Can My Camp Trailer Be A Tax Write Off?
Understanding the ever-expanding tax code is a vast undertaking. However, in the world of RVing, there are actually some tax deductions you might stand to benefit from, depending on your living and working situation as well as what state you reside in.
While taxes are not fun to figure out, it is worth noting that taking advantage of some of the tax breaks available to those with camp trailers/RVs will save you some money in the long run.
Tax Deductions for Camp Trailer Owners
If you fall into the broad category of camp trailer/RV owners that financed your RV with a loan, many loans do not qualify for any type of tax deduction. Rest assured, though, that there is still a way to deduct some of the loan amount.
Similar to a home, you may be able to deduct the interest of the loan, similar to how you can deduct home mortgage interest. In order to qualify legally for this, your camp trailer or RV does have to meet a few critical requirements. Stated officially by the IRS:
“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.”
Breaking this down, if your trailer/RV is a place that you can actually reside in, legitimately, for more than a few nights, there is a chance that it qualifies. One critically important thing to remember here, though, is that your tow vehicle does not qualify for the same break as it is not something you can legitimately reside in. In order for you to legally deduct the interest on the loan of your trailer or RV, the loan must be a secured loan - one that is directly tied to the trailer/rv, instead of a general loan for any given dollar amount. This loan is safe for the bank in the event that you default on the loan.
Additionally, you are able to deduct miles that you travel for business, if using your RV. The amount per mile driven varies each year, but typically falls around 55-60 cents per mile, depending on the tax year.
If your RV is purely used as a rental, there are many other things that can be written off such as maintenance, parts, storage costs, etc. - essentially anything clearly related to the care and maintenance of the trailer/rv. An example of this deduction would be the cost to repair damage caused by a renter on the rv/trailer.
State Sales Tax Deductions
Some states offer a ‘motorhome sales tax deduction.” The sales tax rate in each state varies, but keep in mind that there are currently 5 states that do not assess sales tax, so residents of those states would not qualify for this deduction (Oregon, Montana, New Hampshire, Alaska, Delaware).
Conclusion
It is recommended that you consult the tax advice of a certified tax specialist with any specific questions related to tax breaks you may be able to claim for your RV. But the positive news here is that depending on your current living situation and how you are using your trailer/RV, there are a handful of tax breaks that you could claim. The good news is that, even if it's just a few dollars, it is nice to be aware of the fact that your RV could save you some money come tax time.