Can You Deduct Your Interest Payment from Your RV Loan on Your Taxes?
Taxes and Accounting for Full-Time RVers Working on the Road
Can You Deduct Your Interest Payment from Your RV Loan on Your Taxes?
By Adam and Lindsey Nubern
DISCLAIMER: The information and materials we share in this article are intended for reference only. As the information is designed solely to provide guidance to the readers, it is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations. Therefore, we strongly encourage you to seek the advice of a professional to help you with your specific needs.
This is a super common question from full-time RVers: Can we deduct the interest from our RV loan on our taxes like we would if we had a normal house mortgage loan?
Good news y’all! The short answer is yes.
The Reason You Can Deduct Your RV Loan
The IRS says, “For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat or similar property that has sleeping, cooking and toilet facilities.”
So, if your RV has these three categories that make up a home (sleeping, cooking and toilet facilities), you can deduct your interest paid on your RV loan.
Limitations to Why You May Not
Can Only Deduct Two Homes at Once
The first limitation is you can only deduct your first and second home at one time. If your RV is a third home, then you’re not able to make the deduction.
Portable Toilet Facility
For all the #vanlifers out there with a portable toilet, this is a tricky decision. If you were to get audited by the IRS, we can’t guarantee they’d view your portable toilet stashed in a cabinet or under the bed as a legit toilet facility. However, to our knowledge, there hasn’t been a tax court case that’s set precedent here. As always, these rules are up to interpretation!
Where to Make the Deduction on Your Taxes
So, where do you make this deduction on your taxes?
First, you’ll look to see what the total amount of interest you’ve paid on your loan for the year is. You normally get this information in early February when the bank sends you Form 1098 about your loan payments. On this form, look for Box 1. The number there shows you how much interest you’ve paid during the year.
Then, on your Schedule A tax form, you’ll take your interest paid amount and put the number on Line 10.
Or, if you have a CPA you work with during tax season, make sure you share your Form 1098 with them and request them to deduct the interest from your RV loan.
Happy deducting y’all!
Want to Talk to a CPA about Your Unique Situation?
Everyone’s situation is different. You can ask questions and get clarity on if you can deduct the interest from your RV loan with a CPA.
Xscapers works with Adam Nubern of Nuventure CPA. You can send Adam a quick note here.
DISCLAIMER: The information and materials we share in this article are intended for reference only. As the information is designed solely to provide guidance to the readers, it is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations. Therefore, we strongly encourage you to seek the advice of a professional to help you with your specific needs.
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Hello Adam – I’m actually wondering if we can take the IRS deduction beyond just deducting interest on the RV and deducting the entire loan amount both principal and interest over a period of time as it does exceed the GVW gross vehicle weight requirements. For example we own a house in Hilton head but my landscape business is in Pennsylvania. We drive our car to Pennsylvania to get to work and while here we drive it from where were staying every day to the shop and conduct virtually all business related activities with our vehicle and therefore all of the mileage is deductible. Often times in real estate for example you have to log personal miles separate from professional miles. With the case of an RV if we are basically driving to work for example from one workstation in the Braska to another one in Texas then I would assume although I’m asking you for this advice that since were using it to gain income that all miles would be related to work and therefore a large percentage if not all miles for each year in the RV are dedicated to work. Hope you get the gist of this. You’re welcome to call me I’d love to hear from you. I’m out in the field right now most days with my crew from 630 until 730 at night but I am available between noon and 1230 noon every day Eastern standard time.
Hi Steven!
Quick note- we deleted your contact information from the end of your comment to help protect you from spam crawlers and such. However, give the detail of your situation, it would be best for you to talk directly with Adam. You can reach him via his website http://www.nuventurecpa.com/contact
Does this only apply if you have a house AND a RV that counts as a 2nd home?
What if you sell your house and just have the RV. Can you still deduct your interest from the RV loan by itself?
Great question! You can reach Adam directly via his website http://www.nuventurecpa.com/contact to get answers specific to your situation.