mortgage on RV ? - RV-Dreams Community Forum

gauijons · RV-Dreams Community Member

mortgage on RV ?

Lucky Mike · RV-Dreams Family Member

not having to pay that money out every month while Im on the road!!!!......................LOL

cherylbrv · RV-Dreams Family Member

Totally agree with Lucky Mike!

I didn't know you could deduct the interest on an RV loan as a mortgage though!

PIEERE · RV-Dreams Family Member

I thought I read if it is purchased as a second home you can! I would miss the money paid on the loan and it feels better not to have a monthly payment.

Lucky Mike · RV-Dreams Family Member

If you are fulltiming and your income level is in a state that you need that deduction then it is Beneficial.....this is a question for your financial adviser. or tax preparer

of course the way things are going, benefits of having a second home are short lived as far as write offs go!!!!!

bjoyce · RV-Dreams Family Member

Will you have enough income that the mortgage interest will pay off for you in the next couple years? Once you take your normal deductions, then add health care deductions it might not matter.

Technomadia · RV-Dreams Family Member

The benefits will be highly independent upon your unique financial situation. Probably best to consult your tax advisor or financial consultant.

We prefer not having payments on anything, which gives us a lot of agility to ride the ebbs and flows of entrepreneurship. And a risk with financing a RV, especially a new one, is that they can depreciate in value pretty quickly. If you find yourself unable to be on the road, or the rig not meeting your needs - you may get trapped in an upside down loan.

- Cherie

bjoyce · RV-Dreams Family Member

Some friends took a financial hit selling their under water RV twice. Once because they had to come up with some of the difference, the bank would not eat it all. Twice because the write down from the bank was treated as income to them, so it hit them in taxes. "Be careful out there."

Lucky Mike · RV-Dreams Family Member

if your watching the general market.......we will take another hit within 4 years

Ckerr · RV-Dreams Family Member

The interest on an RV is tax deductible so long as it is either your primary or second residence.

That being said, as others have indicated, it depends on your unique financial situation whether this is a benefit or not.

We are in the process of looking for a new to us truck and 5th wheel. Currently we have payments on both the truck and the 5th wheel. Ideally we will be able to pay both off and not have a payment on the new set up.

However, if that isn't possible our plan is start with a paid for truck and finance the 5th wheel, since interest on the truck is not tax deductible. Of course it's a lot easier to get a truck loan so we'll see...

WestWardHo · RV-Dreams Family Member

If I remember correctly from a Rally, Howard pointed out the math on a RV loan didn't make much sense from an income tax deduction point of view but that you can deduct it. If I am misquoting Howard, I apologize! Do the math....calculate you interest and calculate the deduction then decide if its right for you, there are all kinds of calculators on line you can use for estimates.