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oknatsb69
New Member

I took out a home equity loan on my primary residence to purchase an RV that has a bathroom, kitchen, etc. Can I deduct the interest on this loan when filing my Federal income tax?

 
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2 Replies
Vanessa A
Employee Tax Expert

I took out a home equity loan on my primary residence to purchase an RV that has a bathroom, kitchen, etc. Can I deduct the interest on this loan when filing my Federal income tax?

No.  You cannot deduct the interest on the home equity loan that you used for anything other than to buy, build or substantially improve the home that the loan is secured by.  If you would have taken out a new loan that held the title for the RV until the loan was paid off, then you would be able to deduct that interest on that loan, but you cannot deduct it as it currently stands. 

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I took out a home equity loan on my primary residence to purchase an RV that has a bathroom, kitchen, etc. Can I deduct the interest on this loan when filing my Federal income tax?

It's not deductible as a mortgage on the RV, because the loan is not secured by the RV.  And it's not deductible as a mortgage on your main home, because it was not used to buy or improve your main home.  

 

If the balance includes a balance brought over from a prior mortgage that was used to buy the home, then part of the mortgage is deductible.  For example, if you bought the home with a $100,000 mortgage, and the balance was down to $90,000, and then you refinanced for $150,000, then the $90,000 that came from the original purchase is still deductible (60% of your interest in this example).  Turbotax should help with that calculation. 

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