There is no minimum length of time requirement. It can be parked all year and still be deducted. The other items mentioned apply -- self contained, collateral for the loan, and only 1 second home. You can have all the RV's and second homes you want, but you can deduct the interest only on the primary and 1 other (so choose the most expensive two).
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Log off and go camping!
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Glen Schumann wrote: If financed with a home equity loan (which is what we did) the interest is deductible without having to meet any other requirements.
Not completely true. Home equity loans have their own rules for deductibility.
2004 National Tropi-Cal T-350, Class A, Triple slide, 330 HP Cat DP. 2006 Dodge Dakota 4x4 or
2002 Harley FLSTF Fat Boy on a Trailer or
2004 Polaris Quad on the Trailer
Upon further checking, it does appear that the 14 day residency requirement only applies if your second home (motorhome) is also rented out for part of the year. So as long as you don't rent it, there appears to be no requirement to use it for any length of time.
msmith1199 wrote: Not completely true. Home equity loans have their own rules for deductibility.
I got to learn something new tonight. Here is a quote from IRS Publication 936 to add detail to what mssmith wrote:
"Home equity debt limit. There is a limit on the amount of debt that can be treated as home equity debt. The total home equity debt on your main home and second home is limited to the smaller of:
$100,000 ($50,000 if married filing separately), or
The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home."
msmith1199 wrote: Not completely true. Home equity loans have their own rules for deductibility.
I got to learn something new tonight. Here is a quote from IRS Publication 936 to add detail to what mssmith wrote:
"Home equity debt limit. There is a limit on the amount of debt that can be treated as home equity debt. The total home equity debt on your main home and second home is limited to the smaller of:
$100,000 ($50,000 if married filing separately), or
The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home."
We are well below the limit.
Correct. If I had done a home equity loan on my DP versus conventional financing, I would have exceeded the limit and only have been able to deduct part of the interest.
msmith1199 wrote: There is also a requirement that you live in it for a certain length of time each year and be able to document that you lived in it. I think the requirement is only two weeks each year. I do that easily so it isn't a problem for me.
There is NO requirement to live in the unit for a specified time, that's only if it's a rental. Many, many answers from professionals have stated that on numereous threads over the years.
Deen - Vancouver, WA
'02 Dutch Star 4090 (41+', triple slide)
435/1200 ISC Cummins/Banks PowerPak
'08 Honda Civic/dolly
'05 Honda Odyssey/dolly
NRA Benefactor Life Member
FMCA f47302s, Life Member: Good Sam, Newmar DP Owners Group
51st yr of RV'ing
msmith1199 wrote: The correct answer is, depending on your situation it may be. For most of us it is. I write mine off as a second home. As long as you don't have a real second home you should be okay. You can only write off your primary residence and one second home. Most RV's will comply with the requirement to be a second home as long as they have full living quarters with a kitchen, bedroom or bed, and bathroom. A cab over camper that didn't include a bathroom probably would not qualify. There is also a requirement that you live in it for a certain length of time each year and be able to document that you lived in it. I think the requirement is only two weeks each year. I do that easily so it isn't a problem for me.
On Edit: I forgot to add that the RV must be used as security for the loan. If you use a cash loan or some other loan where the RV is not listed directly as security then it is not deductible as a second home.
Actually, you may want to double check with your CPA on that...ours deducts the interest on our home equity loan, since we maintained the purchase documents and have a complete package which shows a direct paper trail from the cash to the motorhome.
2008 Itasca Meridian 37H, All. 3000MH (6-auto), Freightliner XC Chass., Cummins 6.7L Turbo, (Sweet! Delivery 03/12/08). Tow: '07 Dodge Gr. Caravan, Me, Him; Sugarbear, Apr. Toy Poodle; Pepe, Blk Toy Poodle; Hero, fat Siam.-mix polydactyl cat/Alarm Clock.
msmith1199 wrote: The correct answer is, depending on your situation it may be. For most of us it is. I write mine off as a second home. As long as you don't have a real second home you should be okay. You can only write off your primary residence and one second home. Most RV's will comply with the requirement to be a second home as long as they have full living quarters with a kitchen, bedroom or bed, and bathroom. A cab over camper that didn't include a bathroom probably would not qualify. There is also a requirement that you live in it for a certain length of time each year and be able to document that you lived in it. I think the requirement is only two weeks each year. I do that easily so it isn't a problem for me.
On Edit: I forgot to add that the RV must be used as security for the loan. If you use a cash loan or some other loan where the RV is not listed directly as security then it is not deductible as a second home.
Actually, you may want to double check with your CPA on that...ours deducts the interest on our home equity loan, since we maintained the purchase documents and have a complete package which shows a direct paper trail from the cash to the motorhome.
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