Learn about many of the IRS requirements for an RV loan to be eligible for a tax deduction as a second residence.
According to the Internal Revenue Code Section 163 (h)(2) a taxpayer may deduct any qualified interest on a qualified residence, which is defined as a principal residence and one other residence owned by the taxpayer for the purpose of deductibility for the tax year. Internal Revenue Code 163 (h)(3) defines qualified residence interest as any interest which is paid or accrued during the tax year on acquisition or home equity indebtedness with respect to any qualified residence of the taxpayer.
In accordance with Internal Revenue Code Section 163 (h) (4), a recreational vehicle, like a Newmar Bay Star, will be considered a qualified residence if it is one of the two residences chosen by the taxpayer for purposes of deductibility in the tax year as long as it provides basic living accommodations such as sleeping space, toilet and cooking facilities. If the recreational vehicle, such as a Newmar Dutch Star, is chartered or rented out, the taxpayer will have to use the Dutch Star (RV) for personal purposes for either more than 14 days or 10% of the number of days during the year the recreational vehicle was actually rented, in accordance with the Internal Revenue Code Section 280A (d) (1).
This information is meant to be helpful and informative, but it is not intended to replace the advice from a fully qualified financial or tax consultant, or accountant. Please ask your tax advisor for more information.
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