When you bought an RV, you thought you were buying a lifestyle. You’d travel, wear cashmere and boat shoes, and call everyone younger than you “Skip.”
Joking aside, there is a certain wanderlust that attracts a lot of different people to traveling in RVs. On top of all the other benefits that come from RV ownership, you’re also entitled to a few tax breaks.
Not many of RV owners know that they can claim these breaks on their taxes, and it ends up costing them perhaps thousands each year. Today, we’ll take a look at some of the most common tax deductions for RV owners, when you should use them, and most importantly, how.
If you want to read the code for yourself, you can see the most up-to-date information about mortgage interest deductions straight from the IRS.
Your RV as Your Second Home
If you bought your RV using a loan from your bank or credit union, you’ve been paying interest on that loan since day one. While no one likes paying interest, it actually benefits you in this situation because of a provision in the tax code that does so.
If you’re a homeowner, you’re aware that you can deduct interest paid on a mortgage. This saves thousands of dollars a year by itself.
Now, if you own more than one home, you can deduct that interest paid as well. And guess what? An RV counts as a second home. Of course, there are a few contingencies in place to make sure that this tax break isn’t abused. You need to have permanent sleeping, eating, and bathroom facilities in place to claim your RV as a legitimate second home deduction. Unless you took all of those features out of your RV when you bought it, you’re fine.
RV Tax Deduction for Business
With the rise in remote workforces across corporate America, more and more people are learning about various opportunities to write off everyday expenses on their taxes. If you’re self-employed, things only get better.
For a remote worker, for example, you can write off things like your laptop, cell phone, internet, and other services or goods that are vital to your doing your job. Whether or not you can write off travel is dependent on the situation, so you’ll want to talk to a tax expert on that.
If you’re self-employed, though, and spend time working in or traveling in your RV to generate income, then every RV-related expense is something you can write off. Gas, food, regular maintenance, RV pad fees – you name it, and you can write it off as an RV tax deduction.
The point of all these tax breaks isn’t to give people who can afford an RV special treatment. Rather, they exist to help everyone in similar situations. The same breaks RV owners benefit from may help others in different circumstances.
If you want to learn more about how to write these expenses off on your taxes, or financing an RV, feel free to get in touch with us today.
For the most recent updates on RV tax deductions please visit, https://www.irs.gov/publications/p936