Are there any tax deductions for my motor home, boat, or travel trailer?
Below is a list of deductions available for these items.
The interest paid on the above items may qualify as a tax deduction for your "2nd home". To be deductible, the property must have sleeping, cooking, and toilet facilities.
There are two additional caveats: 1) You can only deduct interest for one 2nd home. So, if you have a vacation home, you'd have to choose between that home and your motor home or boat 2) Loan indebtedness cannot exceed $750,000 between your primary home and 2nd home. So, it's important to be aware of this limitation (i.e. - if your primary home loan is for $800,000 you don't have any remaining eligible indebtedness for deducting interest...so you would not be able to deduct loan interest for a 2nd home in this case)
Property taxes on the subject items can be deductible, if taxes are assessed based on the value of the item and charged on a yearly basis.
Also, remember that the deduction will be subject to the new $10,000 SALT cap (as of 2018)... so your combination of state taxes paid (W2 taxes, etc) and property taxes can't exceed $10,000. For many high-income tax states and high value property owners, this $10,000 cap can be met very quickly.
If you choose to deduct sales taxes instead of property taxes, this can be a beneficial deduction. Either way, you'll be subject to the $10,000 limitation mentioned above.
Copyright © 2019 Chad Peshke, All rights reserved.