Deductibility of interest on a loan for a travel trailer

[hoopsluvr]

Was wondering if interest on a loan for a travel trailer is deductible???

[AmyC]

Maybe, and only if you itemize. If it qualifies as your second home, then the interest is deductible on sch A, itemized deductions..  About Schedule A (Form 1040), Itemized Deductions - Internal Revenue Service says: 

A home mortgage is any loan that is secured by your main home or second home, regardless of how the loan is labeled. It includes first and second mortgages, home equity loans, and refinanced mortgages.

A home can be a house, condominium, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleeping space, toilet, and cooking facilities.

See also Top Standard vs. Itemized Deduction FAQs  

[hoopsluvr]

This is a small trailer, more for camping.  But it has a full bathroom and a kitchen.  Would qualify as a 2nd home?

[JohnW152]

As you describe it, your trailer would seem to qualify.

There’s no reason it can’t qualify as a second home, if you choose to treat it as your second home.  See Qualified Home in IRS 2021 Publication 936 for more information on what homes qualify for the deduction.

As Expert AmyC notes above, a home can include a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.  

And bear in mind that home mortgage interest is any interest you pay on a loan secured by your home – your main home, or a second home.  The mortgage must be a secured debt on a qualified home in which you have an ownership interest.

[hoopsluvr]

Thanks!!

[edsmunoz]

Hello,

Where in Turbo Tax do I make the entry for the loan interest, as it is not on a 1098 Mortgage form but on a Notice of loan interest from Bank.

[Vanessa A]

You would enter it in the same area as the 1098 just using the numbers from the Notice of loan interest to fill in the numbers instead of the actual 1098 to fill in the numbers. 

After you enter the information in the form area, you will then check the box that says this is a second home (if it is not your primary home) and continue through.