Originally Posted by Copeland
I have a believe that this is a toy and I don't finance toys. I do like to try to help people when I get the chance. So with that sorry to get a post up in arms.
This is great advice but as you said, cash for an RV is not for everyone. As a former Secretary of Defense once said, "you go to war with the army you have; not the one you wish you had."
As applied to this topic, for most, borrowing for capital purchases is a fact of life. We all wish we could pay cash, but reality gets in the way. If you must borrow; borrow smart. Finance the absolute minimum you can, for as short as you can, for the least interest that you can, and NEVER tie a car or RV to your HOME. You can always tell them to come get your car or RV and they can't touch your home, PROVIDED you did not tie the title to your house.
The fact that TODAY, you can write off the interest as a second home is a plus; not a determining factor. Remember most folks are in the 12 - 15% tax bracket and/or take the standard deduction on their return. If you don't have enough deductions to itemize; you can't claim the mortgage or RV interest.
So even if you CAN itemize your deductions, that means "Uncle Sugar" is only reimbursing you 12 to 15 cents for every dollar of deductible interest paid OVER the standard deduction.
You are also right, that as part of the "Grand Bargain," it is possible that second home interest may go away. Just as likely, all mortgage interest will go too as the biggest benefactors of the deduction are millionaires with two mansions; not regular home owners who at most are benefitting a few hundred dollars of tax savings; if they can even use it at all.
Then again; maybe not; but in the big scheme of things, it is not a driving factor.