Yes, you can deduct the interest paid on a Motorhome (RV), but NO, it doesn't go under "Car Loan Interest." The IRS treats a qualified RV as a Second Home.
For your Motorhome to qualify, it has to have sleeping, cooking, and toilet facilities.
The bank won't send you a form but you enter it manually as a home loan.
- Go to the Deductions & Credits tab.
- Find the section for "Your Home" and select Mortgage Interest and Refinancing (Form 1098).
- Even though you don't have a 1098, click "Yes" when asked if you paid any home loans.
- When asked for the lender's name, enter "Bank of America (RV)".
- On the screen where it asks for Form 1098 details, enter the interest amount from your letter.
- TurboTax will ask if this is a boat or RV; select Yes.
Under the "Cars and Other Things You Own" section you can deduct the Personal Property Tax or Registration Fees you paid to the DMV for the RV (and any other vehicles you own), as those are separate from the loan interest.
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