rv travel trailer write off

This post may contain affiliate links or mention our own products, please check out our disclosure policy .

Is My Motorhome or Travel Trailer Tax Deductible?

Published on February 1st, 2019 by Ray & Tammy Roman This post was updated on March 20th, 2023

RVs are homes on wheels. So every April during tax season, it makes sense to wonder if your motorhome or travel trailer is tax deductible as a second home. Today let’s look at the factors that might make an RV purchase a tax deduction.

Disclaimer: Everyone’s financial situation is different. Before making any tax decision, seek advice from a tax preparer.

How is a motorhome or travel trailer tax deductible.

Your motorhome or travel trailer can be tax deductible as a second home IF it meets the following conditions:

• The RV must have sleeping facilities
• And the RV must have cooking facilities
• In addition, the RV must have toilet facilities

Do you meet this criteria? If yes, here’s how you can deduct your motorhome or travel trailer.

DON’T MISS OUT ON RV LIVING UPDATES

Sign up for the newsletter today.

Please enter a valid email address.

An error occurred. Please try again later.

Thank you for subscribing to the RV Living newsletter, keep your eye on your inbox for updates.

• Loan interest for your second home RV is a deduction.
• But you can only deduct two homes that you own. One must be your primary residence, and the other as your second home.

You can deduct real estate taxes and personal property taxes on any number of homes you own. Refer to the IRS Publication 936 (2022), Home Mortgage Interest Deduction , when ppreparing your 2022 tax returns.

Can you deduct sales tax on a motorhome or travel trailer?

You may be able to deduct a portion of the sales tax paid on a new travel trailer , if the purchase took place during the last year. Refer to your tax form worksheet that helps determine how much RV you can deduct.

Can you claim your RV as a primary residence?

Yes,an RV can be claimed as a primary residence or second home. This allows you to take advantage of the same tax deductions as a typical homeowner. But deducting your RV as a second home can get complicated. Always consult a certified tax preparer.

Can I write off an RV as a business expense?

Do you use RV for your business? And is your RV work space separate from non-work space? If yes, a portion of your your RV home/office can probably be written off as a business expense. Many ordinary expenses that go into operating your business from your RV could be a tax deduction. Careful documentation is essential to avoid raising red flags with the IRS.

Do you work from your RV? Is deducting a travel trailer or motorhome on your taxes do-able? If so, consult a professional tax preparer to help you make the most of saving money by making your travel trailer tax deductible.

If you enjoyed this post Please Share:

Related posts:.

What is the Life Expectancy of a Travel Trailer?

How to Save Money Buying a New RV: Tips from an RV Industry Pro

Basic Guide to RV Loan Financing

About the author:.

• Find a Location

RV Tax Benefits You Should Know

New and used RVs are both eligible for tax write-offs. Keep in mind that these deductions can only be claimed for a single tax year in which a corresponding event occurred. Here are a few examples:

• Sales tax paid on an RV purchase
• State or municipal property taxes
• Interest paid on an RV loan or mortgage
• Use of RV as a home office or for work-related travel
• Use of an RV for rental income

Claiming deductions will require receipts to verify relevant sales and purchases. You will also need to fill out additional tax forms to receive these RV tax benefits. It is also worthwhile to evaluate whether your itemized deductions exceed the standard deduction. 

If the standard deduction is larger than the sum total of your itemized deduction, you are probably best to stick with the standard deduction. So make sure to speak with a tax professional to determine all the applicable deductions for your recreational vehicle.

RV Tax Benefits Explained

Let’s go over those four main deductions and discuss whether or not your RV might qualify. 

Sales Tax Deduction

The sales tax deduction is a one-time opportunity that will be available to you in the tax year that you purchased your recreational vehicle. It can be claimed if you paid cash or secured a loan to purchase your RV and this is often a significant amount that can help your itemized deductions exceed the standard deduction. 

Please remember that you will be ineligible for this deduction if you live in a state that doesn’t charge sales tax. Otherwise, make sure you know how much you paid in sales tax on your RV purchase to take advantage of this important RV tax benefit. 

Local and State Property Tax Deductions

If you live in a state that charges property tax for vehicles, you may qualify for this deduction. This vehicle property tax is usually a percentage of the total value of your vehicle, according to your state or municipality. 

The property tax percentage will vary from state to state, but you may be able to deduct a maximum of $10,000 for combined state property tax and sales tax for your RV. 

Loan or Mortgage Interest Deduction

Depending on the size and features of your RV , you may be able to deduct interest paid on your RV loan or mortgage, whether you live in it full-time or part-time. According to IRS Publication 936 , “A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.” 

That means your RV could likely qualify as a main home or a second home and you may be able to deduct the annual interest paid on a loan or mortgage as long as your motorhome contains a bed, bathroom, and kitchen.

You will also need to finance your RV using a secured loan if you want to claim this deduction. With this type of loan, the RV itself is considered collateral in case you default. You may not claim this deduction if you purchased your RV with cash, a credit card, or a personal loan.

Here are a few more things to consider about this RV tax benefit:

• You may still enjoy this deduction if your RV changes from your main home to your secondary residence.
• You can claim an interest deduction on a second home even if you don’t use it (i.e. your RV is in storage all year). 
• Interest on loans for vehicles used for towing , or being towed by , a recreational vehicle cannot be deducted. 

If you claim your RV as your main home and you decide to sell , you may still claim interest paid up to, but not including, the date of the sale. There may be some exceptions for unique or homebuilt RVs, so you should consult a qualified tax professional before making any assumptions that your RV fits the criteria.

We also encourage you to learn more about IRS Form 1098 , as to whether or not you receive this form from your lender will determine where and how you claim this dedication on your tax return.

Business Tax Deductions

Do you use your RV for business purposes , such as renting it out when you’re not using it? If so, you may write off some of the expenses associated with your business venture. The exact deductions you’ll qualify for will depend on whether you use your RV solely for business, for a combination of full-time living and work, or for a mixture of personal and business use. 

Before we go over the general outlines for these scenarios, we want to encourage you to talk with your tax professional to find out what qualifies as an RV business tax deduction for your specific situation.

RVs Used Solely for Business

If you use your RV solely for business purposes, you will be able to write off most, if not all, of the expenses related to operating and maintaining the RV for that business. In fact, the whole RV may qualify as a business deduction.

The kicker here is that you won’t be able to use your RV for personal use. Even using it a few times a year for personal trips can disqualify it from being a full business deduction.

Full-Time Living and Work

If you live in your RV full-time and work inside it too, then you may be able to deduct certain business-related expenses, depending on what they are and if they are used solely for business purposes. 

Mixed Personal and Business Use

If you rent your RV , you can write off expenses accrued through that venture. This applies whether you have your RV parked on your property as a rentable accessory dwelling unit (ADU) or you utilize a service like Good Sam RV Rentals to find renters.

Renting is an attractive way to recoup your initial RV investment more quickly. You may be able to claim deductions for things like depreciation of assets (learn more about RV depreciation ), advertising fees, rental insurance, maintenance costs, and commissions taken by a rental management service. 

Keeping meticulous records is the key to qualifying for business deductions when using your RV for business and personal use. You should know exactly how many nights you rented your RV out versus how many nights you personally spent in it. 

This is very important when considering whether you can claim business deductions in conjunction with a home mortgage deduction. You will only be able to claim that home mortgage deduction if you use your RV as a home for a minimum of 14 days or more than 10% of the total days it was rented. The greater of these two numbers will determine your personal threshold for qualifying for the home mortgage deduction.

Final Note on RV Tax Benefits

You should never make assumptions when dealing with taxes. When preparing your taxes, we highly suggest working with a certified public accountant or tax professional to ensure that you understand the laws both federally and locally. 

Recent changes to tax laws may impact whether or not you qualify for certain deductions, which is why it’s smart to work with a professional who knows and understands tax law.

What questions do you have about RV tax benefits? Let us know in the comments below.

• Comment (21)

I have a couple of businesses located in different states (CA, AZ, and NY) These are income producing, profitable businesses. I thought buying an RV would be great to travel between offices and eliminate the need for costly hotels. I live in CA but would likely leave at my NY business half of the year.

The only time I would actually use it would be going between and staying at the different office locations.

Would this qualify as a business expense?

I’m planning on using my RV as a “get off the grid“ coaching get away for my clients. Even when I actively don’t have a client, I would either be working out of it waiting for the next client doing marketing etc, changing locations in anticipation of the next client, or scouting locations for potential use. In my mind, that’s a full time working RV, and would fall under those IRS rules. Is there anything you would add for me to consider?

Hey Sue, I am a coach, and I am also working full-time out of my RV. I’m curious if you got this figured out?

Can you deduct the cost of parking your RV in a campground or other park along with the interest paid on the loan? It will be our main home.

Handicap special things need in rv are these a tax credit? Where can you safely camp without crowds now? And why can’t motorhomes be a mortgage an tax deductible item? How can hud mortgages be used in motor coach rv to live in? I’m a fire victim insurance settlements take yrs to settle how can I convert to a motor coach rv to live in till settlement or just go o. The rd looking for place to live? Any idea?

Purchased my fifth wheel for cash I’ve remodeled it to fit my business what kind of tax write off can I take for 2020.

Hi Wade, In KY we get a sizeable Homestead Exemption on our regular home, could we get something like this on our RV. Our tax for just this year is almost $1800.00 and this is just a 34 foot Gas, class A. Thanks so much. Everything helps.

Do you do appraisals on research. I am wanting to refinance my 2016 coachman freelancer but the bank is requesting an appraisal for the motor home. I still owe 62,000.00 on it so it must appraise for more than that . I bought it used and it still has under 10,000 miles on it

Can you take a deduction for the costs of repair for accidents and costs of adding and / or replacing equipment in your Rv, in Oregon state?

If you have your RV paid off can you use it maintance like new a. C and new setciut board

Can “closing costs” on an RV be deducted? I’m thinking of the broker fee and a professional inspection.

Dose tax is it applicable to Canadian also?

Typically, travel expressly for the purpose of work can qualify as a business expense. For individual cases like this, we always recommend seeking the advice of a tax expert (which we are not) to understand what about your RV lifestyle can, and cannot, qualify as a business expense. Hope that helps!

You seem to have the right considerations in mind, but our best advice is to consult a tax professional when it comes to specific cases. They have the most up-to-date knowledge on how your RV (and how you use it) may help you save some money come tax time. Good luck!

If you claim your RV as your primary residence and also work from that location, you may be able to claim some campground fees as business expenses. However, we highly recommend consulting a tax professional before filing, as all situations are slightly different and it’s best to seek professional expertise when considering tax write-offs for RVs!

A lot of these tax questions are specific to your situation. We recommend consulting a tax professional for advice on the deductions and credits you can claim.

In terms of camping without crowds or finding places to live on the road, you might find this article on ways to find boondocking spots useful. Hope that helps!

Hi Jacquie, if the RV is used strictly for business use, then I’d imagine you should be able to write off at least a portion of it as a business expense. However, before you do anything you should talk with a tax specialist. They will be able to tell you what exactly qualifies in this case.

Hi Mary, I’m not totally sure about the Homestead Exemption in KY. Definitely talk with an accountant or tax specialist. It sounds like something you might be able to take advantage of.

Thomas, give your local Camping World a call and someone will be happy to assist you. https://rv.campingworld.com/locations

Hi Marcel, I’m not sure about that. Talk with a tax professional to find out.

Leave Your Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Shop By RV Type

Your Adventure Awaits

Copyright © 2023 cwi, llc all rights reserved.

• RV Glossary |
• Privacy Policy |
• California Privacy Rights |
• Do Not Sell or Share My Personal Information |
• Targeted Advertising Opt Out |
• Terms of Use

How to Maximize RV Tax Deductions

It’s tax season and that means Americans are dreading paying Uncle Sam. And we are looking for every little (and big) deduction that can help us save. So, how many RV tax deductions are there available?

And does it matter what kind of RV you have? Do you need an engine like a Class A or Class C or do Fifth Wheels and Travel Trailers to claim your RV on your taxes?

First, let’s get a little legal stuff out of the way: RV Tailgate Life does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.

OK, now that the lawyer people are happy… let’s talk all about RV tax deductions.

Table of Contents

RV as a Home Mortgage Interest Deduction

If you financed your RV, you might be able to take the interest on your RV loan as mortgage interest deduction.

Let’s take a look at the rules, limitations, and other things you need to know to be able to claim your RV on your taxes as home mortgage interest.

Does the RV Qualify for Home Mortgage Interest Deduction?

The basic rules for RVs as a second home (or first home, for that matter) have not changed in recent years. Your RV (motorhome, travel trailer, fifth wheel, or van) needs to be a qualified home and have a secured debt under the limitations.

There are also some limitations on whether you can use your interest on your RV loan as a home mortgage interest deduction if you rented out your RV during the year. But more on that in a second.

Qualified Home

First and foremost, the question will be whether your RV is a qualified home. Generally, this means that you need sleeping, cooking, and toilet facilities. Class A, B, C, Fifth Wheels and travel trailers should all qualify under these guidelines.

However, many vans may not qualify – in particular the toilet facilities may be missing. If you believe that your van qualifies, you should probably clearly document that you have each of these facilities by showing purchase records for the equipment and taking extensive photos each year.

You can take a home mortgage interest deduction on your main home and a second home.

If you have a fifth wheel or travel trailer, the interest on your tow vehicle will not be deductible as home mortgage interest. Neither will any towed vehicle for a Class A or Class C motorhome. But the interest on the camper/travel trailer/motorhome/RV itself remains deductible.

See Also: Plugging Your RV Into Home Electric

Secured Debt

In order to qualify, the mortgage must be a secured debt. This means that the RV must “secure” the debt – if you fail to pay the loan, then the bank could repossess your RV to satisfy the outstanding amount on the loan.

If you financed through a major bank, your RV loan is probably secured debt. However, if you used a personal loan to obtain the money to buy the RV, it would not be a secured loan. In many (most?) states, you can tell an RV is security for a secured loan based on the Certificate of Title from the local tag agent. If the RV title has lien or security interest noted on it, then it would be a secured loan.

For more information on the home mortgage interest deduction, see the IRS’s Publication 936: Home Mortgage Interest Deduction

Other Limitations for RV Mortgage Interest Deductions

Dollar limitation.

For your main home and your second home combined, you can only take the deduction on the first $750,000 of indebtedness. This does not mean $750,000 in interest, but rather $750,000 in principal.

If you exceed this limitation, you may have to reduce the interest you can deduct. At this level, please make sure to consult a tax professional because you probably have a lot more going on than just RV deductions.

In 2017 and prior, the limitation for the principal indebtedness for both the first and second homes combined was $1 million. It sure had a better ring to it, the million dollar limit, than the three-quarters of a million dollar limit. Oh well, Congress obviously didn’t seek my input on this change.

Rental Use of RV

Did you know that you can take interest deduction on a second home even if you never used it during the year? So even if you just left it in storage the entire year and never spent one night in it, you can still use the interest deduction on your taxes.

However, if you rent your RV out to others, then you must use it as a home at least 14 days or more than 10% of the days it was rented out, whichever is more. Otherwise, you’ll lose the home mortgage interest deduction. But you might gain it back under rental or business property.

If you rent your RV out, you need to keep careful track of the number of nights you use the RV personally and the number of nights you rent it out. Keep a calendar or log to show the tax man if they ever come to audit your taxes.

See Also: Go RV Tailgating with RVShare

Can You Use the Deduction?

Even if you have qualified interest on your RV, you may not be able to or want to use the interest deduction on your federal income taxes. To take advantage of the home mortgage interest deduction, you need to itemize your deductions on Schedule A of Form 1040.

According to the Tax Foundation, only about 30% of income tax filers itemize their deductions . Everyone else either takes the standard deduction or has zero or negative income and were not able to take advantage of any deductions.

For tax year 2017, the standard deduction was $12,700 for married couples filing jointly. If you were single or married filing separately, the standard deduction was $6,350.

In tax year 2018 and beyond, the standard deductions are higher, much higher. The new standard deduction was $12,000 for singles and $24,000 for married couples filing jointly in 2018 and $12,200 for singles and $24,400 for married couples in 2019. In 2020, it was $12,400 for single taxpayers and $24,800 for married couples filing jointly. In 2021, the standard deduction was $12,550 for singles and $25,100 for married couples.

You would only want to itemize if your total deductions are more than the standard deductions. So if you combine all your deductions, like mortgage interest, charitable donations, student loan interest, and anything else on Schedule A, you need it to be more than $12,950 if you are single or $25,900 if you are married.

You May Not Get a 1098 Form

Because RVs are not houses in the traditional sense, it is very likely that you will not get a Form 1098 from your lender. It’s OK, you can still use the deduction. If you received a 1098, then you report this on Schedule A, line 10.

If you did not receive a 1098, then it will go on Line 11. You’ll need to send information about your lender, including their taxpayer identification number. If this was not provided to your statements, you may need to request their taxpayer identification number by sending them a Form W-9. If you don’t have this information, you could be subject to a $50 penalty for each failure to report the accurate information.

What About After the Trump Tax Bill?

The Tax Cuts and Jobs Act was a major tax reform bill passed in December 2017. There were a lot of major tax consequences from that law that affect you.

New Standard Deduction

Like I mentioned above, under the new tax laws that went into effect for 2018, the standard deduction was greatly increased with future standard deduction increases tied to inflation.

That makes it even more unlikely that you will have mortgage interest to deduct.

If you are single, that means you need more than $1,080 in deductions monthly before you itemize. If your RV interest is your only deduction, that puts you in the range of a $250,000 finance amount at 5.25% interest rate on a 15 year loan. And a half a million dollar motorhome if you are married. That’s some high end diesel pushers right there!

And as you pay the loan down and pay less interest every year, you’ll drop below the standard deductions unless you have additional deductions that you can itemize.

New Dollar Limitation on Home Mortgages

In 2017, the home mortgage interest deduction was for the first $1 million in indebtedness on the first and second homes. Under the new tax bill, this has been changed to $750,000.

There was some discussion on home equity loans and lines of credit and whether they would still qualify under the new limitation. On February 21, 2018, the IRS said that interest on these home equity loans would be deductible.

Fifth Wheels, Travel Trailers, and Towables

In December 2017, the Recreational Vehicle Industry Association (RVIA) scared a lot of people regarding whether fifth wheels, travel trailers, and other towable RVs would be deductible under the new tax laws.

And this rumor just won’t die!

First, this was much ado about nothing. Towable RVs are generally less expensive than motorized RVs because they don’t have an engine. (OK, not always, but often enough that it can be a general rule of thumb).

With the higher standard deductions, many people with towable RVs may not need the itemized deduction from the home mortgage interest deduction.

The Legal Analysis Stuff on Towables and Tax Deductions

Second, I have reviewed the text of the final bill . I am having a hard time trying to make the leap that the RVIA does that towables are not included. In fact, the logic doesn’t even make sense.

According to the RVIA, first and second homes can include RVs, but only motorized ones. They state that the “new law only allows deduction for “any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road,” which does not include towable RVs such as travel trailers and fifth wheels.”

Section 163 of the Internal Revenue Code is about the deductibility of interest in a variety of contexts. It’s a long and complicated section. But for this discussion, the relevant parts are subsections h and j.

Subsection h is the limits on home interest deduction. This is where the secured debt and qualified home requirements come from. Subsection j is on business interest.

The problem is that the language about self-propelled vehicles is in subsection j, specifically on floor plan financing interest. Floor plan financing is what the RV dealer uses when they buy the RVs that they will then sell to the public.

This limitation isn’t about you or me, this is about the RV dealership. Now, from an industry standpoint, it is something very important.

Don’t let the internet rumors scare you.

However, because of the higher standard deductions, you may not need to itemize your deductions to minimize your tax liability and thus not need the RV loan interest.

See Also: 10 Things to Know About RV Tailgating

Local and State RV Tax Deductions

Ad valorem taxes.

An ad valorem tax is based on the value of your property. Many people are familiar with ad valorem taxes on their cars, if their home state charges them. In many states, you pay the ad valorem tax when you get your car’s annual tags.

These ad valorem taxes are typically deductible on Schedule A, like the home mortgage interest deduction. Any ad valorem taxes you pay on your motorhome would similarly be deductible.

Another value based tax that you paid is probably a sales or use tax when you bought your RV (unless you are in one of those states that doesn’t charge sales tax). So, if you are like me and bought in 2017, you may be able to take advantage of a sales tax deduction. This is another tax deduction that goes on Schedule A, so it’s available only if you itemize your taxes.

See Also: Think Twice Before Using a Montana LLC to Register Your RV and Avoid Sales Taxes

Limitation for 2018 and Beyond

Under the new tax bill, state and local tax deductions are capped at $10,000.

So if you recently bought your RV and plan on taking advantage of the sales tax deduction on your return due in 2023, you’ll need additional deductions to get over the standard deduction (state income tax deduction, mortgage interest deduction, charitable contributions, etc).

RV for Business Purposes

If you have an RV and are intending to use if for business purposes, good for you. But be careful about the personal use of the RV.

Sometimes, even trivial personal use could make it a dwelling and disqualify the business purpose, as the Jacksons found out in this court case .

If you want to use an RV for a purely business purpose, you are going to have to carefully document exactly how and why it is not personal use. You best consult a tax attorney on this one.

If you are only intending to deduct part of the use of the RV as a business expense, you may have some additional RV tax deductions available.

See More: Can You Take a Home Office Deduction in your RV?

RV Tax Deductions for Business Miles

Depending on the hows and the whys, you may be able to deduct some mileage on your RV. The standard rate for 2017 was $0.535 per mile, in 2018, it was $0.545 per mile for the business miles driven. In 2020, the rate was $0.575 per mile and in 2021, it was $0.56 per mile.

For 2023, the IRS has announced that the standard rate for mileage deduction is $0.655 per mile for standard business use. That’s for miles driven in 2023 and reported on your return due April 15, 2024.

You could also use actual expenses to include gas, oil, tires, repairs, tune-ups, insurance, and registration fees. Because RV maintenance is so expensive and we typically get really bad MPG, you may come out better this way.

But again, you’ll need detailed logs of both the expenses and the personal vs. business use of the RV. You can only deduct the business portion of the expenses.

If you are going to use your RV in full or part in your business, you really should consult with a tax professional to see what will work best for your situation.

See Also: RV Security System by Ring Alarm Pro

Renting Your RV as a Business

One increasingly popular RV business for part-time RVers is to rent the RV out for others to use it.

If you rent your RV out as a business, you can gain additional business expenses and tax deductions. These expenses and deductions include depreciation, commissions paid to the rental management company, advertising fees, insurance, cleaning and other maintenance.

For more on residential rental property, see the IRS’s Publication 527 on Residential Rental Property .

Frequently Asked Questions about RV Tax Deductions

There are four primary tax deductions for RV owners: – Mortgage Interest Deduction on first and second homes – Sales tax deduction on the purchase of the RV – State or local property taxes paid – Business tax deductions for business travel, rental expenses, and depreciation

Yes, you can claim your RV as your primary residence for tax purposes, if your RV is the main place that you ordinarily live most of the year and the RV has the required sleeping, cooking, and toilet facilities. This opens up a lot of tax deductions for RV owners, including the home mortgage interest deduction.

Most Recreational Vehicles (RVs) meet the definition of a residence – they have facilities for sleeping, cooking, and toilet. This means that in the right situation, you can write off the interest you pay on your mortgage or RV loan as a second home. Vans and other modified RVs may not qualify if they do not have the cooking and bathing facilities.

There was a widely spread misconception that after the TCJA passed in 2017 that towable RVs, including travel trailers and fifth wheels, would no longer be eligible for the home mortgage interest deduction. That information was wrong. Both travel trailers and fifth wheels qualify as primary or second homes for purposes of the interest deduction.

RVs, like most assets, are not in and of themselves deductible. However, interest on a loan or mortgage for an RV is deductible if it qualifies as a mortgage on a first or second residence and within the borrowing limits.

Yes, RV loans qualify as mortgages or loans to make the interest tax deductible as a first or second home on U.S. federal income taxes. In order for the interest on an RV Loan to be deductible, – the RV must be the security for the loan – the RV must have a sleeping area – the RV must have cooking facilities – the RV must have toilet facilities

Like so many tax and legal questions, it depends. This mostly depends on whether you will itemize your deductions or take the standard deduction. It’s going to come down to the math and since every situation is different, I can’t tell you whether your RV is deductible on your taxes this year.

The home office deduction requires that a space be used routinely and exclusively for business purposes. Very few people have dedicated spaces in their RV that is used solely as a home office for their business. Remember also that the home office deduction is not allowed for employees, only business owners.

RV campground fees could qualify as a lodging expense in your business, if you use the travel for business travel and not personal or recreational travel. Full-time RVers will not be able to claim their travel as business travel though, as they are not traveling away from their primary residence and duplicating lodging expenses.

When used in your business more than 50% of the time, RVs qualify for Section 179 expense deduction, up to allowable limits by property class. Section 179 does not apply if you report your RV as rental property on Schedule E.

Under the TCJA, bonus depreciation is 100% of the cost of the eligible depreciable property. This tax provision is good for RVs purchased after September 27, 2017 and before January 1, 2023. For RVs purchased in 2023 and after, there is a phase-out on the bonus depreciation.

If your state charges sales tax when you title and register your RV, you can deduct the sales tax paid for your RV on that year’s tax return. This is a one-time only deduction in the year you purchase your RV and pay the sales tax.

Final Thoughts to Maximizing RV Tax Deductions

Don’t buy an RV for the tax deductions! RVs are almost always depreciating assets and expensive to maintain. Any potential tax benefits just are not going to be worth it unless you enjoy the rest of RV life.

And now that I’ve done my taxes and deducted my RV as a second home…. it’s time to go enjoy an adult beverage .

However, after you buy, do take advantage of all the tax deductions and benefits to make an RV more affordable. So you can take more trips and more tailgates!

I know I’ve earned and so have you!

RV Tailgate Life does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.

See Also: Fact or Fiction: Registering RV in a Montana LLC to Avoid Sales Tax RV Insurance Explained Before Your Shop TPMS: Protect RV Tires with Tire Pressure Monitoring Systems 11 Tips the New RVer Should Know

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

I live in California. Purchased a 1995 Class B Roadtrek RV this year (2019). I paid cash for it but still needed to pay sales tax when I registered it with the DMV. Am I able to write off the sales tax? Thnx…

Rod, sales tax can be deductible on taxes, but it is going to depend on your personal tax situation. Also remember that sales tax falls under the state and local tax deduction, which was capped under the tax reform bill. I recommend that you seek the advice of a CPA to check over your taxes this year. They can give you specific advice about whether you can take the deduction or not for your tax return due April 15, 2020.

Enjoy your new to you Roadtrek!

You make a great point about consulting a tax pro for your RV. I just got an RV and I need to store it. I’ll have to make sure I can write repairs off.

Guiding Adventurous Souls Through RV Life

Tax Deductions for RV Owners for 2024

Share with a friend

Last Updated on March 31, 2024 by Jessica Lauren Vine

Finding tax deductions for RV owners can make it a little less painful when you make RV payments. However, don’t take deductions that you shouldn’t take, or you’ll really get into trouble.

Keep in mind that this is not tax advice, and I recommend you work with a well-trained CPA (certified public accountant.)

You may be able to take more deductions for your RV than you thought. This is true whether you use your RV for business, your primary residence, or your secondary residence.

Table of Contents

Tax Deductions When Your RV Is Used for Business

If you work from your RV, you may be able to deduct some of the RV expenses since you use it as an office. Make sure you keep all receipts and anything business-related that you do from your RV documented. You shouldn’t be afraid of an audit, but you should be prepared for one.

Tax Deductions When Your RV Is Used for a Primary Residence

If your RV is used as a primary residence, you’ll be able to deduct the same things as you would be able to deduct on a home mortgage in many cases. Your RV doesn’t have to stay in one location either, so if you qualify for the deduction, you can still qualify when you’re traveling in your RV.

Tax Deduction When Your RV Is Used as a Secondary Residence

For you to get deductions on an RV as a secondary home, it needs to have a bed, cooking area, and bathroom, in most cases. You should always check your state’s laws to make sure.

RV Tax Deduction Types

RV take deductions may include:

• Sales tax paid on the RV
• Homeowners tax deductions
• Business tax deductions
• Interest paid on RV loans

Should I Take RV Tax Deductions?

In some cases, it doesn’t make sense to take RV tax deductions. This is true if the standard deduction you would get is more than what you’d get if you itemized your taxes .

You might also find that your tax prep is more expensive if you have to pay someone to itemize your deductions instead of just taking the standard deduction. However, for people that have a lot of deductions, you should definitely consider the benefits of itemized tax deductions which include RV tax deductions.

RV Tax Deductions Frequently Asked Questions

Can i write my rv off as my second home.

Yes. In some states, you can write your RV off as your second home.

Is RV interest tax deductible?

Yes. RV interest is almost always tax deductible.

How do I claim an RV on my taxes?

The best thing to do is speak with a tax professional since every state can be different with their laws and deductions.

Tax Deductions for RV Owners – Conclusion

Now you have some hope that RV ownership might be a little less expensive. If you live in your RV full time, then you probably already know how much less you could pay on a monthly basis without having a “sticks and bricks” home. But looking into these RV tax deductions can definitely help out.

• Latest Posts

• Dangers of Living in an RV - May 12, 2024
• Best RV Campgrounds & RV Parks Near Anchorage Alaska - December 17, 2023
• Best RV Campgrounds & RV Parks Near Birmingham, Alabama - May 22, 2023

Related Posts

Full Time RV Living with Kids – What It’s Really Like from a Family of 6 Who’s Done It

Best RV Internet Options – How to Get Internet in an RV

6 Best RV Trips for Families – Make Everyone Happy

What Is Stealth Camping?

Leave a comment cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our  privacy policy  to learn more.

Taking business deduction for RV ends up costing taxpayers

• Individual Income Taxation

Business deductions for the use an RV taken on the returns of a corporate entity owned by the taxpayers were found to be evidence that the taxpayers had used the RV for commercial purposes, voiding a warranty on the RV.

Michele and Dan Harkins bought a Weekend Warrior toy hauler RV from The RV Factory in June 2016. They sold their home and planned to live in the RV full time with their children and travel the country. The Harkinses signed a one - year limited warranty when they purchased the vehicle. The warranty said, "Use of recreational vehicle for any commercial or rental purpose voids the warranty from the time that the vehicle is first used for a commercial or rental purpose and at all times thereafter."

The Harkinses signed the RV's warranty in their names, but they bought the vehicle in the name of Getaway Crew LLC, a company that was formed for Michele Harkins's travel agency business in which they were the only two members. Michele testified that they purchased the RV in the LLC's name for legal protection and tax purposes. The Harkinses listed the RV as a piece of property "used 50% or less in a qualified business use" on the Getaway Crew's tax returns in 2016, 2017, and 2018. Mrs. Harkins also testified during her deposition that she operated her travel business from the RV while the Harkinses were living in it.

The RV eventually needed repairs, which the Harkinses believed should be covered by the warranty. The RV Factory disagreed, claiming that the warranty was voided because Michele Harkins, by working in the RV, used it for commercial purposes. At this, the Harkinses sued The RV Factory for breach of warranty and violation of the Magnuson - Moss Warranty Act in district court.

The RV Factory moved for summary judgment. A court will grant summary judgment if the record shows there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.

The district court's decision

The court found that the material facts were undisputed and granted The RV Factory's motion for summary judgment.

The court observed that a corporate entity, Getaway Crew LLC, purchased the RV; Michele Harkins testified that she and her husband purchased the vehicle in the LLC's name for tax benefits; on the Getaway Crew's tax returns, the RV was listed as a business expense; and Michele Harkins said that she worked remotely out of the RV while her family was living in it. Thus, there was no genuine issue as to whether the plaintiffs used the RV for a commercial purpose. Because the Harkinses signed a limited warranty with The RV Factory that said the warranty would be void if the RV was used for a commercial or rental purpose, the warranty was void.

The Harkinses argued a genuine dispute of material fact existed because they paid for the RV with their own money. The court, however, found this to be immaterial. Where the money used to pay for the RV came from did not create a dispute as to whether a corporate entity signed the purchase agreement for the vehicle and included it as a business expense on its tax returns.

The Harkinses further argued that The RV Factory waived its right to void the warranty for commercial use because its representatives were aware that Michele Harkins intended to use the RV for commercial use. The court disagreed and concluded, citing Knopick v. Jayco, Inc. , 895 F.3d 525, 530 (7th Cir. 2018), that the right to void a warranty by conduct is "not readily subject to waiver" and the Harkinses had not produced evidence that The RV Factory had waived it.

Reflections

As this case demonstrates, actions taken to maximize tax deductions can have deleterious nontax effects. Here, in an effort to turn personal property into depreciable business property, the taxpayers unwittingly voided a valuable warranty on the property.

Harkins v. The RV Factory, LLC , No. 3: 17 - cv - 00853 (N.D. Ind. 6/25/20)

Recapture considerations for Inflation Reduction Act credits

Electing the unicap historic absorption ratio under the modified simplified production method, revisiting firpta and return-of-capital distributions, partners’ basis on the liquidation of an insolvent partnership, the bba’s ‘ceases-to-exist’ rule in partnership termination transactions.

TAX PRACTICE MANAGEMENT

To get through the rigors of tax season, CPAs depend on their tax preparation software. Here's how they rate the leading professional products.

EMPLOYEE BENEFITS & PENSIONS

The 2022 act affected a wide array of retirement fund and pension plan provisions. This article highlights many of the most noteworthy ones, along with relevant IRS guidance and congressional plans for technical corrections.

RV Tax Benefits and Deductions You Should Know About

Can You Write-Off Your RV From Taxes

Rv tax benefits, mortgage interest, rental business, business travel, rv tax deductions, rv as a second home, sales tax deduction, registration fees, business taxes.

• Choosing a selection results in a full page refresh.

Thanks for subscribing!

This email has been registered!

Shop the look

Choose options, edit option, back in stock notification.

Choose the ID of the Quiz you want to render (link popup, external link popup, email link popup):

• Skincare Quiz (Basic Routine) (copy) #quiz-meHvAAz (internal) or https://trailervalet.com/#quiz-meHvAAz (external, email)
• Demo Quiz (copy) #quiz-vwHvvG (internal) or https://trailervalet.com/#quiz-vwHvvG (external, email)

Top Tax Deductions for RV Owners You Need To Know Of

• Latest Posts

• What Size Travel Trailer Can an F150 Pull - June 13, 2024
• RV Propane Fill Stations Guide - June 12, 2024
• What is Boondocking: All Your Questions Answered! - June 12, 2024

While talking about RVing may be one of your favorite things to do, talking about taxes probably isn’t. However, it’s a necessary evil, and the two overlap, believe it or not, so you’ll want to read on to find out how you can maximize your deductions at tax time.

If you have an RV that you use for traveling, you may not already know that you can take some deductions on it. Whether you live in a house and you only use your RV and house trailer part-time or you live in an RV full-time like a regular nomad, you can take advantage of some of these deductions to get the most out of your RV lifestyle.

For RV owners who live in an RV full-time, our tax deductions are limited when it comes to the traditional brick-and-mortar homeowner. However, there’s an overlap you’ll want to know about because you can still take some of these deductions and you may not even know it.

1. Deduct the interest on your RV loan

If you own an RV, you likely financed the cost. RVs are expensive. Even the cheapest RVs cost tens of thousands of dollars so it’s important to be ahead of your RV financing . If you do have a loan on your RV, you can deduct the interest, much like you can deduct the interest on your home loan.

This RV tax deduction (as well as the sales tax, personal property tax deductions, homeowner tax deductions, and home mortgage interest deduction) is only available to those who have enough deductions to itemize using Schedule A. Because full-time RVers no longer have a brick and mortar home, this typically eliminates them.

Without a mortgage and real estate taxes, it can be tough to qualify for a business tax deduction on this one, but there are exceptions, so seek help from a accountant or tax specialist to find out more. In fact, don’t be discouraged, because when you add in medical expenses, charitable giving, and state and local taxes, you can use this form.

Look into what the standard allowed deduction is for you, whether that’s single or married because it changes every year. If your deductions add up to more than that, your RV qualifies as a first home (or second home, if you have a mortgage interest deduction), and you can deduct the interest. Yay!

There are a couple of other caveats to keep in mind here. You cannot deduct the interest on your RV loan if your loan is not secured by the RV and if you are already taking deductions on two other homes.

2. Take the home office deduction if you work from your RV

Let’s take a moment to remind ourselves that you can always deduct business expenses. If you are traveling for business, you can deduct your expenses. That means a portion of your gas, mileage, food, and lodging. Now, as for whether RVers qualify for the home office deduction or not is a different story. You can qualify, but it’s pretty difficult to do. Let’s go over how the deduction works.

The IRS requires that in order to take a deduction for a home office, you must use that space exclusively for business purposes. Because RVs are so small, it’s tough to dedicate a space 100% to business and it’s very difficult to prove this exclusive use.

Even if you did dedicate a space for business use only, it would be so small that it’s hardly worth keeping the documentation and making the calculations. It’s usually not worth the hassle to take this deduction. In many RVers’ experiences, even a small amount of recreational use doesn’t sit well with the IRS and it could result in your deduction being denied, or worse.

With that, you may consider that in recent years, the IRS has allowed for a more simplified home office deduction, making it easier to compute. While the space must still be used exclusively for business, you can calculate $5 per square foot up to 300 square feet.

You also have to keep accurate records, and RVs with this deduction tend to raise a red flag. There are better ways to make use of your small living space and get the most out of your RV tax deduction.

3. Rental deductions

Here’s a totally different spin on a business deduction. Your RV is the business. That’s right. If you use your RV as, say, an Airbnb more than 50% of the time, you can deduct your rental income on your taxes.

Pretty cool, huh? You have to be diligent about how you record business vs. pleasure and document your rental income diligently. Depreciation is also another easy write off if you’re using your RV as a business. It’s a great way to recoup some of your costs.

The details can get hairy, as far as how many days it has to be rented, how many days you can use and live in it, etc., so consult a tax attorney for more information on how it works.

4. Deduct your phone and internet

Let’s say you work on the road. You need your phone and internet, right? This business tax deduction is available to you if you operate your business on the road. The tricky part is calculating the percentage of business usage for each. You can’t deduct personal cell phone and internet use.

A good way to estimate your business use is to track it for a couple of months and then average it over the rest of the year. Try not to claim more than 50% business use unless you can prove it.

Remember that you’re using your data for personal emails and texts, streaming, researching travel, and phone calls. But certainly don’t leave this deduction off. It can really help you with tax savings, especially when you’re trying to stay connected on the road.

5. Deduct mileage for your travel

If you have a motorhome rather than just an RV you tow, you can deduct the mileage you drive for business. Just like you would in your car, you’ll want to keep detailed records of these miles. It doesn’t matter whether you are running errands for your business or meeting a client for coffee. You need to keep a note of the date, the round-trip miles, the purpose of the trip, and who you were meeting or the store you went to.

Not only does this make it easy at tax time to record your deductions, but it will help you prove your deductions to the IRS if needed.

This can get tricky, because let’s say you need to travel to another city to meet a client, and you and your family decide to hop in the RV and do some sight-seeing while you’re there. Is the purpose of the trip business or recreation? Can you deduct the miles you travel or not?

You can, in fact. If your primary reason for traveling in business, you can deduct the miles from Point A to Point B as a business expense. However, there’s still a bit of gray area here, so be careful. Point A has to be your place of business more than 50% of the time, whether that’s your home or your office. And in some cases, more than 50% of your trip has to be for the business before you can deduct that mileage.

Just remember, deducting thousands of miles begins to look suspicious to the IRS, so it doesn’t mean you can’t travel for business in your RV and deduct the mileage, it just means you need to be careful what you designate as business vs. pleasure.

6. Claim the mileage on your car

Here’s a pro tip. If you don’t feel comfortable claiming the mileage on your RV, especially if you’re a full-timer, claim the mileage on your car instead. If you have a toad (that’s a towed vehicle) that you use while you’re at your destination, you can take deductions on that mileage.

You likely split your time in this vehicle between business and personal use, so you’ll have to divide your expenses and keep detailed records, but you can keep track of your mileage and claim it as a deduction, even if you decide to skip out on the RV mileage deduction.

Deducting the mileage of a towed vehicle is usually a lot easier and doesn’t raise as many red flags. There are two ways you can calculate your mileage. The first is the standard mileage rate (which changes every year) x the number of business miles you drove.

The other is a calculation of the average expenses for business use, including RV insurance , maintenance , and gas. The standard mileage is usually easier to figure out and will result in a larger deduction, but every situation is different.

7. Sales tax and income tax deductions

If you paid rv sales tax deduction on your RV, you can deduct it. There are several states that don’t charge sales tax, and obviously, if you didn’t pay it, you can’t deduct it. The IRS also places a limit of $10,000 on the amount of sales tax you can deduct.

However, you still have to have enough deductions to itemize on a Schedule A. If you’re itemizing your deductions on your Schedule A, you can claim either your state and local income taxes or your state and local sales taxes. It’s in your best interest to do the math to figure out which gives you the most RV tax benefits.

When you make a large purchase like an RV or a vehicle, it’s typically better to take the sales tax deduction, but it can depend on your tax rate and your personal income. For instance, if you live in a domicile state without income tax, you’ll want to take the sales tax deduction.

8. Personal property tax

If you’re domiciled in a state with personal property tax, you’ll want to take that deduction, too. You can take this deduction on any personal property, like a car, truck, SUV, or RV. It’s just one more thing you can itemize on your Schedule A to help put you over the threshold.

However, many full-timers are domiciled in states that don’t have personal property tax, which is a great thing because you don’t have to pay it, but simply means you can take fewer deductions at tax time.

9. Domicile

I’ve thrown this term around a few times already, so we need to clear the air. Your domicile state is where you’ve set up your permanent address and where you file your taxes. Some states have an income tax, sales tax, and personal property tax. Others don’t.

Some states don’t require you to show up in person to renew your driver’s license while others have a renewal period of every 10 years. You can see why any combination of these things would be great for full-time RVers.

The most popular domicile states are South Dakota, Florida, and Texas. However, Oregon doesn’t have sales tax and Tennessee doesn’t have an income tax. Some people prefer to keep their domicile state in their home state, even though they don’t reap any of these tax benefits.

Take these things into consideration when deciding whether or not you want to RV full time and how you might want to file your taxes in the years when you’re on the road.

10. Install solar panels for solar credit

The government will give you a bonus deduction if you install solar panels on your home, but did you know they’ll also do the same if you install them on your RV? That’s right. Anyone who installs solar panels on a personal residence , including an RV, will get a deduction.

It’s a non-refundable credit on your 1040 that you can carry forward if you don’t have enough tax liability to take it right away.

11. Health insurance premiums for the self-insured

Many full-time RVers are self-employed and, therefore, self-insured. That means you can deduct your health insurance premiums. If you get your health insurance from the marketplace or any other private insurance company, you qualify to take this deduction.

It goes on your 1040 and helps to bring your income down, which is helpful when determining your premiums for the next year.

Keep in mind that health share ministries do not count toward these health insurance premiums, so you cannot deduct these. This deduction is also limited by your business income.

12. The 20% pass-through deduction

This deduction started in 2018. It’s part of the Tax Cut and Jobs Act. It gives a 20% deduction to people with self-employment income, including partnerships, sole proprietors, and S-Corp owners.

While the deduction is complicated and may be limited by your income, you can qualify with a taxable income of less than $315,000 if married and filing jointly or $157,500 if filing singly. You must also have a net profit from a small business.

This is a good one for those who are self-employed, which includes many RVers.

13. Ad valorem tax or ‘use tax’ deduction

Some states, like Massachusetts and Georgia, apply a use tax to cars, boats, and RVs. You pay it upfront when you get your tags, but it’s deductible on your Schedule A. It has to fit into the same $10,000 limit as your sales tax, but if it does, you’ll want to take it.

14. Taking a standard deduction

The last decision you have to make is whether you want to take any deduction at all. It takes a lot of itemization to make deductions worthwhile.

For some people, itemizing deductions simply isn’t worth the hassle. While you may get quite a deduction for your itemizations, the standard deduction is also quite significant, and itemizing your deductions is a lot of work.

Itemized deductions include medical expenses, charitable contributions, state taxes, local taxes, sales tax, mortgage interest (or RV loan interest), and a few other things we’ve already mentioned here.

If you don’t have enough to make an itemized deduction, you can take the standard deduction. You may also choose to take the standard deduction if you simply don’t want to keep a record of your itemized deductions throughout the year.

Can you use an RV as a tax write off?

There are many ways you can take deductions on your RV, from the sales tax and personal property tax to mileage or for use as a home office. It just depends on how you use the RV. Make sure you do what works best for you and research the ins and outs of the particular deduction you want to take.

As an RV owner, there will be some deductions you don’t qualify for, especially if you’re a full-timer, but there are plenty of opportunities to try.

If you’re living in your RV, the IRS may consider it a home, which means you can deduct the interest if you currently have a loan. It’s definitely worth looking into because if you don’t have a home, you won’t have this itemized deduction, which clears up some room on your tax return.

Can you write off an RV as a business expense?

This is a tricky question because there are a lot of different business deductions you can take. There’s a home office business deduction, mileage deductions, and internet and phone deductions, just to name a few.

You can technically use them all if you’re living in an RV, but some are harder to claim than others, and it depends on your circumstances. For instance, for the home office deduction, you have to be able to prove that you use that space exclusively for business.

In something as small as an RV, that can be tough to do, though not impossible. The mileage and phone and internet deductions are easier to take, as long as you keep detailed records of each expenditure.

Does my RV qualify for section 179?  

If you use your RV for business use only (as in you rent it out on Airbnb) and you do not use it for personal travel at all, you may qualify for a Section 179 deduction. If you don’t live in it or travel for recreational purposes, and every overnight stay is for business, this qualifies as transient lodging.

Both transient lodging and overnight stays for business qualify for Section 179 deductions, which give you big benefits on your personal taxes. Just make sure you understand the law, and seek help before you file if you need it.

Final Thoughts

Taxes can be confusing, and if you have any questions at all, you should consult a tax attorney or professional to help. We’ve just brushed the surface of tax deductions for RVers and how they work.

Look into the ones that work for your specific situation to make the most out of your deductions. Because the IRS regularly changes these deductions and how they can be taken, it’s important to keep updated or work with someone who knows.

Similar Posts

Good Sam Roadside Assistance Review: Do You Need It?

About Latest Posts Justin CaldwellRV Enthusiast at RV PioneersJustin Caldwell travels in an RV with his family in their 45 foot Jayco Toyhauler. He’s very handy and knows how to do DIY jobs to fix the RV if there are problems. He gives his best tips on RV Pioneers for how to RV full time…

Progressive RV Insurance Review: Pros and Cons

RV insurance is a critical component of RV ownership, whether you travel frequently or only a few times every year. All insurance companies offer different coverage options, and some even go through third parties to provide everything you need because they can’t underwrite the policies in-house.

Progressive offers RV insurance policies at a reasonable price, but you may find some of the other aspects of their service a bit lacking. If you already have Progressive auto insurance, it may be worth it for the multiple vehicle discounts. Otherwise, think hard about whether you want these insurance policies for your RV.

Coverage and Benefits

Progressive offers a couple of different insurance plans, but because they tailor their plans for auto coverage, you’ll find more of w

Allstate RV Insurance Review: Is it Any Good?

“Allstate. Your in Good Hands ®”

Hitting the open road with an RV gives you the freedom to travel in comfort. They can provide power and water, off the ground shelter, multiple storage spaces, beds, living quarters, air conditioning, room to accommodate a small group of friends and family, to full bathrooms and island kitchens!

Like your automobile, RV’s also require a certain amount of Insurance coverage in case the inevitable happens.

Allstate is an Insurance Company that is on the New York Stock Exchange [NYSE: ALL]. They were founded in 1931 and their headquarters are located in Northfield Township, Illinois, and provide coverage on three continents.

Geico RV Insurance Review and Guide

State Farm RV Insurance Review: Is It Worth It?

Gather any group of RVers, whether in an online forum or around a campfire in a campground, and often the conversation will turn to RV insurance. Why? Because an RV is an investment and having the right insurance is important – and complicated. Why is RV insurance so confusing?

One reason for the confusion is that there are so many individual factors that affect the type of coverage you need for your RV. Is your rig drivable or towable? What level of coverage is required by your state or residence? How often do you use it and where do you prefer to park it? Do you own your RV outright or are you still making payments? Answering these questions is just the beginning of determining what type of insurance you need.

The next decision is which insurance company can best meet your RV insurance needs. Most companies that provide auto insurance will also have RV coverage options.

Liberty Mutual RV Insurance Review: Is This The Right Service For You?

While we normally review the latest RVs or the best accessories to get for your motorhome, in our Liberty Mutual RV insurance review we’re going to look at something a little bit different.

Hitting the open road and going on wonderful adventures with your RV is a great way to explore the country but what happens when something goes wrong?

You no doubt have home insurance to cover unforeseen circumstances in the future so does it not make sense to insure your RV as well?

We’re going to look at whether you actually need RV insurance, the types of insurance available and also review Liberty Mutual RV insurance to find out if it is a worthwhile policy and provider to choose.

RVing Guide

Real People. Real Experiences. Real Helpful.

Before You Buy An RV Outdoor Fun

Tax Deductions For RV Owners – A Fulltime RVer’s Personal Experience And Advice

By Curtis Carper

Before we know it, our least favorite time of year will be coming around again: April 15th, the deadline to file your taxes !

There’s nothing wrong with paying taxes.  Our country is one of the best places in the world to live — thanks to what our taxes do for us.  On the other hand, there’s no reason to give Uncle Sam any more money than he’s entitled to, right?

The purchase of an RV is a large investment for most families.  One thing that may help soften the blow to your budget is the fact that your RV purchase will be partially offset by some very helpful tax deductions that are completely legal and fully supported by the IRS.

Yes, even Uncle Sam tries to help when he can.

The RV As A Second Home Tax Deduction

Most RV owners buy their rigs with an RV loan provided by some sort of financial institution.  In turn, when you get a loan you are charged interest.  In most cases, interest paid on a loan is not an acceptable deduction .

Most loans (like car loans, credit cards, and unsecured loans) don’t meet the requirements necessary for them to be deducted.

So is an RV loan tax deductible?

Generally, no.

The only loan interest payments that are acceptable tax deductions today are home mortgage interest payments.  Your mortgage holder will supply you with the needed information to determine what portion of your monthly payment went toward the finance charge, or interest portion of the loan.

Now, this is where your RV comes into the picture…

Owners of “second homes” may also deduct the interest portion of their payment on that dwelling as well .  And yes, your RV qualifies as a second home.

There are a few basic requirements that must be met to claim your RV as a second home. For example, it must have on-board permanently mounted sleeping, eating, and bathroom facilities.  The point being: throwing a bed roll into your van doesn’t make it a motorhome.

5 Other Legitimate Tax Deductions For RV Owners

Here are 5 more RV tax deductions that you can take as an RV owner:

#1 – A loan on your travel trailer or fifth wheel does qualify for the interest deduction, while unfortunately the loan on the truck used to tow it doesn’t.  Apparently, the government doesn’t see the point in moving your second home to new locations.

#2 – A portion of your RV’s vehicle registration can be another tax savings.  In some states that don’t have personal property taxes, the annual vehicle registration contains both a portion based on the weight of the vehicle and a portion based on the value.  The portion that relates to the value is a tax-deductible expense.

#3 – You may even be able to deduct a portion of the sales tax you paid on a new motorhome or RV trailer that you purchased during the past year, too.  There’s a worksheet on your tax form that will determine how much you’re allowed to deduct.  This is a one-time deduction, but with the sizable investment of an RV, sales tax is a large piece of your purchase price.  Getting some of that back in the spring will be helpful for sure.

#4 – If you happen to be a business owner (even if yours is a small home-operated business), and your business requires you to travel or work out of your RV on a regular basis , then you can move into another whole world of tax deductions known as business expenses .

#5 – There is no better way to save money on your taxes than to be in business for yourself.  Any expenses related to operating your business come right off the top, reducing your net taxable income by the total amount of the expense.  If your RV is primarily used to entertain and build relationships with other businesses, or is used to transport your company’s staff from one job location to another, you may find at least some (and possibly most) of the cost of owning your RV will be classified as a business expense .  Of course, any percentage of its use that is personal in nature wouldn’t be an allowable deduction.

This IRS 1040 Worksheet (.pdf) shows you the various tax deductions that are allowed on your income tax concerning RVs.

The Bottom Line…

You should consult with your personal accountant or a tax specialist to find out exactly how you can make your RV work for you .

You may find it surprising how many hobbies can be turned into profitable businesses — all wrapped around the RV lifestyle!

Even More RV Tax Deductions

In addition to the links I’ve included above, here are some other  resources to help you find additional tax deductions for RV owners:

• RV Tax Breaks For Your Office On Wheels
• Self-Employed RVers Get Tax Deductions
• Tax Deductions For Buying An RV
• Can You Deduct The Interest On Your RV Loan? (More here )
• Tax Deductions For RVs & Motorhomes

I’ve been involved in RVing for over 50 years — including camping, building, repairing, and even selling RVs and motorhomes. I’ve owned, used, and repaired almost every class and style of RV ever made. I do all of my own repair work. My other interests include cooking, living with an aging dog, and dealing with diabetic issues. If you can combine a grease monkey with a computer geek, throw in a touch of information nut and organization freak, combined with a little bit of storyteller… you’ve got a good idea of who I am. To date, I’ve shared my RV knowledge in over 300 articles here at The Fun Times Guide! Many of them have over 25K shares.

My DIY Cargo Van Conversion To A Class B RV – Step 2: Installing Items On The Roof (RV Solar Panels, A TV Antenna, And An RV Roof Vent)

My diy cargo van conversion to a class b rv – step 3: insulating the floor, roof, and walls, featured articles.

RV Toilet Repair – How To Fix That Problem Toilet Yourself (It’s Easy!)

RV Water & Waste 101 – Black Water, Gray Water & Potable Water Problems To Watch For

The Absolute Truth On How Fix A Clogged RV Toilet AND Eliminate The Possibility Of Future Clogs When RVing

• Tax Preparation
• Tax Strategy
• Mini Tax Plan

Nomad Business Academy Coming Soon: Get on the waitlist today to be the first to know!

• January 23, 2017

Unfortunately, for us RV owners who full-time, some of our deductions are limited as compared to a sticks and bricks homeowner. However, there is some overlap. As an RV full-timer myself, I understand the limitation of tax deductions for RV owners. I also get asked similar questions often. Let’s dive into the top 4 questions I get about deductions for RV owners.

1. Can I take the interest on my RV loan?

First, the basic tax deductions for RV owners include loan interest, sales tax, and personal property taxes. Keep in mind they are only available to taxpayers that have enough deductions to itemize using Schedule A.  That eliminates most full-time RVers because they no longer have a sticks-and-bricks with a mortgage and real estate taxes. Without the mortgage interest deduction, most RVers don’t have enough deductions to itemize.  The standard deduction works out better for most. (There are exceptions to this, so get in touch to help with your specific situation.)

If your deductions add up to more than the standard allowed for your tax situation (single, head of household, married filed jointly), you can include your RV loan interest on your Schedule A itemized deductions. If you own a sticks-and-bricks home, then your RV (cooking area, bathroom and sleeping space) qualifies as a second home. This means you can take the interest from both your sticks and bricks home and your RV on your itemized deductions.

To sum it up, you can deduct RV loan interest IF 1) the loan is secured by the RV, 2) you have enough deductions to itemize on Schedule A, and 3) you are NOT already taking a mortgage interest deduction on 2 other homes.

2. I work from my RV. Can I take the home office deduction? If not, what deductions can I take?

Before I go any further, I want you to keep in mind that you can deduct actual business expenses regardless of qualifying for a home office deduction or not.

With that said the home office deduction can only be taken for an office that is used 100% exclusively for business purposes. Usually, with a small home like an RV, there isn’t enough space to dedicate to an office exclusively and it would be VERY difficult to prove exclusive use. Plus, because the area used for business in an RV is so small, it usually isn’t worth the time and trouble to make the calculations and keep the documentation. I would highly recommend not taking this deduction and look at other business expenses for deductions.

In recent years, the IRS does allow for a simplified home office deduction which makes it easier to compute ($5/square foot up to 300 square feet), but once again keep in mind the office must be exclusively used for business purposes. If you have a specific question for your unique situation, talk to a tax professional for some guidance.

In any case, you must keep concise records.  Lack of documentation alone can get your deductions denied by the IRS. The IRS does offer  Publication 587 – Business Use of Your Home  and it can be a valuable deduction for those with a larger home and a designated office space. However, I reiterate it usually is not worth raising the red flag and taking this minor deduction for those living in a small space like an RV.

3. Can I claim my RV mileage as a deduction? Can I deduct business expenses for my car?

I would not take business mileage of an RV since it is your home. However, you might qualify for some mileage deductions on the business use of your car or truck. It depends on specific facts and circumstances of the mileage. If you use your truck or towed vehicle to get to a specific job, client or to run business errands, then those miles count.

Since your car or truck is most likely used for both business and personal use, you will divide your expenses between them based on actual mileage. Refer to  Publication 463, Travel, Entertainment, Gift, and Car Expenses  for further details and to see  standard mileage rates  for each year. It’s always best to keep detailed records using paper, spreadsheets or an App like MileIQ to help you keep track of mileage accurately. Then it can be determined if those miles would count towards a deduction or not. Plus, then you have the proof you need to prove business use of the vehicle.

There are 2 different ways to take auto mileage deductions. One is the standard mileage rate x the business mileage. The other is the division of expenses (insurance, maintenance, gas, etc.) for personal and business use. You’ll need to do the math here to figure out which is better for your situation. I typically find that the standard mileage works out to be a larger deduction.

Once again each situation is unique. Be careful about raising a red flag with the IRS. It can get sticky pretty quickly and without detailed records, it can be hard to prove. I always say it’s best to avoid raising suspicion for what is often a very minor deduction.

4. Can I deduct my RV sales & property taxes?

The short answer here. Yes, if you have enough deductions to itemize. No, if your deductions don’t add up to more than the standard deduction.

If you itemize deductions on a Schedule A, you have the option of claiming either state and local income taxes  or  state and local sales taxes. If you live in a state with income tax, it’s best to work out the math for each.

Typically in a year, you purchase an RV or even a car/truck, you might qualify for the sales tax vs. the income tax. It also depends on the tax rate and your personal income. For anyone with a domicile state without an income tax, the sales tax deduction (especially with the purchase of a large item such as an RV or car/truck) might be the way to go.

Many full-timers are domiciled in states that don’t have personal property taxes and several states don’t even have personal property taxes, to begin with.  Obviously, if you don’t pay this tax, you can’t deduct it.

If your domicile state has personal property taxes, you can take this deduction on any car, truck, and RV. If this is the case, then include your RV personal property taxes.  However, once again, if you don’t have enough deductions to itemize, you can’t take this deduction.

What do Ido?

As a full-timer without a sticks-and-bricks home, I don’t have enough deductions to itemize. I also do not have personal property taxes on my vehicles. I do, however, have business use of the truck which I do deduct.

Home Office Deduction

Although I took a home office deduction when I owned a house, I don’t since moving into the RV. I understand that our RV expenses are personal. It is the lifestyle I chose and is unrelated to running a business. The RV is simply my home and the costs of upkeep, insurance, etc. are not related to running our businesses.

Phone and Internet

I am able to deduct my cell phone charges since I have 2 plans & 2 different numbers – one for business and one for personal. I also take office supplies, business postage, advertising costs, software for business purposes, website hosting, contractors, and anything else that is directly related to the production of my business income.

Lastly, internet costs should be split between business and personal use. This means keeping track of business use vs. personal use for a month or two and make that your average.

Example : You use 75GB of internet during a month. Let’s say the business use is 45GB. 45/75 = .6 This means you take 60% of internet costs as a business expense.

I do deduct mileage for running business errands or attending a business meeting, it is always well documented with any receipts scanned and business purpose recorded. Travel can be a tricky deduction so I urge you to learn more .

I  keep track of all of my mileage using an app. In addition, I write down beginning and end-of-year mileage for the truck to be able to calculate the percentage of business use. I usually use the standard mileage deduction since it usually works out higher. However, with high maintenance costs, the percentage of actual expenses might be higher.

Needless to say, I keep very good records. This is so I can back up all our income and expenses as reported on my tax return. I will take any deduction allowable to us, but nothing that will raise red flags. The last thing I want is the headache of an audit.

What’s your burning question about RV business expenses?

Want even more RV Tax Deductions? Check out my course that reviews all your write offs and MORE. 

I’m a numbers person—but don’t let that scare you. I’ve been an enrolled agent (EA) since 2014 and a nomadic business owner since 2016. Because I’m a nomad myself, I know exactly how stressful life on the road can be.

Nomad Business Academy

Nomad Business Academy offers mini-courses on everything you need to know to run a nomadic business, from which business entity is right for you (and what a “business entity” even is) to how to navigate self-employment taxes to learning if S Corp is a good fit for you and so much more.

Disclaimer:

This website is for general information only and is not intended to substitute for obtaining legal, accounting or financial advice. It is not rendering legal, accounting or other professional advice. Presentation of the information on this website is not intended to create a client relationship. For specific tax assistance please consult a tax professional on an individual basis.

While I make every effort to furnish accurate and updated information, I do not guarantee that any information contained in this website is accurate, complete, reliable, current or error-free. I assume no liability or responsibility for any errors or omissions in its content.

Related Posts

Tips for Taking Mileage Deduction as a Business Owner

Insider Tips on When to Create an S Corp

7 Essential Steps to Close Your LLC

How to Navigate the Request for a Mortgage Comfort Letter

Simple Guide to Proactive Tax Planning for the RV Entrepreneur

Share your thoughts cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Privacy Overview

Grab your free ticket to the know your numbers workshop, join me on wednesday, september 20th at 1 pm et/11 am mt and i'll show you exactly how to conquer your business numbers without the stress, get your 2023 financial planning workbook sent directly to your inbox, have my tax write-off checklist sent directly to your inbox.

• Discuss your taxes
• News & Announcements
• Help Videos
• Event Calendar
• Life Event Hubs
• Champions Program
• Community Basics

Find answers to your questions

Work on your taxes

• Community home
• Discussions
• Deductions & credits

We started renting out our RV through RV share. Can I claim this as a business? What paperwork do I need? and what can I write off?

Do you have a turbotax online account.

We'll help you get started or pick up where you left off.

• Mark as New
• Subscribe to RSS Feed
• Report Inappropriate Content
• TurboTax Deluxe Online

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

• « Previous
• Next »

Still have questions?

Get more help

Ask questions and learn more about your taxes and finances.

Related Content

We are a two-member LLC filing form 1065. Both of us actively operate the business as cosmetologists. However Box 14 (Self-Employment Earnings) on Schedule K-1 is empty

allthingsfantast

My spouse and I own a business together. How do I split the 1099s in Turbo Tax?

Fisher101328

House built for Sale

Samantha123

Reinstalling TurboTax Home & Business previous years

Did the information on this page answer your question?

Thank you for helping us improve the TurboTax Community!

Sign in to turbotax.

and start working on your taxes

File your taxes, your way

Get expert help or do it yourself.

Access additional help, including our tax experts

Post your question.

to receive guidance from our tax experts and community.

Connect with an expert

Real experts - to help or even do your taxes for you.

You are leaving TurboTax.

You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.

This post may contain affiliate links or mention our own products, please check out our  disclosure policy

Can You Write Off Your RV as a Business Expense?

• Rene Agredano
• September 27, 2015

Table of Contents

I know this is crazy to consider, but have you looked at the calendar? It’s almost the end of the year and time to start tidying up your tax picture!

But wait: before you call H&R Block, if you’re a full-time RVer who lives and works or volunteers on the road, you want to make sure you get the right person to file your tax paperwork. Don’t be fooled into thinking that deducting expenses for your full-timing lifestyle is the same as when you lived in a stick house. Living and working from your RV paints a very different tax picture, so before you try to write off your RV payment and associated costs as a “small business” expense, take a minute to learn more about how the tax laws affect – and benefit – you as a full-time RVer.

Is this a tax-write off?

Most tax and accounting professionals are not well-acquainted with our oddball lifestyle. You’ll want to work with a knowledgeable numbers and tax law guru who understands the intricacies of tax filing for full-time RVers. Ask around on full-time RVing discussion forums and groups, you’re likely to find a professional who can keep you as far away from the audit trail as possible.

We hunted around and found George Montgomery , a former full-time RVer, business man and enrolled agent for the IRS. He wrote a book called “ Can I Write Off My RV? What Every RVer Should Know About Taxes ” which is a great place to start your full-time RVing tax picture research, even if you don’t choose him as your tax preparer.

One of the most interesting things I learned from George’s book is that if a full-time RVer has no primary residence other than their RV, none of the lodging portion can be written off, but some deductions can be taken if the RV is being used for business. What a surprise to learn that this is completely opposite of the way I always understood the “sticks and bricks” home office deduction, which my husband and I have always taken advantage of since we became self-employed in the 1990s.

Other surprising facts include:

If you want to deduct the initial cost, depreciation and the maintenance of the RV, you must prove that it’s being utilized in certain ways, such as solely for business use or volunteering missions that require use of the RV. Whether or not you can take a full or partial deduction also depends on how well you can prove usage through travel diaries and RV mileage log books, which Montgomery discusses extensively in the book.

This is a quick and uncomplicated read, and you’ll find many helpful suggestions for determining which living and work expenses are deductible. You’ll also learn how to keep good records in the event you need to prove their legitimacy to IRS auditors. To help you get started, Montgomery has designed a basic Excel workbook geared toward new entrepreneurs who lack a bookkeeping system like Quickbooks pro.

Check out George’s book and consider taking his Workamper news course . When the IRS doesn’t come knocking, you’ll be glad you did.

You May Also Like:

Fifteen fantastic oceanfront rv resorts, how to build the perfect outdoor rv kitchen space, priest gulch campground: colorado camping at its finest, why now is the right time to start planning fall rv camping adventures.

• 10 Essential Tips to Keep Your RV Fridge Cool in Hot Weather

RV Speak: A Definitive Guide to RV Terms

Alaskan coast camping at homer/baycrest koa holiday, 10 amazing hot air balloon festivals to visit in your rv, 10 top rv storage solutions, 4 thoughts on “ can you write off your rv as a business expense ”.

I recently bought a RV and would love to go RVing full time. How do you find places to stay in the fall and winter tines? Any information you can give would be geeatly aporeciated.

Congratulations Sally! That is a great question and I’m happy to address it in my blog post for this Sunday, October 4 so stay tuned! Thanks for reading.

Great stuff!

Do you know if these tax rules also apply in Canada?

We’re considering hitting the road in a used RV. I’d be working full time in it, but we’d also be travelling with our children, so I have the feeling we wouldn’t be able to claim much of anything. We’d still keep our primary residence, though, at least in the beginning.

I recently purchased an rv and moved it to my friend’s property. I do not live full time in the r.v. and rarely use it for travel, but I do use it for my business office and personal storage. Is it legal to use as a permanent, fixed office space?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Welcome! Please follow these guidelines:

• Be kind and respectful.
• Keep comments relevant to the article.
• Avoid insults, threats, profanity, and offensive remarks.
• Refrain from discussing gun rights, politics, or religion.
• Do not post misleading information, personal details, or spam.

We may hide or remove comments at our discretion.

I have read and accepted the Comment Guidelines and Privacy Policy *

Recent Posts

Browse By Category