# Tax Question About Deductable Interest



## Toolmaan (Jan 11, 2007)

I was told that I could write off my interest on the Outback this year. So I am searching for more information on this, I searched the IRS site, not too clear to me. I called the loan company and they are going to send me a 1099 form with the interest I paid this year? I am using TaxCut software and I can't find anything on there about it. 
So fellow Outbackers do you write off your interest on your loan, and if so how do you do this?? Thanks


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## PDX_Doug (Nov 16, 2004)

Toolmaan,

It's pretty easy actually, but there are a couple of things you need to know. First of all, because your trailer has facilities for preparing food, sleeping and, um, relieving yourself, it qualifies under tax codes as a residence. In most of our cases, as a second - or vacation - residence, and therefore the loan is considered a mortgage, and the interest is deductible.

Where you have to be careful, is that the IRS only recognizes a mortgage interest on a maximum of two residences. If you just have a house and a trailer it's no big deal. But, if you have a house, a trailer and maybe a beach house or a mountain cabin, then you are out of luck on deducting the interest on one of them.

That said, I am not a CPA, nor do I play one on TV.

I have, however, stayed at a Holiday Inn Express!









Happy Trails
Doug


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## MikeN (May 25, 2007)

If you claim interest on your home, you can claim the interest on your camper. You are allowed to claim interest on two homes, and as long as your trailer has a kitchen, bathroom and living area, it is considered a second home and can be claimed. The interest is added to the interest of your home. There will be no seperate area on your tax return to add the second interest. My tax man has been doing mine for years.


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## Oregon_Camper (Sep 13, 2004)

What about us fools that have their Outbacks paid off? Can I get an Equity Loan on my Outback?


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## Toolmaan (Jan 11, 2007)

Does anyone have a IRS publication to look at? If I add it to my home interest it would seem shady to me. The reason why is they are different lenders, there is a spot to add an additional mortgage, I might add it there. I may have to actually talk to a tax advisor.


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## CamperAndy (Aug 26, 2004)

Look at the 1040 Schedule A insturctions for lines 10 and 11.


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## Oregon_Camper (Sep 13, 2004)

Toolmaan said:


> Does anyone have a IRS publication to look at? If I add it to my home interest it would seem shady to me. The reason why is they are different lenders, there is a spot to add an additional mortgage, I might add it there. I may have to actually talk to a tax advisor.


Here ya go...

http://www.irs.gov/taxtopics/tc505.html


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## joy-rick (Jan 27, 2008)

Toolmaan,

I am a part-time tax preparer for H&R Block (just getting home from the tax office, actually). I have some familiarity with TaxCut. If you select the tab for deductions you will find an item listed for Home Mortgage Interest (1098). Select that item and it will allow you to enter any number of 1098 forms. Thus you can enter the interest on the mortgage on your primary home, as well as the interest on the RV. This assumes that all the other provisos for entitling you to claim this interest deduction have been met.

Good luck, and if you have any further problems I believe there is an 800 number you can call for help. Or, maybe I can help.

Rick


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## justinsnow0 (Feb 5, 2007)

We also deduct the intrest on our TT. We were told running water and toilet is what makes it a 2nd home.


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## jasonrebecca (Oct 30, 2007)

My wife is a Tax Accontant and yes you can. Legally you have to stay in your Outback for 14 days a year to qualify.


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## Eagleeyes (Aug 1, 2007)

Toolmaan said:


> Does anyone have a IRS publication to look at? If I add it to my home interest it would seem shady to me. The reason why is they are different lenders, there is a spot to add an additional mortgage, I might add it there. I may have to actually talk to a tax advisor.


Claim the interest in the home mortgage section. I list three lenders there, two for the house, one for the trailer...
Bob


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## Ghosty (Jan 17, 2005)

mons02035 said:


> We were told running water and toilet is what makes it a 2nd home.


Actually in Kentucky thats what makes it a MANSION...!!

LOL


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## LewCat (Jan 6, 2008)

If you paid cash for the TT, What can u knock off just the sales tax?


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## Eagleeyes (Aug 1, 2007)

LewCat said:


> If you paid cash for the TT, What can u knock off just the sales tax?


Only if it is allowed. You could also knock of a "personal property" tax. Here in Massachusetts its called the excise tax.
B


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## Nathan (Jan 2, 2007)

Taxcut is less than clear on this, but yes, it is deductable. It still pays to have it paid off in full, but is better than nothing!


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## wolfwood (Sep 19, 2005)

Eagleeyes said:


> If you paid cash for the TT, What can u knock off just the sales tax?


Only if it is allowed. You could also knock of a "personal property" tax. Here in Massachusetts its called the excise tax.
B
[/quote]
Bob - probably better just to say its "a tax" given back to the great Commonwealth of Massachusetts...like most of the rest of your (our) income (and I don't even live there)! You could wear yourself out naming all the individual kinds of taxes down there in Taxachusetts









btw, we deduct our's, as well.


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## BoaterDan (Jul 1, 2005)

Toolmaan said:


> Does anyone have a IRS publication to look at? If I add it to my home interest it would seem shady to me. The reason why is they are different lenders, there is a spot to add an additional mortgage, I might add it there. I may have to actually talk to a tax advisor.


I personally wouldn't "just add it". The mortgage lender is reporting the interest electronically to the IRS and no need to create red flags when things don't match up. I create a second line, as if I have two mortgages.


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## huntr70 (Jul 8, 2005)

The Tax Cut software that I use allows for up to 4 or 5 lien holders.

I use 3 lines, 1 for the fiver, 1 for the mortgage, and 1 for a home equity.

2 are from the same lender.

No harm........

Steve


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## justinsnow0 (Feb 5, 2007)

Ghosty said:


> We were told running water and toilet is what makes it a 2nd home.


Actually in Kentucky thats what makes it a MANSION...!!

LOL
[/quote]

Now that is funny. I found out the other day that KY is also the number two state in the country for most adults with missing teeth.

Keep in mind, I just moved here 2 years ago from Boston so the Kentucky jokes are very funny for me because, well, some of them are true


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## Oregon_Camper (Sep 13, 2004)

mons02035 said:


> I just moved here 2 years ago from Boston so the Kentucky jokes are very funny for me because, well, some of them are true


From Boston to Kentucky....that has got to be a HUGE change.


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## justinsnow0 (Feb 5, 2007)

Oregon_Camper said:


> I just moved here 2 years ago from Boston so the Kentucky jokes are very funny for me because, well, some of them are true


From Boston to Kentucky....that has got to be a HUGE change.
[/quote]

Not all that huge because I'm in Northern KY about 15 minutes south of Cincinatti. The weather is pretty much the same but the snowfall is less. And of course no real ski areas around here







I miss my Waterville Valley


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## Oregon_Camper (Sep 13, 2004)

mons02035 said:


> I just moved here 2 years ago from Boston so the Kentucky jokes are very funny for me because, well, some of them are true


From Boston to Kentucky....that has got to be a HUGE change.
[/quote]

Not all that huge because I'm in Northern KY about 15 minutes south of Cincinatti. The weather is pretty much the same but the snowfall is less. And of course no real ski areas around here







I miss my Waterville Valley
[/quote]

What is behind your Outback in your sig picture? Looks like someone has parked their motorhome VERY close.


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## Oregon_Camper (Sep 13, 2004)

mons02035 said:


> I just moved here 2 years ago from Boston so the Kentucky jokes are very funny for me because, well, some of them are true


From Boston to Kentucky....that has got to be a HUGE change.
[/quote]

Not all that huge because I'm in Northern KY about 15 minutes south of Cincinatti. The weather is pretty much the same but the snowfall is less. And of course no real ski areas around here







I miss my Waterville Valley
[/quote]

What is that behind your Outback in your signature picture? Looks like a motorhome is parked very close.

** MOD ** Please delete this double post.


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