Seems the new Tax bill has a few surprizes in it.

[carl2591]

this is from RV live article.

http://rvlife.com/new-tax-bill-2018/

seem towable RV owners got the screws.. but the motorhome etc got a break.

[KJRitchie]

In 2016 I wasn't able to itemize even with a house with a $125k balance. Even with the interest on my Airstream I wasn't able to itemize on top of my house interest so I paid off my Airstream. In Sweden if you are totally on welfare you still pay taxes. Everyone should have skin in the game.

Kelvin

[Al and Missy]

Not sure what the definition of a motor vehicle has to do with anything. Interest on RV loans is deductible as a second home. Interest on motor vehicle loans was only deductible for businesses. I'll admit I haven't read the bill, and it remains to be seen what the implementing IRS regulations will say, but it would seem to me that for most of us the deductability, subject to a dollar limitation, would not change.

Al

[Countryboy59]

It'll be fine.

[malinois38]

If anyone took out a Home Equity Line of Credit for their AS, they will NOT be able to write off the interest in 2018.

[Iansk]

Originally Posted by Countryboy59

It'll be fine.

How so?

[Dan and Liz]

Al and Missy look correct to me. If you have sleeping, cooking and bathroom capability it qualifies as a second home. And the rules for HELOC deductibility haven’t changed as far as I know. But with the standard deduction doubling, it just might not make sense to itemize ...

[Dan and Liz]

By the way — most folks’ first homes aren’t self-propelled, either. I think whoever wrote this article is wrong — bigly.

[malinois38]

Originally Posted by Dan and Liz

Al and Missy look correct to me. If you have sleeping, cooking and bathroom capability it qualifies as a second home. And the rules for HELOC deductibility haven’t changed as far as I know. But with the standard deduction doubling, it just might not make sense to itemize ...

Yes, as stated earlier the rules for HELOC have changed for 2018. You cannot write off the interest.

[rideair]

I don't really understand the math of having to borrow money to buy a trailer, so don't really understand having the need to write-off the interest.

Kinda like a car loan, borrow money on something the goes down in value when driven off the lot, to pay interest on the money to buy it and by the time it's paid-off is worth at best .50 cent on the dollar paid, plus the personal property taxes (live in VA) on it each year as well.

My aunt once told me, if you can't pay cash for your car and toy's, you can't afford them. A rule that I have lived by for over 20 years, but then again my 2002 Excursion has 400K miles. But I don't have a payment.

[CRH]

What he said...^

[Dan and Liz]

Originally Posted by malinois38

Yes, as stated earlier the rules for HELOC have changed for 2018. You cannot write off the interest.

Oops...

[Countryboy59]

Originally Posted by Iansk

How so?

Standard deduction doubles. Actually makes things simpler. And no more ACA fine.

I'm sure they'll fix the "towable" exclusion, if there is one.

[perryg114]

Why would you buy an RV with a loan in the first place? It is a toy not a necessity.

Perry

[Wayward]

Originally Posted by rideair

I don't really understand the math of having to borrow money to buy a trailer..

Here is some math (plus/minus a thousand bucks or so)......

- We bought our new Airstream SE in 2006 for about $40K. Equivalent model today is about $90K. That is an average price increase of about $4.6K/year.

- We got a low interest loan and paid it off in 4 years, giving us an acquisition cost of about $42K.

- Had we saved for 4 years, Airstream price increases would have resulted in a 2010 acquisition cost of about $58K.

So..... by buying in 2006 we "saved" about $18K and got to enjoy our Airstream for 4 years longer than had we used a savings account to buy.

[Mollysdad]

Can we be honest?
We're in this financial mess because congress tries to hand out cash to everyone. Except they're broke.
In reality, there should be no deductions and no exemptions to the tax code. Then the rates should be much lower. (Taxing income at all is another discussion for later).
I'm amazed when people are given the choice of 30% tax and an interest deduction vs. 20% tax and no deductions, they pine for their deductions.
Why should the government reward people buying something they can't afford (int. ded.) while at the same time punishing them for saving money (tax on int.)?

We're dealing with people who get excited because they got a big refund!!!!

[PaulnGina]

Originally Posted by rideair

I don't really understand the math of having to borrow money to buy a trailer, so don't really understand having the need to write-off the interest.

Kinda like a car loan, borrow money on something the goes down in value when driven off the lot, to pay interest on the money to buy it and by the time it's paid-off is worth at best .50 cent on the dollar paid, plus the personal property taxes (live in VA) on it each year as well.

My aunt once told me, if you can't pay cash for your car and toy's, you can't afford them. A rule that I have lived by for over 20 years, but then again my 2002 Excursion has 400K miles. But I don't have a payment.

What he said x2!

[Tincampers]

Originally Posted by Countryboy59

Standard deduction doubles. Actually makes things simpler. And no more ACA fine.

I'm sure they'll fix the "towable" exclusion, if there is one.

Off set by the elimination of the personal exemption.

[Boxite]

Originally Posted by Mollysdad

....
Why should the government reward people buying something they can't afford (int. ded.) while at the same time punishing them for saving money (tax on int.)?

...!!!!

Well, FIRST of all, ... YOU don't know that someone can't afford something simply because they chose to finance it. They might have plenty of assets and net-worth but choose to keep it invested than draw on it.

SECONDLY, ... DOUBLE TAXATION is simply wrong. If the interest is INCOME to someone else who must pay taxes on that income... then it seems wrong to tax it twice by not exempting that money from the tax-burden of the borrower.

If we are to overhaul the tax-code... then I think we should get rid of the tax-advantaged status of so-called religious groups and "churches". If I get a deduction for titheing... then the church should pay income tax on it and property tax on the church's real estate investments.

As for welfare in Sweden... I hate to tell you this but such income is also taxed here in the U.S. above the standard deduction. I don't know of any welfare recipients who cannot meet a standard deduction. It seems wrong to me that SS recipients must pay income tax on their SS income if that's the main source of their support, and if it's not the main source of their support then SS should be paid them.

The best solution is to allow a reasonable standard deduction and tax everything else without regard. IMO If I make the money and live in this country, then I should support the general welfare by paying a fair share of taxes...and rich folk have no need of my picking up their tab.

RV housing is similar to pre-fab housing if used similarly, and will be taxed accordingly in the new code. But RVs have skipped paying school and other local taxes in so many cases that the code should be completely re-vamped to disallow that. A co-worker of mine moves his RV from camp to camp while his kids attend public school on the local taxpayer dollar. He pays no local taxes and I wonder about that. (But I suppose the campground does, so maybe that's a "wash".)

[Countryboy59]

Originally Posted by Tincampers

Off set by the elimination of the personal exemption.

Step in the right direction. Maybe we can get a flat tax someday.