By Neil Seidler, CPA, CMA
Is interest on an RV loan tax deductible? 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?”
How an RV can qualify as a second home
To qualify, the RV must have sleeping, cooking and toilet facilities. So most Class A, B and C motorhomes, fifth wheels and travel trailers should qualify. In addition, the mortgage or mortgages must be a secured debt (meaning that your home or the RV is used as collateral for the debt). Also, the 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.
We welcome your questions and inquiries. If you have tax-related questions, or any other questions that we may be able to address, please email us or comment below and we’ll try to answer them in a future article.
If you need assistance with your tax filings or other accounting matters please feel free to contact me. I’m happy to help. You can email me at Neil@profitprocpa.com. My business website is ProfitPro Accounting and Tax, or call my office at (702) 754-1338.
We present this material for informational purposes only. It is not intended to provide, and should not be relied on, for tax, accounting or legal advice. Therefore, readers should consult their own tax, accounting and legal advisors to discuss their own personal matters.
Read Neil’s most recent post: It’s tax time again – Getting prepared
Neil, please reply, I’m curious as to what your response is to several of the commentors replies.
You really need to brush up on the meaning of the word ” mortgage “. A mortgage is a loan on REAL PROPERTY. Last time I checked, RV’s are not defined as real property in the code. Care to rethink this one!
I thought the definition changed in “16 so that trailers and 5th wheels no longer qualified?
. Thru bank of the west we financed our rv just for the deduction,, per our accountant. It has helped a lot with our taxes. Also bank of the west gives us $ 15 / month for using their debit card. Considering the amount of interest over the years vs. paying higher taxes it does make a difference.
I use this deduction, however, We owe so little on our home and RV, the deduction does NO GOOD to reducing my tax bill!