RVs are homes on wheels. So every April during tax season, it makes sense to wonder if your motorhome or travel trailer is tax deductible as a second home. Today let’s look at the factors that might make an RV purchase a tax deduction.
Disclaimer: Everyone’s financial situation is different. Before making any tax decision, seek advice from a tax preparer.
How is a Motorhome or Travel Trailer Tax Deductible?
Your motorhome or travel trailer can be tax deductible as a second home IF it meets the following conditions:
- The RV must have sleeping facilities
- And the RV must have cooking facilities
- In addition, the RV must have toilet facilities
Do you meet this criteria? If yes, here’s how you can deduct your motorhome or travel trailer.
- Loan interest for your second home RV is a deduction.
- But you can only deduct two homes that you own. One must be your primary residence, and the other as your second home.
You can deduct real estate taxes and personal property taxes on any number of homes you own. Refer to the IRS Publication 936 (2022), Home Mortgage Interest Deduction, when ppreparing your 2022 tax returns.
Can you deduct sales tax on a motorhome or travel trailer?
You may be able to deduct a portion of the sales tax paid on a new travel trailer, if the purchase took place during the last year. Refer to your tax form worksheet that helps determine how much RV you can deduct.
Can you claim your RV as a primary residence?
Yes,an RV can be claimed as a primary residence or second home. This allows you to take advantage of the same tax deductions as a typical homeowner. But deducting your RV as a second home can get complicated. Always consult a certified tax preparer.
Can I write off an RV as a business expense?
Do you use RV for your business? And is your RV work space separate from non-work space? If yes, a portion of your your RV home/office can probably be written off as a business expense. Many ordinary expenses that go into operating your business from your RV could be a tax deduction. Careful documentation is essential to avoid raising red flags with the IRS.
Do you work from your RV? Is deducting a travel trailer or motorhome on your taxes do-able? If so, consult a professional tax preparer to help you make the most of saving money by making your travel trailer tax deductible.