Reply
 
Thread Tools Display Modes
Old 04-23-2016, 05:06 PM   #11
Member
 
Join Date: Jul 2015
Posts: 63
I write off my interest too. I buy new ones every year or two. The way I see it is I "get the interest back" so the cost of ownership is the down payment that I need to make if I am behind the depreciation game on the one I am getting rid of. I have been ok a couple times and have gotten my rear kicked a couple times! But I. The end it is all the cost of a lifestyle that we love.


2017 Brookstone 395RL
Chardon OH
__________________

__________________
cwc510117 is offline   Reply With Quote
Old 04-23-2016, 10:16 PM   #12
Member
 
Join Date: Nov 2015
Posts: 30
As long as it has a bathroom the interest can be written off. This is according to our accountant, so we have been doing this every year and even back in the old days when we had a pop up with a potty.
__________________

__________________
jrmorris is offline   Reply With Quote
Old 04-24-2016, 09:28 AM   #13
Andy & Ann
 
awhitlow2000's Avatar
 
Join Date: Jan 2016
Location: Alabama
Posts: 28
We have had 5 or 6 units over the years and as mention above if it has bathroom it qualifies to write off the interest as a second home. I have been using Turbo Tax for years and no problems from the IRS when doing this.
__________________
awhitlow2000 is offline   Reply With Quote
Old 04-24-2016, 10:24 AM   #14
Senior Member
 
Join Date: Oct 2015
Location: Wisconsin/Florida
Posts: 793
Quote:
Originally Posted by jrmorris View Post
As long as it has a bathroom the interest can be written off. This is according to our accountant, so we have been doing this every year and even back in the old days when we had a pop up with a potty.
It must also have cooking facilities and sleeping facilities as-well-as toilet.
__________________
PenJoe is offline   Reply With Quote
Old 04-24-2016, 10:53 AM   #15
Senior Member
 
bubbles's Avatar
 
Join Date: Dec 2012
Posts: 2,559
Why guess. Right from form 1040A procedures:

A home can be a house, condominium, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleeping space, toilet, and cooking facilities.
__________________
bubbles is offline   Reply With Quote
Old 04-24-2016, 11:01 AM   #16
Site Team - Lou
 
Herk7769's Avatar
 
Join Date: Oct 2009
Location: South Eastern PA
Posts: 21,168
Quote:
Originally Posted by cwc510117 View Post
I write off my interest too. I buy new ones every year or two. The way I see it is I "get the interest back"
You actually only get "your tax bracket" interest back only in the amount that your itemized deduction exceeds your standard deduction.

For example, the standard deduction for married filing jointly is $12,600.

That means you need to have at least that amount of property taxes, mortgage interest, medical expenses, charitable contributions, etc before you can deduct a cent.

Even then, you only get the discount of your tax bracket's tax rate. If your taxable income is more than $ 37,450 and less than 90,750, your tax rate is 25%.

So assuming you are in that tax bracket, and all your deductions with the RV's interest included is less than 12,600 dollars, every dollar in interest is out of your pocket.

Say you pay lots of mortgage interest, and with the RV's interest of $2000 included, and your deductions will exceed $12,600 dollars by the $2,000 contributed by your RV loan, your tax "savings" will be only $500 of that interest. $ 1,500 of it will still be "out of pocket".

https://www.irs.gov/pub/irs-drop/rp-14-61.pdf

Worse yet, as your loans age, the tax deduction reduces every year till it disappears even though you are still paying the same amount due to more principle being paid and less interest.

The sales tax deduction has to also pass a "test". You can only deduct the higher of your state income tax OR your sales tax based on your gross income plus the sales tax on "large ticket" items like a house, car, boat, or RV; not both.

Financing ONLY because "you can write off the interest" is not good money management. If you have to anyway, you "MAY" get a small financial benefit depending on your particular financial circumstances and where you live.

Additionally, you can only write off the interest from financing the TRAILER in a 5th wheel or Travel Trailer. The truck's interest is NOT deductible. ALL of the motorhome is because it is all one item.
__________________

Lou and Laura with Bella - German Short Hair Pointer
2008 GMC Sierra 2500HD Crewcab SB Allison Duramax
2010 Flagstaff 8526RLWS - Superglide 3300
HAM CALLSIGN - KC3FFW
Herk7769 is offline   Reply With Quote
Old 04-24-2016, 02:28 PM   #17
Senior Member
 
Join Date: Oct 2015
Location: Wisconsin/Florida
Posts: 793
Your correct Herk7769, we purchased/financed a new Class C last year thinking we would get a break on deductions for sales tax and mortgage interest. We didn't meet the threshold and never got a nickle credit. We will be paying the loan off in another month. We can use that interest $ for a vacation every year.
__________________
PenJoe is offline   Reply With Quote
Old 04-24-2016, 02:36 PM   #18
Senior Member
 
BandJCarm's Avatar
 
Join Date: Jun 2013
Location: Between Pickles Gap and Toad Suck, AR
Posts: 3,303
Herk be's right!

And even if you itemize, you don't get all of the total amount to deduct if you exceed a certain income threshold.
__________________
"Next to prayer, fishing is the most personal relationship of man" Herbert Hoover
"American by Birth, Southern by the Grace of God"Lewis Grizzard

FROG AR-0019-242
2016 GMC Denali 3500Dually--2017 CC 36CKTS
BandJCarm is online now   Reply With Quote
Old 05-27-2016, 12:32 PM   #19
Member
 
Join Date: Apr 2016
Posts: 34
We claim our 2013 Georgetown XL 378 as a second home on our fed and state taxes. It was very simple in SC and our dealer recommended it. No problem with the irs or dor.
__________________
SCUBA Guy is offline   Reply With Quote
Old 05-27-2016, 02:31 PM   #20
Senior Member
 
Join Date: Sep 2010
Posts: 1,702
Considering only a third of taxpayers have enough deductions to itemize, i have to wonder how many people think they are writing off the interest (because they enter it into Turbo tax or give it to their their tax preparer) but in reality are just taking the standard deduction and getting zero tax benefit.


2010 F250 5.4L 3.73
2011 Flagstaff 831FKBSS
Equal-i-zer 4pt 12K
__________________

__________________

2011 Flagstaff 831FKBSS
2010 F250 4X4 5.4L 3.73 LS
EQUALIZER E4 1200/12000
lbrjet is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



» Virginia Campgrounds

Reviews provided by




ForestRiverForums.com is not in any way associated with Forest River, Inc. or its associated RV manufacturing divisions.


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -5. The time now is 09:23 PM.