Tax deduction questions on SMB - Page 2

**BroncoHauler** · 07-14-2009, 01:31 PM

Quote:

Originally Posted by MikewTV

This is interesting that you guys are able to do this. I know SMB touts on their website that you can claim the interest. My CPA in NYC said no way. He said maybe if you were full timing but not if it's just your RV for vacations.

That's odd. I don't know many people who full-time in a second home. Kind of makes it the primary home, doesn't it?

Herb

deminimis · 07-14-2009, 01:32 PM

Quote:

Originally Posted by MikewTV

This is interesting that you guys are able to do this. I know SMB touts on their website that you can claim the interest. My CPA in NYC said no way. He said maybe if you were full timing but not if it's just your RV for vacations.

No one full-times in a second home, that's why its a "second home" and not a "primary residence." I know you can do it with a boat if it has a berth, head and stove. From what I've been looking at, my response is yes you can deduct the interest if you have a bed, stove and porta potty in your SMB. We're talking federal, second home, interest. Who knows what's what with the different states though. Perhaps your CPA was only talkign about NY State?

Scalf77 · 07-14-2009, 01:45 PM

I have taken it is interest on a second home every year since I've owned it. I did take out a "RV" loan and I have it registered as a RV. So from the standpoint of the State of Oregon it is a RV. I use Turbo Tax so I have not had "professional help with my taxes" but from my understanding I am taking a legal deduction.

Greg

deminimis · 07-14-2009, 01:57 PM

Yea Greg, doesn't this Oregon RV license fee suck! At least we can drink in the living area while going down the road. Of course, requires someone to be driving. Anyway, thanks Greg for the response. My interest was only $1200 last year, so trying to decide if worth re-doing all my taxes now (I forgot to take a state high efficiency appliance credit too). Yea, probably worth it, damnit!

Scalf77 · 07-14-2009, 02:39 PM

It sucks until I think about other states registration fees, and then I get smile on my face.

MikewTV · 07-14-2009, 05:21 PM

Well, maybe I need to raise this issue again with my tax guy. I've used him for 15 years and over that time I'm sure he's saved me a SMB or two which is why I've stuck with him. But, he is a bit Manhattan-centric so I don't think RV's are on his radar.

Psomaki · 07-15-2009, 10:41 PM

TurboTax instructions for 2008, and in past years, make it abundantly clear that interest paid on a loan for a second home is deductible, and that a second home is a facility that has sleeping, cooking, and toilet facilities. TurboTax specifically says that an RV can qualify. You can also decuct the interest paid on a home equity line of credit, but that's different - that's because you are borrowing against your primary residence. I've read for years, in IRS and other publications, that an RV (or boat or cabin or whatever) with the required facilities qualifies. As for CPA's and so-called tax experts, many of them cannot tell their donkey from a dug well. NOT ALL - I know some really canny CPA's. But some of them know less than the average guy about the ins and outs of tax regulations. If you are paying interest on a loan that bought your SMB, and are NOT deducting the interest paid on a loan secured by some other second home, go to it!

**daveb** · 07-16-2009, 12:07 PM

I've been deducting mine based on the information given to me at the time I picked up my van. John K just commented on this. Looks like I'm OK.

Quote:

Originally Posted by John Kalmbach

Bob,

While there was always debate about what actually needed to be installed in order to classify a van as a "House Car" (RV), the MSO (Manufacturer Statement of Origin) that SMB would submit stated that at least four out of six life support systems needed to be permanently installed according to ANSI standards. The six systems were;

Refrigerator or Icebox
LP Gas and/or 120VAC
Toilet
Fixed Plumbing
A/C or Furnace (while parked)
Cooking Appliance

I hope this helps.

John K.

Quote:

Originally Posted by John Kalmbach

I said "were" because I'm not sure if any changes have happened in the last year and a half. If the van was built to the codes that were in effect during the build date, you should be fine. If there were any changes to the codes after your build date, it would only effect those vehicles being built then.

As for the driver seat being able to swivel 180, I remember that it is possible on the '92 and newer Ford vans, but the steering wheel interferes with the seat back causing the seat back to be so vertical that the seat is not comfortable to sit in.

John K.