Deductable

[spyknee]

I have heard tell that you can deduct a motorhome as a mortgage on your taxes.
Is this true? fed wise, state wise.
Can you deduct as a full timer?

ty

 

[Gregg]

Got this off of TurboTax site:"A camper or Recreational Vehicle (RV) meets the IRS definition of a second home if it contains sleeping, bathroom and kitchen facilities.  Interest paid on a loan for the purchase of a recreational vehicle is therefore tax deductible as valid home interest on a second home.

For confirmation, please refer to IRS Publication 936, Page 4, left column, first paragraph, under the heading Qualified Home, here:

http://www.irs.gov/pub/irs-pdf/p936.pdf"

Obviously if living in it full time it would be considered your primary.

 

[BoomerD]

Yep...you can deduct any interest on the loan...as well as any property taxes and license fees. Of course, MOST states add a bunch of other things to the cost of a vehicle license...MOST of which aren't deductible.

 

[spyknee]

coolio, one more thing to add to prep list.

In 2 years I can access my annuity without heavy penalties. So......................

 

[Gary RV_Wizard]

Note that it has to be your first or second home. The Home mortgage interest deduction is limited to a max of two "homes".

 

[Steve N Dee]

As a CPA, I'll confirm that all of the above are giving you correct info.  One more tidbit.  In order to deduct first and second home mortgage interest, the combined mortgage balances can't exceed 1,100,000.00.  If it does, the interest deduction is prorated to the equivalent of a 1,100,000.00 maximum.  The IRS has a worksheet to calculate this if it applies.

Also, re: your annuities, most of them have a provision that you can start taking monthly withdrawals at any time, up to a specified amount, penalty free, even if you are still in the initial penalty period.  Just a thought if you were looking for funds to make a monthly payment on a MH.  If you are looking for a large lump sum withdrawal, this wouldn't work for you.

Steve

 

[camperAL]

Greetings,

I plan on going to some shows and conducting business from my RV each year. According to my accountant milage, interest on a loan and fees charged by my state on plates are deductable.

 

[Steve N Dee]

Now you're talking business expenses, which take on a whole new dynamic from personal itemized deductions that we were discussing before.  I would definitely rely on the advice of your accountant in this area.  Assuming he is knowledgeable in this field.  After all, he will be the one preparing your tax return.  If he's not, time to get a new tax preparer.

Steve

 

[Gregg]

You may want to verify with your accountant so there are no surprises, but on my business vehicle, I needed to track my mileage and it was then prorated between business expenses and personal.  Interest on the personal end would depend if you are going long form, compared to business which comes right off of the top.  The added benefit if a substantial portion is for business, you can take depreciation and vehicle expenses.  Just be careful, you can take the mileage deduction, or the depreciation and expenses, but it can not change once established.  I got burned on that one because my accountant started taking mileage and when gas shot up I lost out big time.  I was driving a truck that thought it was a MH when it came to MPG.

 

[spyknee]

good info ty.
whats an accountant, whats a tax preparer.
I do this all myself.
I intend to set the annuity up to make a monthly dispersement, the MH payment, Insurance on it, that's it. I must pay tax on it so I withdraw less, less income tax.

I'm gonna cut my income so low that I will be poverty level. Maybe NO taxes! How much can it cost to sit in the woods and watch the trees grow..............