Write It Off…Yes You Can
03-03-2016
Second Home Deduction
It is obvious that if you are a full time RVer you can use the interest you pay on your RV loan as a tax write off. However, you can do the same if your RV is your second home. This is something that many are unaware of. The law on second homes simply states that to qualify as a second home your living space must contain a sleeping area, bathroom facility, and a kitchen. We all know that puts every RV owner into the second home status. Ask your loan company to give you some documentation on the total amount of interest you paid that year as well as the amount of sales tax you paid, and you have your second home write off.
Business Expense
Do you own a small business? Do you have a pastime that can be easily converted into a profitable business venture? Do you travel for business and do the majority of traveling in your coach? Viola, a small business tax write off. As a small business owner you can write off any expense that your business requires to operate. It is best to see an accountant to be sure that your “business” receives all of the deductions that are there for small business owners. Even if you are only using your coach to transport employees from place to place, there are deductions for that as well. Check out this blog about Earning a Mobile Income for Ideas on making money on the road.
DMV Deductible
Okay, so I know what you are thinking…a DMV write off…seriously? Yes, a DMV write off. In some states you pay a sort of personal property tax on any property that you own. Although, this tax is not always applied to your coach, it may be added on to your vehicle registration each year. This too will become a legitimate write off.
There are so many deductions you can utilize if you are willing to do the research. My perspective is that it will definitely be in your best interest to hire an accountant in order to guarantee the accuracy of your filing. I also strongly feel that paying taxes is our civic duty as Americans. However, it does not hurt to look into your legal right to use legitimate deductions to your benefit. To do more research yourself log-on to: www.irs.gov and take some time to read the various laws that apply to the topics above and more. Who knows, you may even find a few more little deductions you can squeeze out of your coach. Good luck and as always Happy Trails!
Comment
Be very, very careful using an RV for a business deduction. There have been a number of cases where the taxpayer had what would seem like a legitimate reason for writing off the RV only to lose in court. In the case of one couple, they lost based on there being no "separate and distinct" office area. Another couple lost who was writing off all of the RV expenses against their insurance business which specialized in RV insurance.
While there are some good tips here, overall this is risky advice. There are tons of nuances to tax deductions and the RVing lifestyle, and the IRS is calling people on it all the time. Among other red flags: it's not as simple as calling it a second home and no you cannot deduct all of your business expenses on the road. Few tax professionals understand the needs of full-timers who work and live on the road. To avoid a phone call from the IRS I encourage folks to ask fulltimers within the RVing community to find a CPS/accountant who understands this unique living situation before attempting any write-offs like this.
Author: Tammy Daly
