fredbon
Pacific Northwest or SoCal
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Joined: 09/21/2001
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I would listen to a individual who specializes in tax filing. On two occasions CPA's would have cost us thousands of $$$$$.
fred
Fred and Bonnie
Frankie & Scarlett, (The Cats)
2005 Dolphin LX 6375
2006 Saturn VUE
As I've Matured... I've learned that artificial intelligence is no match for natural stupidity.
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LTCLarry
Maggie Valley, NC
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Joined: 11/03/2011
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As many have said on here......find a GOOD accountant and then follow his/her advice. You will find that over time that advice is worth it's weight in gold.
2008 Silverado 2500 HD
2010 Aerolite 24rbs
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zul139
Medford, WI USA
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Joined: 03/02/2004
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It's been my experience regarding opinions is that everyone has one, including me. So here's mine! When it comes to tax laws not every CPA, accountant, places specializing in doing tax returns will give you the same answer in reference to a specific question. Believe me I know. Find someone you trust and that you are comfortable with to do your return and listen to him or her, after all you are the one signing the return. That being said, you should be able to depreciate your trailer over a predetermined life. Possibly the truck also. I did with mine, actually three of them. Good luck!
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FrozenAKJoe
Eagle River, AK
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Joined: 03/28/2003
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So long as it has complete cooking, bathing and sleeping areas, any RV qualifies as a second home and thus allows for the Schedule-A deduction of interest paid. In addition, if the tow vehicle is bundled as part of the RV loan, then that portion of the interest would also be deductible (you'll only receive one IRS 1099 for the loan package -- there's no way to distinguish RV and truck interest paid). The downside of loan-bundling a vehicle & RV together lies in their un-bundling at a later point. Frequently, the truck and RV depreciate at different rates. The lender will only allow you to break the two apart if your equity = loan balance. Often, meeting this equation will require you to front extra cash when trying to un-bundle and/or refinance. Consider how this will effect your ability to upgrade either the 5th wheel or truck if for some reason you desire to. A close friend of mine was stuck with a particular truck/camper combination for this exact reason. He wanted to keep the truck and upgrade to a newer slide-in camper, but he couldn't because he was upside down on the loan.
Another thing to consider is that given today's exceptionally low vehicle loan rates, the tax benefit of being able to claim interest on a Schedule-A is almost nil. Taking the standard deduction prohibits one from claiming any mortgage interest, and the standard deduction frequently results in a lower tax bill. Of course, everyone's results will be different based upon local and state taxes, charitable contributions and miscellaneous expenses. However, in my opinion, the downside risk of tying the two vehicles together more than outweighs the small financial benefit of writing off the interest. If this small benefit is a make/break item, you're most likely better off buying a less expensive RV combination.
Also, consider the example that claiming a dollar of interest while in the 25% marginal tax bracket does indeed result in a tax savings of 25 cents. However, this savings applies only to those dollars that cause your Schedule-A to exceed the Standard Deduction. Meaning, if you pay $2000 of interest but doing so only causes your Schedule-A to exceed the standard deduction by $500 (and you're in the 25% marginal tax bracket), you real tax savings is only $125. You have to work the math both ways and determine if the financial benefit outweighs the shackling that this will place upon your assets.
Hope this helps.
2005 Forest River Sunseeker 3100
2010 Ford Taurus Limited (damn nice car.... good job Ford!)
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doublenot7
Clear Lake, Texas
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Joined: 03/14/2011
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Does not matter if your residence has wheels or not, the same rules apply: If it has a bedroom, kitchen, and bathroom, you can deduct the interest not the principal. This is per my CPA/tax attorney.
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Sean Boburk
Texas
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Joined: 03/19/2011
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I think what he/she is looking at, is claiming the RV as a business asset. I know a friend of mine owned/operated a cleaning company. He was able to claim a portion of his van each year. I am not a tax specialist by any means, but my understanding is that if he depreciates the van to zero, that when he sells the van, that this income becomes a capital gain for the business.
Anyhow...back on track...I don't see how an RV can be claimed as a business asset unless you are actually working out of the RV.
Again, no specialist...just my unqualified internet input.
(found this thread trying to figure out how to claim my interest on my taxes).
Sean
2011 Flagstaff 29SKBS
2010 F-150 4x4 5.4L
2011 camping days=23 in 9 locations
2012 camping days=2 in 1 locations
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wandering1
Texas
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Joined: 06/18/2002
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Thats the way it always worked with me. Sounds like your accountant knows what he is talking about. If you dont trust his advise get another one.
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