2017 RV Tax Deductions
Taxes pave our roads and keep our national parks pristine (two things near and dear to RVers’ hearts). They’re also a major pain in the wallet.
But there’s good news for RV owners! Uncle Sam offers some generous tax deductions for RV owners. Keep reading to find out about how your RV can save you money on taxes in tax year 2017.
Note: We’re not accountants or financial experts. (If we were, we’d advise ourselves to spend less on late-night Amazon purchases. But what can you do?) If you have any questions, we recommend that you speak with an accountant or tax specialist who can help you unravel the specifics of your personal financial situation.
That being said, here’s what we think you should know about RV tax deductions:
RV As A Second Home
Unlike the interest on other loans (like auto, credit card and discretionary loans) home mortgage interest is considered a qualified tax deduction. And so is RV loan interest — if your RV meets certain specifications!
A camper or RV meets the IRS definition of a second home if it meets the following criteria:
- You can sleep in it.
- You can cook food in it.
- It has a bathroom.
Or, as IRS Publication 936 puts it:
“A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.“
If you bought your rig using an RV loan and it meets the requirements above, you can deduct your interest payments on your taxes.
And yes, if you live in your motorhome full-time, your RV qualifies for primary home ownership tax deductions.
Does a the vehicle I use to tow my RV qualify for this tax deduction?
No, your truck doesn’t count as a second home, no matter how much time you spend in it.
In fact, under the newly passed tax reform bill, towable RVs themselves are ineligible for the tax deduction we just mentioned.
The Tax Reform Bill Removes The Tax Benefit For Towable RVs
Overall, the tax reform bill is expected to benefit the RV industry, according to the Recreation Vehicle Industry Association (RVIA).
However, the new bill replaced the previous wording that allowed for towable RVs with the phrase “any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road.”
In other words, owners of travel trailers and fifth wheels will no longer be able to write off their RV loan interest as a tax deduction.
Thankfully, the old rules still apply for the 2017 tax year, so owners of travel trailers, fifth wheels or other towable RVs may still be able to write off their RV loan interest this year.
More good news: If you bought your towable RV in 2017, you may also qualify for a sales tax deduction.
RV Sales Tax Deduction
If you recently purchased an RV, you may be eligible for a sales tax deduction — yes, even if you paid in cash and don’t pay loan interest (look at you go!).
Of course, you can’t deduct a tax that you never paid, so if you bought your RV in a state without a sales tax, your purchase won’t qualify for this deduction. Only five states do not have a sales tax:
- New Hampshire
Tax Deductions For Business Expenses
If you use your RV for business or work out of your RV on a regular basis, you may be able to write off your business expenses.
There are tons of tax deductions available to small business owners, including your home office, office supplies, insurance premiums, mileage and travel.
Tax Benefits For Renting Out Your RV
Renting out your RV on a marketplace like Campanda is a great way to earn extra income. It can also help you out around tax time.
If you rented your RV out this year, you may be able to deduct expenses like depreciation, insurance, maintenance and repairs.
More RV Tax Write Offs
Your RV may qualify you for even more tax deductions.
Every person’s financial situation is different, so we highly recommend that you check with a tax specialist or accountant (because again, we’re neither of those things) to find out where and how your RV can you save money on your 2017 taxes.
If you find yourself owing money to Uncle Sam:
Consider renting out your RV for an easy — and safe! — source of extra income in 2018:
Disclaimer: The information in this article is intended solely to provide general guidance and should not be considered professional legal advice. While we have done our best to ensure that this article is accurate, Campanda is not responsible for any errors or omissions. The reader assumes full responsibility for the use of the information provided. The reader should always consult professional advice before making any decision or taking any action.