Mobile home owners must not rent their mobile homes for more than 14 days to qualify for the full interest deductions.
Taxpayers who own motor homes can take advantage of several tax benefits to help them offset the costs of owning their recreational vehicle. The IRS allows recreational vehicle owners to deduct the interest from their monthly motor home loan payments. Additionally, although the sales tax credit is no longer available, motor home owners were able to take advantage of the stimulus credit.
Interest Deduction
The IRS provides homeownership incentives for taxpayers who purchase qualifying property used as their main or second homes. Qualifying purchases include motor homes as long as they treat their motor homes as a primary residence or second home. Taxpayers do not have to use their motor homes for a minimum period to qualify but must simply treat the home as a vacation or second home.
Secured Loan
To claim the deduction, recreational vehicle owners must itemize their tax deductions using the long-form or 1040A tax return form. Taxpayers use Schedule A to claim their interest deductions and may refer to their lender-provided 1098 Form to obtain the total amount of interest they paid during the previous tax year. The IRS requires motor home owners to purchase their vehicles with a secured loan to qualify for the tax deductions. Secured loans provide lenders with rights to reclaim their recreational vehicles when taxpayers default on their loan payments. Unsecured loans do not provide lenders with rights to reclaim their property.
Home Features
To qualify for the deduction, taxpayers must have access to certain amenities in their mobile homes. First, the IRS requires the home to contain sleeping facilities that are permanent -- simply placing sleeping bags on the floor will not qualify as permanent sleeping facilities. Secondly, the motor home must contain a designated toilet area. Since most mobile homes have permanent, self-flushing toilets or cassette toilets, motor home owners do not usually have to be concerned about fulfilling this tax requirement. Lastly, the mobile home must contain a kitchen or cooking area.
Sales Tax Deduction
Limited to 2009 purchases, taxpayers could claim tax deductions for sales taxes paid to purchase their mobile homes. The IRS limited the deduction to $49,500 for vehicles purchased between February 17 and December 31, 2009. Taxpayers could deduct excise and sales taxes on their 2010 returns.
Considerations
Since tax laws can frequently change, you should not use this information as a substitute for legal or tax advice. Seek advice through a certified accountant or tax attorney licensed to practice law in your jurisdiction.
Tags: home owners, mobile homes, motor homes, motor home, motor home owners
