We have a fifth wheel trailer. Can we deduct the interest on the loan as a second home?

[PandoraS · Accepted solution]

You may be able to deduct the interest on the loan of your fifth wheel trailer for federal tax purposes.  A boat or a recreational vehicle can be either your main or secondary residence, entitling you to take advantage of the same tax deductions as a homeowner of a typical house.

The Internal  Revenue Service (IRS) defines a home broadly, allowing the term to encompass:

• Houses
• Condominiums
• Cooperatives
• Mobile Homes
• RVs
• House Trailers
• Boats

The test the IRS applies is simply that the property must have all three:

• sleeping, cooking and toilet facilities

If so, it can be treated as a primary or secondary residence for tax purposes.