Can I deduct the interest on my RV loan?
Unless you’re paying cash for your RV, you’ll probably take out a loan to finance the purchase. Naturally, you want a low-interest rate and great terms. You should also look into whether you can deduct the interest you pay on that loan.
What the IRS says
According to IRS publication 936, you can deduct home mortgage interest that you pay on any loan secured by a qualified first or second home.
How the IRS defines a “qualified” home
According to the IRS, a home is:
- a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.
Consult your tax preparer
Things get more complicated if you make your RV available to rent or if you try to take the deduction in the same year that you sell it.
You should consult your tax preparer for details on deducting the interest paid on your RV loan.
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