As long as the boat or RV is security for the loan used to buy it, you can deduct mortgage interest paid on that loan. In the event you decide to move back into a more traditional house, your boat or RV can also be treated as a qualified second home, and the same homeowner deductions apply.
Can I depreciate my RV?
The IRS allows you to depreciate an RV over five years. You can also use the section 179 deduction.
Do you qualify for the section 179 deduction for RV rental?
Should you live full-time in your RV, you don’t qualify for business use of your RV. Therefore, you also don’t qualify to take a section 179 deduction. This is where you list the RV on sites to rent it out to strangers using sites like Outdoorsy, RV Share, RVnGo, etc. You earn income and have expenses related to the rental.
Can you depreciate an RV as a business?
You can take your expenses at 75% of the costs. RV rentals only qualify for Section 179 deductions if used more than 50% for business. If you don’t have more than 50% business use, you can still depreciate the RV based on the percentage of business use. This is if you report the activity on a Schedule C.
Do you have to itemize RV tax deductions?
While business expenses related to business RV travel and an RV rental business will be listed on a Schedule C, RV sales tax deductions and RV loan interest write-offs must be itemized. In some cases, you will be better off taking the standard deduction rather than itemizing these things.
When do I qualify for the section 179 deduction?
If you personally use your RV strictly for business purposes with absolutely NO personal or entertainment use, then you might qualify for a Section 179 deduction. This applies if you have a sticks-and-bricks home and use your RV to travel to clients instead of flying or driving and staying in a hotel.
