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Rick_S
Level 2

RV (Fifth Wheel) deductions for business (Full time RV'rs)

We travel from RV park to RV park, staying for 2 weeks, and doing marketing for the RV parks & resorts.
1099 through the company I am contracted with. I am self-employed and pay for all of my own expenses, with the exception of the free site that is given for 2 weeks at each park. My wife is self-employed with her medical billing business (also 1099 contracted employee). Our fifth wheel is our main and only residence all year.
How would I enter expenses for our fifth wheel? Home deduction for both businesses, or take the fifth wheel as a business expense for my business, and depreciate? Ours is a rare circumstance, and I can't find any info on how to proceed with our taxes.

3 Replies
AmyC
Employee Tax Expert

RV (Fifth Wheel) deductions for business (Full time RV'rs)

This is a very gray area. Clearly, you are using your RV for business. That indicates mileage between parks and depreciation of the RV.

 

However, since it is your main home. a business office can be tricky. You would have to have an area designated for regular and exclusive use to claim home office. See Can You Claim a Boat or RV as a Primary Residence ... Your RV is a business asset while being your home. See Publication 587 (2018), Business Use of Your Home | Internal ...

 

Your RV is your business lodging. You need to keep track of business nights use for business lodging.

 

For the business car section, add everything like you would a car;

  • Motor oil
  • Gas
  • Car Washes
  • Tires
  • Licensing Fees
  • Property Tax
  • Parking
  • Tolls

For more on depreciation:  26 U.S. Code § 280F - Limitation on depreciation for luxury ...

 

 

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Rick_S
Level 2

RV (Fifth Wheel) deductions for business (Full time RV'rs)

Hi AmyC,

Thanks for the response. I don't believe I can use it under business vehicle expenses. It is a fifth wheel that we tow with my truck.  I am wondering if I should just depreciate over 5 years as a business property asset deduction. We will probably trade in after 5-7 years. Home office seems touchy for RVers.  I also think I should list it as 50% for business, since we eat, sleep, shower, and watch tv in it. Any suggestions?

 

ThomasM125
Employee Tax Expert

RV (Fifth Wheel) deductions for business (Full time RV'rs)

For a home office deduction, the space would have to be used 100% for business, so that is a non-starter.

 

You are allowed to deduct the business use of a vehicle even if it is also used for personal purposes. Thus, if you can segregate personal mileage from business mileage, you could deduct a portion of the cost of the truck you use to travel from one park to the other.

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