Can You Deduct Your Interest Payment from Your RV Loan on Your Taxes?
TL;DR: Yes, you can deduct RV loan interest if your rig has sleeping, cooking, and toilet facilities—just like a home mortgage. But only for two homes max, and a portable toilet may be a gray area! 🚐💰
Taxes and Accounting for Full-Time RVers Working on the Road
Can You Deduct Your Interest Payment from Your RV Loan on Your Taxes?
By Adam and Lindsey Nubern
DISCLAIMER: The information and materials we share in this article are intended for reference only. As the information is designed solely to provide guidance to the readers, it is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations. Therefore, we strongly encourage you to seek the advice of a professional to help you with your specific needs.
This is a super common question from full-time RVers: Can we deduct the interest from our RV loan on our taxes like we would if we had a normal house mortgage loan?
Good news y’all! The short answer is yes.
The Reason You Can Deduct Your RV Loan
The IRS says, “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, house trailer, boat or similar property that has sleeping, cooking and toilet facilities.”
So, if your RV has these three categories that make up a home (sleeping, cooking and toilet facilities), you can deduct your interest paid on your RV loan.
Limitations to Why You May Not
Can Only Deduct Two Homes at Once
The first limitation is you can only deduct your first and second home at one time. If your RV is a third home, then you’re not able to make the deduction.
Portable Toilet Facility
For all the #vanlifers out there with a portable toilet, this is a tricky decision. If you were to get audited by the IRS, we can’t guarantee they’d view your portable toilet stashed in a cabinet or under the bed as a legit toilet facility. However, to our knowledge, there hasn’t been a tax court case that’s set precedent here. As always, these rules are up to interpretation!
Where to Make the Deduction on Your Taxes
So, where do you make this deduction on your taxes?
First, you’ll look to see what the total amount of interest you’ve paid on your loan for the year is. You normally get this information in early February when the bank sends you Form 1098 about your loan payments. On this form, look for Box 1. The number there shows you how much interest you’ve paid during the year.
Then, on your Schedule A tax form, you’ll take your interest paid amount and put the number on Line 10.
Or, if you have a CPA you work with during tax season, make sure you share your Form 1098 with them and request them to deduct the interest from your RV loan.
Happy deducting y’all!
Want to Talk to a CPA about Your Unique Situation?
Everyone’s situation is different. You can ask questions and get clarity on if you can deduct the interest from your RV loan with a CPA.
Xscapers works with Adam Nubern of Nuventure CPA. You can send Adam a quick note here.
DISCLAIMER: The information and materials we share in this article are intended for reference only. As the information is designed solely to provide guidance to the readers, it is not intended to be a substitute for someone seeking personalized professional advice based on specific factual situations. Therefore, we strongly encourage you to seek the advice of a professional to help you with your specific needs.
