# Taxes



## specialcampers (Feb 26, 2005)

When we where shopping for our outback we read you can deduct the intrest you pay on your TT as your second home. I can't find any more info on this and can't remember what dealer I read it at. Has anyone else heard of this?


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## CamperAndy (Aug 26, 2004)

It is true that you can deduct the interest on your TT as a second home as long as it has toilet, cooking and sleeping capabilities.


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## Morrowmd (Feb 22, 2005)

Yup, been doing it for years. You have to use schedule A and itemize.


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## hatcityhosehauler (Feb 13, 2004)

That's why I have an accountant....


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## HootBob (Apr 26, 2004)

Does it have to be payed off first?









Don


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## Ghosty (Jan 17, 2005)

HootBob said:


> Does it have to be payed off first?
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If it was paid off -- why would you be having interest???

But to answer your question -- NO -- you can deduct the interest paid until you finally get it paid off...


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## nynethead (Sep 23, 2005)

My accountant said yes and that's why I took a loan from the dealer at a fixed interest instead of putting on the home equity.


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## PDX_Doug (Nov 16, 2004)

It's true Crawford









The only stipulation - other than what has been stated already - is that you can only deduct the interest from a single 'second home'. If you happen to have a vacation home as well as the Outback, you can only deduct one of them.

Happy Trails,
Doug


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## aplvlykat (Jan 25, 2004)

Not only the interest but I think you can also deduct the sales tax. This may differ among the different states but I think it works with the purchase of any big ticket item such as TT, cars, boats. You may want to check with your tax person(PC) if you purchased this year. kirk


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## matty1 (Mar 7, 2005)

If you have a loan for the trailer, they should be sending you an insterest statement, just like your mortgage. I have to remind them.


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## 2500Ram (Oct 30, 2005)

nynethead said:


> My accountant said yes and that's why I took a loan from the dealer at a fixed interest instead of putting on the home equity.
> [snapback]74988[/snapback]​


What's the difference in your loan or home equity loan, you can deduct the interest on either.


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## GlenninTexas (Aug 11, 2004)

aplvlykat said:


> Not only the interest but I think you can also deduct the sales tax. This may differ among the different states but I think it works with the purchase of any big ticket item such as TT, cars, boats. You may want to check with your tax person(PC) if you purchased this year. kirk
> [snapback]75001[/snapback]​


I may be wrong, but I think that you must live in a state that does not have an income tax n order to deduct sales tax.

Regards, Glenn


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## huntr70 (Jul 8, 2005)

GlenninTexas said:


> aplvlykat said:
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> 
> > Not only the interest but I think you can also deduct the sales tax. This may differ among the different states but I think it works with the purchase of any big ticket item such as TT, cars, boats. You may want to check with your tax person(PC) if you purchased this year. kirk
> ...


In PA, you can deduct sales tax on certain high ticket items, such as autos, RV's, and boats.

And believe me, we have an income tax!!

Steve


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## PDX_Doug (Nov 16, 2004)

2500Ram said:


> What's the difference in your loan or home equity loan, you can deduct the interest on either.


Not so fast!

The problem with home equity loans are they are non-specific. There is a significant burden of proof issue that you must deal with in convincing the IRS that the proceeds of the home equity loan were in fact used for the purchase of the trailer.

And, no, home equity loans in and of themselves are not necessarily deductable. It all depends on how they are used.

It is much easier to get a stand-alone loan on the RV, and approach the IRS that way.

Happy Trails,
Doug

Disclaimer: I am not a CPA, I just play one on TV!


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## 2500Ram (Oct 30, 2005)

Thanks Doug for the clarification. We had a home equity loan to finish the basement, that was a write off 2 yrs ago on the interest. Changed the loan from a equity variable rate to a fixed 2nd again a write off. Camper was paid cash so I'm not able to get anything on that. I wasn't aware there were specifics on what you could use your equity for and still claim the interest.

Bill.


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## huntr70 (Jul 8, 2005)

DW works in the banking industry......I just asked for clarification.

A home equity loan that uses your home as colateral, interest is tax deductable.

However, and this applies to the RV loan as well, if your interest is less than $600 for the year, the loan company is not required to send you a statement stating the interest paid.

You can request a statement, but they don't automatically send one.

Regardless of amount, the interest IS deductable.

Steve


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## PDX_Doug (Nov 16, 2004)

2500Ram said:


> I wasn't aware there were specifics on what you could use your equity for and still claim the interest.


Basically, as I understand it (as explained by my FIL, who IS a CPA), you can't deduct interest from a home equity loan that is used for anything that you would not be able to write off if it were a stand-alone loan. The IRS is not in the habit of giving away money!

As I said before, the difficulty with home equity loans is that their use is non-specific. You can tell the bank anything you want as far as what you intend to use the loan for, but The Tax Man is gonna want proof. Lots of proof!

You may have noticed in advertising for home equity loans, they will always state something to the effect that 'Interest may be tax deductable, consult your financial adviser'? This is what they are talking about.

Happy Trails,
Doug


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## Stacey (Apr 25, 2004)

Home equity loans are tax deductable regardless of the use of the proceeds of the loan provided that (1) the home equity loan does not exceed $100,000 and (2) the home equity loan combined with your outstanding mortgage do not exceed the value of your home. Most lenders won't give you a home equity loan unless you have sufficient equity and most people take these loans out for less than $100,000 so that it's very unusual that your home equity loan wouldn't be tax deductable.

If on the otherhand the home equity loan breaks either of the above two rules, it is still tax deductable if the proceeds of the loan are used for home improvements.

Assuming that both the home equity loan and the RV loan are tax deductable, what it boils down to is which approach is going to give you the best interest rate. If you don't mind going with a variable rate then your best bet is a home equity line of credit. If you want a fixed rate loan then RV loan rates are more competitive with home equity loan rates. You also need to look at how much you want to borrow. If you're looking for a smaller loan then some lenders charge higher interest rates, particularly with RV loans. Whatever you do, you should shop around.

Signed Stacey's husband, CPA


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## nascarcamper (Jan 27, 2005)

Another thing to consider is rv dealers get points from lenders that can be used to make a deal work. Work out the best deal possible then tell them you want a lower rate. I love that part. They're usually not too interested in losing all that time they spent with you.


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## Sasha (Apr 13, 2004)

I claim the interest paid on the camper and also the ad velorum taxes paid for the tag.


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## 7heaven (Jun 4, 2005)

Someone told me that if I have a home equity loan and the rv loan, I can only deduct the interest for one of them.







Doesn't make sense to me...







The home equity loan was for home improvements, the rv loan is for my "second home"...


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## Katrina (Dec 16, 2004)

7heaven said:


> Someone told me that if I have a home equity loan and the rv loan, I can only deduct the interest for one of them.
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I believe that would depend on if you have a mortgage on your house or not.
If you have the mortgage, the equity loan, and the Outback. You should be able to claim two of the three.

I'm not a CPA, but I did stay at a holiday Inn last night.


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## Stacey (Apr 25, 2004)

Assuming that you have sufficient equity, the mortgage and home equity loan have recorded liens on your house and the rv loan has a recorded lien against your rv you should be safe.


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