Financing Travel Trailer as 2nd Home Tax Deduction
Greetings to all!
I am new to the forums, but have been reading for a while. My husband and I are researching and shopping for our first Aistream, and we have acquired a lot of INVALUABLE information just by reading what you all have shared about your Airstream experiences! What a terrific resource you all are!
Well, here is my first question. Someone mentioned to us that whatever financing we get to purchase a trailer or motorhome can be declared in our tax deductions as though it was a 2nd home - so long as the trailer or whatever is a self-contained unit. Does anyone know if this is true? (We have a call in to our tax accountant, but, wouldn't you know it, he's out of town on vacation right now, so we haven't heard back with an official answer.) Anyone out there who itemizes deductions have any experience with this?
Mrs. Silverback, yes, if it self-contained and has it's own loan BUT qualified yes on using a home equity loan. Your mortgage and equity loan on the "home" are limited to some extent--can't add up to more than--here's where Brenda, my accountant, is not certain--the value or appraised value of "the home". Both state and fed tax deduction as 2nd home are OK.
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Kistler
Brenda
Misty (Maltese)
Maxwell (grey tabby)
2002 Classic 25'
2003 Expedition EB 5.4L, AWD, AdvanceTrac Class IV hitch pkg. Reese dual cam/Prodigy
Re: Financing Travel Trailer as 2nd Home Tax Deduction
Quote:
Originally posted by Mrs Silverback Greetings to all!
Anyone out there who itemizes deductions have any experience with this?
Thanks in advance!
Mrs. Silverback
Phoenix
Yes I itemize, and a loan secured by the trailer is deductible. If I remember the real key is having the bathroom. I remember that some boats have the same status because they are self contained.
Jack
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Jack Canavera
STL Mo. AIR #56
'04 Classic 30' S.O.,'03 GMC Savana 2500,'08 Vespa GTS 250
my understanding is that it has to have a toilet, specifically...but perhaps its an entire bathroom. And you have to live in it for 2 weeks out of the year.
(that's what they told us when I worked at a car dealership, years ago, in reference to "conversion vans". you could put a "porta-potty" in it, live in it for 2 weeks, and write it off as a second home. they may have been stretching it, though )
It just needs to have bathroom/kitchen type facilities. Those things that any second home would have.
Should clarify that only the interest is deductable and any personal property tax if applicable. As Jack said the deduction is taken as an itemized deduction on schedule A.
Question: I bought a 5th wheel trailer for vacationing. Can I deduct the interest on the loan for this 5th wheel? Where would it be listed?
Answer: You can deduct the interest paid on the loan you took out to purchase the trailer as acquisition indebtedness interest only if the loan is secured by the trailer and the trailer meets the requirements of a qualified home. A qualified home includes a house, condominium, cooperative, mobile home, boat or similar property that has sleeping, cooking and toilet facilities. You can only have one principal residence and one qualified second home. Regardless of whether the trailer qualifies as a home, interest on home equity indebtedness secured by another qualified home and used to acquire the trailer may also be deductible. The interest is deducted as mortgage interest on line 11 of Form 1040, Schedule A (PDF), Itemized Deductions.
Question: What are the rules for mortgage interest on a manufactured home? Can I deduct the interest on the mortgage for the manufactured home if it is on a rented lot? Can I deduct the interest for the manufactured home and for the lot if I buy a lot for the home?
Answer: For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, boat, or similar property that has sleeping, cooking, and toilet facilities.
The mortgage interest on a manufactured home may be deducted if the home is on a rented lot. If you buy a lot and place a manufactured home on it, the interest paid for the lot is also qualifying home mortgage interest, provided the mortgage is secured by the house.
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