Thursday, March 21, 2013

Deducting Mortgage Interest on your RV

Q.  My husband and I are retired military and currently live full time in our RV. Although we do have a small cabin in another state, there is no mortgage on it. I am taking the mortgage interest on the RV as a deduction on our tax return. Is this correct? What is the impact if we take the standard deduction?

A.  Yes, since your RV is your primary residence you can deduct the mortgage interest. The mortgage interest would be deductible even if the RV was a secondary residence, providing, of course, it meets all the criteria.  If you elect to take the standard deduction, there would be no impact as you don't account for how it is "spent" so to speak. Always take the higher of the two.

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