will work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.

There may be other publications that apply but be aware that travel expenses are one of the items which IRS monitors more frequently. As my IRS employee friend likes to say, "You can deduct anything that you wish to, but the catch is getting the IRS to accept it." An honest mistake has no criminal penalty but it can bring interest and monetary penalties if you happen to get caught. In today's climate, the probability of getting audited is much lower than in the past, but there are still some audits done, something like 1% or so of the returns each year.

 

I doubt that any of us here are really qualified to give legal advice, but at the least take some time to do some reading on the IRS site and also call their public information phone as they have staff whose job it is to assist tax payers. I have used them and they are very helpful and they don't ask for any identification so you remain anonymous.

 

email for IRS information or the live chat line

 

Call the IRS.gov Website Help Desk.

U.S. and Canada:
800-876-1715

[GlennWest]

I been doing this most of my working life. Been audited twice. Always came out good also. Do need to keep good records. I keep a log book. Saved my butt on audit also. Travelers Tax Service are professionals. They have helped us early on.

[docj]

Maybe if you were using your motorhome as an office (or have a dedicated office space in your motorhome) you could claim a portion of those things as a business expense, similar to a home office situation. But I don't know much about such things since I've never had a home office. I'd talk to a tax professional before trying that.

 

This is a link to the 2013 Tax Court case that is the most recent baseline with respect to using an RV for business. The Court has made it pretty difficult to claim business deductions for an RV that you also use for anything else. http://www.ustaxcourt.gov/InOpHistoric/dunfordmemo.gustafson.TCM.WPD.pdf

[GlennWest]

Don't let that 12 months on same job bite you. You do loose your write offs after 12 months. I quit a job because of this.