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

[PennyJ · Accepted solution]

Hello!

Thanks for your question.

A second home must have sleeping, cooking, and toilet facilities.  If your travel trailer meets these conditions, it can be a second home.  You can deduct interest paid on a loan used to purchase your second home. 

You can only deduct interest for two homes—your main home and a second home.  Real estate taxes or personal property taxes can be deducted on any number of homes.

You can enter both of these deductions under Federal Taxes > Deductions & Credits > Your Home.

I hope you find this answer helpful.  If you have additional questions or comments regarding this issue, please feel free to reply to this post for further clarification.

Thanks for trusting TurboTax with your tax preparation!

[jennysue1973]

If we have a rental property, would we still be able to deduct the interest on our RV loan, as a second home?

[newmexicocpa]

The above should read 'You can only deduct interest for two PERSONAL RESIDENCES—your main home and a second home'. A rental is considered business property rather than personal property, meaning that in your case all interest is likely deductible. Interest and deductions for a rental would be reported separately on Schedule E.

[kr4ftw3rk]

However, I would think a mortgage loan is different from a RV loan in that the mortgagee sends the mortgagor a Form 1098 listing the interest paid the prior year. I don't think a RV dealer financing a RV is obligated in the same way. So, how does one go about writing off the interest of an RV loan? Is the 'interest paid' calculated solely by the loanee?

[bowlingx10]

Do I ad a mother lender

[bowlingx10]

Do I add another lender

[bhrtj4]

Exctly, where and how do I enter in this information?  There is no separate line for another lender.

[bhrtj4]

Exactly, where and how do I enter in this information?  I can't enter in another lender.

[Riknbo]

Our RV is constantly kept at a members resort with dues storage cost.  Can I also write off storage costs, and membership due which is a requirement to also store our RV.?   thanks

[SonomaRik]

I am not responding with an answer but an addendum:   We also have our NEW RV at a resort that we pay storage and need a higher level membership to even be considered for storage.  Additionally, we pay to have it moved per visit.   Not to mention registration fees, insurance etc.  

Are these other item also allowed for deductions?

[macuser_22]

@SonomaRik Just like a first home, the only Federal deduction for a home or RV (if the RV meets the requirements to be a home) is the interest deduction on a mortgage that finances the RV and property tax (if any).   Those are Schedule A itemized deductions.  Both mortgage interest and property tax have caps.

For 2018 and 2019 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage insurance premiums. The itemized deduction for mortgage insurance premiums expired on December 31, 2017.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

2018 standard deductions

$12,000 Single
$18,000 Head of Household
$24,000 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,600 if the taxpayer is also unmarried.

2019 standard deductions

$12,200 Single
$18,350 Head of Household
$24,400 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

[chale1934]

We have our homestead, rental home and travel trailer. It states we can only deduct two homes, is the rental taxes tax deductible and is it considered the second home?

[DoninGA]

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@chale1934 wrote:

We have our homestead, rental home and travel trailer. It states we can only deduct two homes, is the rental taxes tax deductible and is it considered the second home?

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The rental property is not a second home if you do not use the property as a personal residence during the year.

The trailer can be a second home if it can be classified as a dwelling unit.  A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities

You can deduct any interest paid on a loan for the trailer as an itemized deduction on Schedule A.  You can deduct on Schedule A any personal property taxes paid on the trailer if the taxes are based on the value of the trailer.

You cannot deduct any insurance you have on the trailer just as you cannot deduct homeowner's insurance on a personal residence, not used as a rental or in a business.

[SonomaRik]

Thanks for the response.  Will have to do the exercise to understand if it is a viable deduction for us:  great response.