RV Loans as a Tax Deduction?
The vast majority of individuals who finance their recreational vehicle may qualify to deduct the interest on their RV loan as a second home. Not only will you be able to enjoy the benefits of RV travel, you will likely receive a mortgage interest deduction as well.
To qualify, the Internal Revenue Service (IRS) has ruled that:
The RV Must be used as security for the loan. The RV must have basic sleeping, cooking, and toilet facilities.
Nearly all RV types – motor homes, travel trailers, truck campers and many folding camping trailers - are equipped with these facilities.*
*An RV with full facilities can qualify as a "dwelling unit" under the IRS code section 280A(f)(1). The U.S. tax court case of Haberkorn v. Commissioner. 75 T.C. 259 (Nov. 12, 1980 filed) gives further guidance on the tax deductibility of RVs.
The IRS description qualifies virtually every type of recreational vehicle on the market today! Even pop-up campers may qualify under this description. All you would need is a simple stove and porta-potty. So enjoy the benefits of RV travel and get a tax advantage too!
Taxpayers may not claim the interest
from more than two qualified
homes on their tax returns.
Ask your tax adviser for more
information. The information
contained within this article
is meant to be helpful and
informative, but not to take
the place of advice from your
financial consultant, accountant
or other professional.
Make The Loan Installments
Affordable
Bear in mind that RV or motor
home loans are almost always
secured loans and thus, failure
to repay the loan in a timely
fashion implies the risk of
losing the RV or motor-home
to the lender. To avoid such
thing you need to keep the
loan's monthly installments
at an affordable level. This
is especially important for
those with bad credit that
tend to obtain loans with
less advantageous terms.
Make sure you select an RV
or Motor-home you can afford
so the loan amount is not
too excessive. Also, the loan
repayment programs can be
longer since these loans are
secured. This means that you
can obtain lower monthly payments
by selecting a longer schedule
than the default one.
Obtaining A Low Interest
rate
Getting a low interest rate
on your RV loan is not a difficult
task. Depending on your credit
score it may be even easier.
If you have fair to good credit
score by shopping around for
the right lender you will
easily obtain advantageous
terms. Just do a quick search
for RV lenders on the internet
and contact different lenders
requesting loan quotes to
compare the terms.
If your credit score is less
than fair, if you have delinquencies
on your credit report or even
a bankruptcy, you can obtain
a lower rate by applying with
a co-signer with a good credit
score. When credit assessment
begins, your bad credit score
won't impact the decision
negatively if the co-signer's
credit score is good enough.
That way, the interest rate
determined by the lender will
be significantly lower.
Therefore, If you are planning
to purchase an RV or a motor-home,
you should follow the above
advice and make sure that
you have selected the right
lender and loan prior to completing
your loan application. | 
