Thursday, January 6, 2011

RV Interest

Q:  I recall reading somewhere the interest I pay on my coach is tax deductible. I already deduct mortgage interest on our house, do we add this to it? RA, Mississippi

A:  Since you already have a mortgage deduction for interest paid on your principal residence, you may qualify to deduct the interest paid on your coach as a second home. Here the rules are quite complex, depending on the total of all mortgages, if you have refinanced your house, and how you used the proceeds on the refinanced loans over the years. The simple answer for loans taken out after October 13, 1987 is: If the total of all the outstanding mortgages is $100,000 or less, then 100% of your mortgage interest will be deductible.

1 comment:

  1. I work and live in Texas fulltime in a 5th wheel rv as my one and only primary residence on a private lot. I pay about $1500.00 a year in intrest on the loan. Is this interest deductible?