camper interest

[mblatour]

Hi guys,

This question seem ridiculous to ask, but my brain is just not coming up with a definite answer. I did try to look up the info. on the IRS site as well as TTB and on this board. Still not sure.

Client called and said they bought a 5th wheel camper trailer and wanted to know what they needed to bring in order to deduct the interest they paid on the loan. The dealer told them they can deduct the interest as mortgage interest. I always figured that only RV's count for that (outside of regular trailer homes, houses, vacation homes, house boats, etc). But now I am sitting here questioning myself.

Can someone direct me to something that specifically says a 5th wheel is NOT allowed to be deducted as mortgage interest? I told her that I'd have something in writing either way. They have a regular home; this camper is used for recreation purposes only.

Thanks in advance!
~Becky

[David1980]

A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

A 5th wheel sounds like it would qualify to me. It would basically fall into "house trailer" wouldn't it? At any rate, it's certainly similar property that has sleeping, cooking, and toilet facilities.

[Jesse]

............. property that has sleeping, cooking, and toilet facilities.

Agree, for this reason it can be considered a second home. If they already have a home and a cottage, this would be considered a third home and not deductible. But if you want something in black and white check out the rules for what is considered a home.

So once again, may favorite sayin', facts and circumstances.

Home defined pg 4-11 TTB

[MAMalody]

<<< If they already have a home and a cottage, this would be considered a third home and not deductible. >>>

Actually, isn't it, that at this point they would choose which would be their second home. Chronology is not a determinative factor, here.

[Larmil]

<<< If they already have a home and a cottage, this would be considered a third home and not deductible. >>>

Actually, isn't it, that at this point they would choose which would be their second home. Chronology is not a determinative factor, here.

True- you can choose your 'second home' and change the choice from year to year.

[mblatour]

Wow, this is news to me!

I never thought that a regular ol' camper would qualify for a mortgage interest deduction. Half my family and friends have campers (that's what we do during the short summers we have here). I've just never had a situation where someone asked to deduct their regular camper interest. Now motorhomes.... I've used those many times for the deduction.

I feel terrible not having known this previously.

[Larmil]

I never thought that a regular ol' camper would qualify for a mortgage interest deduction. Half my family and friends have campers (that's what we do during the short summers we have here). I've just never had a situation where someone asked to deduct their regular camper interest. Now motorhomes.... I've used those many times for the deduction.

I feel terrible not having known this previously.

Most pop-ups would not qualify. I think the bathroom facilities must be internal.

[Jesse]

<<< If they already have a home and a cottage, this would be considered a third home and not deductible. >>>

Actually, isn't it, that at this point they would choose which would be their second home. Chronology is not a determinative factor, here.

True- you can choose your 'second home' and change the choice from year to year.

True, sorry, I was just trying to make the point that only a 1st and 2nd home would be allowed, so when the dealer told them it was deductible, it was a maybe.

It's like many a car salesperson in Wisconsin - they tell the purchaser bring this sales receipt in with you when you have your taxes prepared because you can deduct it. Well.......you can, but it may not be to your advantage as it is either the sales tax deduction or the income tax deduction and in Wisconsin 9 times out of 10 the income tax deduction is MUCH more.

Until this year of course!