Is interest on an RV loan tax deductible?

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By Neil Seidler, CPA, CMA
Like most areas of taxation, the answer to this question is “it depends.” But it’s entirely possible you can deduct the interest on your RV’s loan.

You can take a deduction for home mortgage interest for your main home and for a second home. So, the question is, “Does your RV qualify as a second home?”


To qualify, it needs sleeping, cooking and toilet facilities. So most class A, B and C motorhomes, fifth wheels and travel trailers should qualify. The mortgage or mortgages must be a secured debt (meaning that your home or the RV is used as collateral for the debt), and your total mortgage principal on your first and second homes cannot exceed $750,000 before limitations apply.

Another factor is that to claim the mortgage interest you must itemize your deductions. Only about 30% of taxpayers do that. Most take the standard deduction, so that needs to be examined closely by your professional tax advisor.

Neil Seidler CPA, CMA has served businesses and individuals across the USA and Canada for 35 years. As an avid RVer and recent full-timer he has a unique perspective on RV tax issues. Contact him at TheRVTaxGuy (at) gmail.com .

The material presented here is for informational purposes only, and is not intended to provide, and should not be relied on for tax, accounting, or legal advice. Readers should consult their own tax, accounting, and legal advisors to discuss their own personal matters.

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Joseph Lopez

Just wanted to thank you Neil for the information and follow up to the questions asked. You’ve taken the time to write the article and more of your time to answer questions, provide feedback and references. Much appreciated

Kevin

Would the author please post some citations to support this? There should be an IRS publication that can be used to support this (include date of pub and page numbers for reference) thanks

Ron

In accordance with the Trump tax laws the became effective 1 Jan 2018, non-motorized rv’s are no longer included in this deduction. So those of you with trailers (of any type) are out of luck.