I just returned from a family road trip, during which we saw countless trailers, RV’s and boats which gave me the idea for this blog. Can you deduct expenses for your trailer, RV or boat?
If you own a trailer, RV or boat that meets the following requirements, you may be able to deduct the mortgage interest you pay on a loan to acquire that second home.
- The IRS defines a qualified home as a property that has sleeping, cooking and toilet facilities, and
- The qualified home secures the mortgage debt
As long as your mortgage and second home property meet the requirements above, you may be able to deduct interest on an acquisition loan secured by that property (secured debt).
Mortgage loan interest is deductible only if you itemize deductions on your return and the deduction is limited to interest on up to $750,000 of mortgage debt.
Down payments, insurance, and maintenance are not deductible, unless you are renting your unit to others when you are not using it.
Rental income from your RV may help make it more affordable. You can even use a company to help connect you renters, similar to AirBNB.
Rental income must be reported on your return, but you can deduct expenses such as maintenance, insurance, finder’s fees, and depreciation on a pro-rata basis to offset that income.
Honorine M. Campisi, CPA