# Rv , Travel Trailer



## Scooter (May 9, 2005)

How many take the interest tax deduction on your RV/travel trailer as a second home.

RV Loans as a Tax Deduction?

The vast majority of individuals who finance their recreational vehicle may qualify to deduct the interest on their RV loan as a second home. Not only will you be able to enjoy the benefits of RV travel, you will likely receive a mortgage interest deduction as well.

To qualify, the Internal Revenue Service (IRS) has ruled that:

The RV Must be used as security for the loan.
The RV must have basic sleeping, cooking, and toilet facilities.

Nearly all RV types - motor homes, travel trailers, truck campers and many folding camping trailers - are equipped with these facilities.*

*An RV with full facilities can qualify as a "dwelling unit" under the IRS code section 280A(f)(1). The U.S. tax court case of Haberkorn v. Commissioner. 75 T.C. 259 (Nov. 12, 1980 filed) gives further guidance on the tax deductibility of RVs.

The IRS description qualifies virtually every type of recreational vehicle on the market today! Even pop-up campers may qualify under this description. All you would need is a simple stove and porta-potty. So enjoy the benefits of RV travel and get a tax advantage too!

Taxpayers may not claim the interest from more than two qualified homes on their tax returns. Ask your tax adviser for more information. The information contained within this article is meant to be helpful and informative, but not to take the place of advice from your financial consultant, accountant or other professional.


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## CamperAndy (Aug 26, 2004)

I take the deduction.


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## Oregon_Camper (Sep 13, 2004)

I would if I could...it is pay for...so nothing to deduct.

Guess I need to buy a new trailer so I can deduct the interest.


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## N7OQ (Jun 10, 2006)

CamperAndy said:


> I take the deduction.


X2


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## mmblantz (Jul 1, 2007)

I take it...evry little bit helps---Mike


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## zookeeper (Apr 19, 2008)

We're going to take it! When we found out you could do that it helped us decide to go ahead and get the TT. You can have your cake and eat it too







.

David


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## nynethead (Sep 23, 2005)

i definitely take the deuction its almost 2k per year


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## Steve McNeil (Aug 30, 2004)

I also took the deduction every year. We finally paid it off.

Steve


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## webeopelas (Mar 11, 2006)

I did when I owned a home. Now that we are renting again, I don't have enough deductions to itemize.


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## Castle Rock Outbackers (Jan 18, 2004)

We never took the deduction before paying the camper off. After all, taking the deduction lowers the amount of money you send to the government, and that is not fair to them. We even take the standard deduction when filing our taxes instead of itemizing. Even though out itemized deductions would be nearly triple the standard deduction, again, we think that is cheating the government out of much needed tax revenue.

Randy


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## dunn4 (Feb 16, 2008)

Randy is such a kidder, right??









We took it on our popup until paid off and plan to take it on our new Outback. Isn't that what sells everyone on buying a new camper...


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## mmblantz (Jul 1, 2007)

dunn4 said:


> Randy is such a kidder, right??
> 
> 
> 
> ...


How did you do it on a popup? I thought it had to have a bathroom in it? ---Mike


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## Nathan (Jan 2, 2007)

Castle Rock Outbackers said:


> We never took the deduction before paying the camper off. After all, taking the deduction lowers the amount of money you send to the government, and that is not fair to them. We even take the standard deduction when filing our taxes instead of itemizing. Even though out itemized deductions would be nearly triple the standard deduction, again, we think that is cheating the government out of much needed tax revenue.
> 
> Randy


Don't worry, I compensated for Randy by taking the deduction even when I didn't have a trailer loan









_(Editorial note, if any IRS agent reads this, it was simply a joke and not a reason for an audit







)_


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## Paul W. (Apr 14, 2007)

We have taken it for two years in a row now.


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## Oregon_Camper (Sep 13, 2004)

Nathan said:


> Don't worry, I compensated for Randy by taking the deduction even when I didn't have a trailer loan
> 
> 
> 
> ...


Did I tell you I work for the IRS. I'm gonna need your home address and the last 10 years of your tax returns.


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## Outback Wannabe (Dec 18, 2004)

mmblantz said:


> Randy is such a kidder, right??
> 
> 
> 
> ...


How did you do it on a popup? I thought it had to have a bathroom in it? ---Mike
[/quote]

Most popups contain a toilet, if not a shower/toilet, in them.


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## ColoradoChip (Jan 21, 2008)

Castle Rock Outbackers said:


> We never took the deduction before paying the camper off. After all, taking the deduction lowers the amount of money you send to the government, and that is not fair to them. We even take the standard deduction when filing our taxes instead of itemizing. Even though out itemized deductions would be nearly triple the standard deduction, again, we think that is cheating the government out of much needed tax revenue.
> 
> Randy


That explains why you sold! If you can't take the deduction, then what's the point! If you need an address to return any future stimulus check to, let me know. I will be happy to gather them up and return them to the government for you.


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## 5th Time Around (Jul 8, 2008)

In the past (on past) TT's that were financed we took the deduction. If you use a HELOC (Home Equity Line of Credit) that interest is also tax deductible.


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## dgilmore12 (Mar 31, 2008)

We also take the deduction.


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## BoaterDan (Jul 1, 2005)

I think the better question is who DOESN'T take the deduction that is currently financing their trailer?


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## 7heaven (Jun 4, 2005)

Me, at least til now....









Someone told me if you have a second mortgage on your primary residence, you can't take the deduction for the "second home"....? Ugh......


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## ColoradoChip (Jan 21, 2008)

7heaven said:


> Me, at least til now....
> 
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> 
> ...


I don't believe that is the case. You might want to ask your CPA, but mine said that all three can be deducted.


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## BoaterDan (Jul 1, 2005)

7heaven said:


> Me, at least til now....
> 
> 
> 
> ...


Just browsed the IRS publication and I see no such thing. The biggest impact of a second mortgage seems to be that the interest deduction on each home (primary or secondary) may be limited by the value of the home. If you got up to 125% LTV with a second mortgage and then the value of your house has dropped since then, you could have a problem deducting all the interest on that home, but it has nothing to do with whether you can deduct for two homes or not.

That's my interpretation of a quick reading, being neither an attorney or cpa.


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## BoaterDan (Jul 1, 2005)

7heaven said:


> Me, at least til now....
> 
> 
> 
> ...


By the way, this is where amended tax returns are a beautiful thing. It's a surprisingly simple process - the form is essential a "redo" of the 1040, with special spots to designate the change from the originally filed version.

You could get money back for the past years when you weren't taking this deduction!


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## 7heaven (Jun 4, 2005)

I will take a look at the past two years; maybe I can pay for another trip!


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## Junebug (Aug 10, 2008)

My wife and I are weird, we do not have any debt, we do not even have credit cards, we use a debit card or cash; so we have no Outback deduction to take.

If you live like no one else, later you can live like no one else!! Quote from Dave Ramsey


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## BoaterDan (Jul 1, 2005)

Good for you JuneBug. Most people get tripped up on missing the brutal truth that a deduction never saves you as much as avoiding the thing in the first place - that is to say the deduction is never as big as the total cost. BTW, you even paid cash for your house?

For those of thus that financed these things, you certainly don't want to miss this deduction though.


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## jcat67 (Aug 8, 2008)

BoaterDan said:


> Good for you JuneBug. Most people get tripped up on missing the brutal truth that a deduction never saves you as much as avoiding the thing in the first place - that is to say the deduction is never as big as the total cost. BTW, you even paid cash for your house?
> 
> For those of thus that financed these things, you certainly don't want to miss this deduction though.


I am with you on this one. I also agree wth JuneBug, and am with her on points. We have no debt short of the mortgage ( and now a small outback loan), and this probably will only be a few more years, however. With Mortgage interest, day care for 3, 3 children for deductions, charitable giving, property taxes....and I am sure I am missing some other reasons, we still itemize so.....might as well get it while I can. Hopefully, by the time we get the house paid off, the outback will have been free and clear and we can use the mortgage money to save up for the outback upgrade in cash. Of course I am still gonna have my 9 year old mortgage (Drew), 5 year old mortgage (Delaney) and 1.5 year old morgage (Courtney) but I see more return for my money in them than anything else of value I have.


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## Junebug (Aug 10, 2008)

No, we do have a small mortgage. We were not on the debt free lifestyle when we bought the house, but we have been making tripple payments for a few years now and the mortgage will die in 2.5 years! When we started this we had $80K in consumer debt, mostly student loans. We went completely crazy, came unglued even and paid the debt off in 18 months and WE ARE NEVER GOING BACK!!!! We lived on beans and rice during that time, but we became closer than ever, it actually tempered us, we worked this together, it was hard but worth it. We can make tripple payments on the mortgage now because we do not have any consumer debt (I should have been more clear earlier).

BTW...I now JuneBug sound like a screen name for a girl/lady, but I'm the 39 years old dad! :-0 My 5 years old little girl's middle name is Juen and she helped my pick out the screen name....I couldn't say no to her!!!!


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## GarethsDad (Apr 4, 2007)

Junebug said:


> No, we do have a small mortgage. We were not on the debt free lifestyle when we bought the house, but we have been making tripple payments for a few years now and the mortgage will die in 2.5 years! When we started this we had $80K in consumer debt, mostly student loans. We went completely crazy, came unglued even and paid the debt off in 18 months and WE ARE NEVER GOING BACK!!!! We lived on beans and rice during that time, but we became closer than ever, it actually tempered us, we worked this together, it was hard but worth it. We can make tripple payments on the mortgage now because we do not have any consumer debt (I should have been more clear earlier).
> 
> BTW...I now JuneBug sound like a screen name for a girl/lady, but I'm the 39 years old dad! :-0 My 5 years old little girl's middle name is Juen and she helped my pick out the screen name....I couldn't say no to her!!!!


 That also is my FIL nickname and he's in his 60's. His whole family calls him that. Story was that when he was a kid he swallowed a junebug. James


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## garyb1st (Dec 6, 2007)

jcat67 said:


> Of course I am still gonna have my 9 year old mortgage (Drew), 5 year old mortgage (Delaney) and 1.5 year old morgage (Courtney) but I see more return for my money in them than anything else of value I have.


Somehow those mortgages never get paid. In fact sometimes they grow. At least in numbers. One new daughter-in-law, one new son-in-law and one grand daughter.









Itemized deductions, $$$$ 
Standard deduction, $$$$ 
Personal exemptions, $$$$ 
Children, Priceless.


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## Nathan (Jan 2, 2007)

Junebug said:


> No, we do have a small mortgage. We were not on the debt free lifestyle when we bought the house, but we have been making tripple payments for a few years now and the mortgage will die in 2.5 years! When we started this we had $80K in consumer debt, mostly student loans. We went completely crazy, came unglued even and paid the debt off in 18 months and WE ARE NEVER GOING BACK!!!! We lived on beans and rice during that time, but we became closer than ever, it actually tempered us, we worked this together, it was hard but worth it. We can make tripple payments on the mortgage now because we do not have any consumer debt (I should have been more clear earlier).
> 
> BTW...I now JuneBug sound like a screen name for a girl/lady, but I'm the 39 years old dad! :-0 My 5 years old little girl's middle name is Juen and she helped my pick out the screen name....I couldn't say no to her!!!!


Now that's impressive!!!








I thought we were doing good by not having credit card debt.









However, I suspect there are a lot of companies out there that don't approve of your choice of lifestyle. You should really spend more time watching commercials and buying EVERYTHING that is advertised!!!


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## jcat67 (Aug 8, 2008)

Nathan said:


> No, we do have a small mortgage. We were not on the debt free lifestyle when we bought the house, but we have been making tripple payments for a few years now and the mortgage will die in 2.5 years! When we started this we had $80K in consumer debt, mostly student loans. We went completely crazy, came unglued even and paid the debt off in 18 months and WE ARE NEVER GOING BACK!!!! We lived on beans and rice during that time, but we became closer than ever, it actually tempered us, we worked this together, it was hard but worth it. We can make tripple payments on the mortgage now because we do not have any consumer debt (I should have been more clear earlier).
> 
> BTW...I now JuneBug sound like a screen name for a girl/lady, but I'm the 39 years old dad! :-0 My 5 years old little girl's middle name is Juen and she helped my pick out the screen name....I couldn't say no to her!!!!


Now that's impressive!!!








I thought we were doing good by not having credit card debt.









However, I suspect there are a lot of companies out there that don't approve of your choice of lifestyle. You should really spend more time watching commercials and buying EVERYTHING that is advertised!!!








[/quote]

I know this thread is completely spinning out of control but....I love playing the cc games. I like JuneBug had some cc debt after our first year of marriage, (16 years ago) and after a couple of years decided it had to go and paid it off and never looked back. I do however like to take play the game of getting "X" credit card, making the first purchase to get the bonus 25K FF miles (enough for a coach seat free) and then use the card (paying off monthly) until the first "annual charge" comes, then cancel the card. I also use a Sony card to build points which have assisted Santa in purchasing a Playstation 2, a digital camera, and is on its way to another SLR digital. I don't think the companies mind too much about us folks who pay our bills (they still get the 5% charge to the retailer....who is of course passing that along in the price of product) because we are generally the exception and they are getting their interest out of many others.

Heck, I made a bit of cash back in the day when MCI and ATT were fighting for customers and would send you a check to switch.....and I bet I am not alone.


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## having_fun (Jun 19, 2006)

If you want to limit the size of the government, the best thing you can do for this country is take as many deductions as possible!


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## Junebug (Aug 10, 2008)

jcat67,
Be careful, when you play with snakes you will get bit! Dunn&Bradstreet did a study that shows that most people (not you of course  spend at least 15-17% more on credit card purchases over cash! Most people do not experience the 'emotion' of the purchase with a credit card; trust me when you lay down a Ben Franklin to pay for dinner...it hurts a little inside!!  And believe you me, when I wrote that 5 figure check for my new Outback....well...all i can say is OUCH!!! Anyway, i never heard a millionaire say, "hey, you know what did it for me..it was the Discover Cards cash back", or "hey, those frequent flyer miles put me over the top, now I'm wealthy!!!" No, stay away from credit cards....don't you wish you just had the funiture those credit cards companies and banks have in their lobbies!!! Wake-up folks...these guys spend billions of $$ trying to figure out how to make us use their products..debt IS the most heavily marketed product in the history of modern times!!!


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