How do i claim my recreational rv travel trailer as a second home

[Cstephens1019]

Hi I have a personal loan for my camper and not a mortgage. I tried entering the interest paid and it's telling me it's not deductible. Why can't I claim this deduction?

[Vanessa A]

What is the exact wording telling you it is not deductible?  If you are entering it as a second home, the interest on an RV is deductible.

There are other reasons that you may not be getting the mortgage interest deduction such as:

• Your total itemized expenses are not more than your standard deduction
• Your RV loan is not secured by the RV
• Your total home loans are greater than $750,000 so the interest has been capped

If none of these reasons apply, you can go back through and double check your answers to see if a question was erroneously answered. 

[SweetieJean]

Does your camper have kitchen, sleeping, and bathroom facilities?  It needs those to qualify as a second home.

[edsmunoz]

I have same issue and to no avail have tried repeatedly to enter in the 1098 area as you recommend and it will not accept in this area.   The loan was  paid off in 2021 so there is no balance.  This interest is not reported on a 1098 it is a loan for RV second home.  It appears like Turbo Tax has  NOT made an allowance for this type of entry because following screens  for 1098 does not match this information which is specific to a 1098 form only. Please help.

[DMarkM1 · Accepted solution]

You should enter your loan information as if from a form 1098. 

1. Enter the mortgage interest you paid in the tax year in box 1.  
2. Box 2 is the outstanding balance at the beginning of the tax year.  
3. Box 3 is the date you took out the loan.  
4. Do not check box 7 
5. On the next page confirm it is "a property you own."  
6. Select "Second home" 
7. Select "Deducted all the points or didn't pay points"  
8. Answer "Yes" it is the most recent 1098  
9. "Yes" it is the original loan

Edited [4/23/2024 12:26 PM PDT]   

[edsmunoz]

This worked! Thank you!  Was able to complete this entry with more confidence because you provided a step by step instruction! 

[edsmunoz]

Tried to marks this as "BEST ANSWER" but couldn't find how to do this.

[Munzter1]

How do i claim the interest on a RV loan if the leader does not send a 1098 tax form?

[DoninGA]

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@Munzter1 wrote:

How do i claim the interest on a RV loan if the leader does not send a 1098 tax form?

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In the Mortgage Interest section when asked if you received a Form 1098 answer yes and then complete the mortgage interest section.  If you are using the RV as a second home make sure you indicate that when asked in the interview.  You will Not be asked for the name of the lender.

Online returns -

Enter form 1098 in the Search box located in the upper right of the program screen. Click on Jump to form 1098

On the screen Did you pay any home loans in 2022? select Yes

On the following screen click on Continue

On the screen Let's import your tax info click on Change how I enter my form

On the screen How do you want to enter your 1098? click on Type it in myself

[kotcha]

Yes because your rental property goes on Schedule E

[Scotch49]

I understand a motorhome can be considered a second home and buying cost, property taxes, and mortgage interest can be deducted. Can you deduct enhancement costs such as recovering furniture, refurbishing the roof covering, and appliances? Thank you

[JulieS]

No, you can't deduct refurbishing costs, or the cost of buying the motorhome, unless it is a property used in your business. 

You can consider it a second home and deduct mortgage interest (subject to limits) and personal property tax the tax is based on the value of the motorhome. 

[jgrimes295]

@DMarkM1 I see that you answered this question some time ago so I wanted to ask if the RV as a second home qualifications have changed since 2021?

I'd also like to ask a follow-on question if you have a moment.  Regarding the RV:  As a 100% teleworker, would I would very likely be working from the RV a large percentage of the year.  Would I still be able to use the home-office deductions that I currently use for my office at our brick-and-mortar home?  Since that's usually a calculation based on square footage, and I'd likely be working from both our home and the RV, I'm curious to hear how that could be calculated.

Thanks in advance for any opinion you may have on this.

[Opus 17]

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@jgrimes295 wrote:

@DMarkM1 I see that you answered this question some time ago so I wanted to ask if the RV as a second home qualifications have changed since 2021?

I'd also like to ask a follow-on question if you have a moment.  Regarding the RV:  As a 100% teleworker, would I would very likely be working from the RV a large percentage of the year.  Would I still be able to use the home-office deductions that I currently use for my office at our brick-and-mortar home?  Since that's usually a calculation based on square footage, and I'd likely be working from both our home and the RV, I'm curious to hear how that could be calculated.

Thanks in advance for any opinion you may have on this.

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Nothing has changed in the tax law regarding deducting the loan interest on an RV as interest on a second home for the itemized deduction for mortgage interest.  Note that the loan must be secured by the RV; an unsecured loan, credit card loan, or other loan not secured by a lien on the RV is not eligible for the mortgage interest tax deduction.  If you are in a state that charges a personal property tax, you can deduct all your personal property taxes up to the $10,000 cap on all state and local taxes (SALT).

The problem with using an RV as your place of business is the requirement to use your home office exclusively for work.  The exclusive requirement is fairly easy to meet if you have a spare bedroom that you set up as a home office, and never use except for business (no personal use).  If you had an RV parked on your property and the RV was your exclusive home office, you could deduct your expenses.  But if you have an RV that you use for personal travel and work, could you honestly say that a portion of the RV is set aside exclusively for work?  Also, your home office must be your regular place of work, and you can only have one regular place of work.  If you have an office in your house, you can't also have an office in your RV, because you can't have two regular places of work.  

[jgrimes295]

Thanks for that response!  Always good to know what I can and can't do.

-Jim