Sprinter Van conversion as second home for taxes

Forum|Forum|3 years ago
March 25, 2023
4 replies
50 views

We have a Sprinter van that has been converted. I am wondering if this can be considered a second home for taxes. In particular, for Mortgage interest deduction and Solar tax credit. Based on my reading of:

Publication 936 (2022), Home Mortgage Interest Deduction

Qualified Home

A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

Is there any further guidance from the IRS regarding this topic, as far as the "precise definition" of sleeping, cooking, and toilet facilities?

For example, is a cassette toilet (portable toilet) considered "toilet facilities"?

I have read online that facilities need to be "permanently attached" but I dont see that anywhere in the IRS definition.

Thanks for any assistance.

PattiF

Alumni - Intuit

Based on what the IRS says about the solar credit and the mortgage interest deduction, it seems as though your Sprinter Van conversion is qualified as a second home for taxes.

There does not seem to be any additional information from the IRS about what constitutes a Qualified Home. By definition, the Sprinter Van conversion does seem to qualify as a qualified home as a second home.

"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."

From the instructions for Form 5695, energy credit

If you made energy saving improvements to more than one home that you used as a residence during 2022, enter the total of those costs on the applicable line(s) of one Form 5695. For qualified fuel cell property, see Lines 7a and 7b, later.

From IRS Publication 936:

Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, or a second mortgage.

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cdrunnerAuthor

Level 2

Thanks for your helpful response. My reading of the IRS definition of a "qualified second home" concurs with yours.

I have found no further details on what specifically constitutes "facilities" which is a very general term.

Has anyone else had experience or thoughts regarding RV or Van conversions as a "qualified second home" for tax purposes?

Thanks again @PattiF!

JosephS1

Alumni - Intuit

Yes, from what was stated above, it does appear that your Sprinter Van Conversion does qualify as a second home. The main point of concern seems to be the portable toilet. Below are 2 links that I believe can assist you should it be questioned as to if it qualifies as a second home. One is from TurboTax, and the other is from a legal perspective:

RV as a second home per TurboTax

Legal perspective of portable toilet

@cdrunner

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