SCorp

[LBR]

Can a 5th wheel's loan payment be deducted if it was used for housing while working away from home?

[Corduroy Frog]

More Information

LBR, need more information. You tell us nothing about the S corporation, or who the loan is to or from.

[Jiggers]

And how many nights/days it is used for business. And where is it stored when not used for business. And what name is on the title.

[BHoffman]

Can a 5th wheel's loan payment be deducted if it was used for housing while working away from home?

No, I don't think the loan payment itself is deducted in any event.

If the 5th wheel is also and mostly used for recreation, then I would deduct only the direct expenses like lot rent during business use and otherwise treat it like a vacation home on Sch A if it qualifies.

[Bees Knees]

http://www.thetaxbook.com/updates/TheTaxBook/Updates/2014-08-29_No_Deduction_Allowed_for_Substantial_Business_Use_of_RV.pdf

Generally, no deduction is allowed for the business use of an RV. The above link is a case where the taxpayer used his RV a substantial amount for business. In fact, the court ruled the primary use of the RV was for business. But no deduction was allowed because the RV qualified as a home and there was a small amount of personal use as well.

Bottom line, unless your 5th wheel is ALWAYS 100% used for business and NEVER used for recreation, even if just a small amount, none of the expenses are deductible.

[BHoffman]

Hi Bees - I read that and agree that the RV cannot be deducted as we would treat a home office.

However, what about the related direct expenses like some or all of the lot rent while on work assignment, for example?

[Bees Knees]

Direct expenses that would not fall under the office in home rules could be deductible. For example, T.C. Memo. 2013-189 was another motor home case where office in home expenses were disallowed under the exact same issue. However, the IRS did not disallow the standard mileage rate for use of the motor home to drive to a business location.

Lot rent to me is one of the office in home deductions, because it is a cost of lodging rather than a cost of travel. I guess an exception would be if there was no personal pleasure time being spent at the location where the lot is being rented.

[LBR]

And how many nights/days it is used for business. And where is it stored when not used for business. And what name is on the title.

It is in his name (personal). It is usually parked on his property. He went to Arizona to work for a few months and is staying in the travel trailer.

[LBR]

LBR, need more information. You tell us nothing about the S corporation, or who the loan is to or from.

The loan is is his name.

[LBR]

http://www.thetaxbook.com/updates/Th..._Use_of_RV.pdf

Generally, no deduction is allowed for the business use of an RV. The above link is a case where the taxpayer used his RV a substantial amount for business. In fact, the court ruled the primary use of the RV was for business. But no deduction was allowed because the RV qualified as a home and there was a small amount of personal use as well.

Bottom line, unless your 5th wheel is ALWAYS 100% used for business and NEVER used for recreation, even if just a small amount, none of the expenses are deductible.

He usually works in Truckee, CA and went to Arizona for a few months to work on a few houses.. He is a contractor and works in the construction field. Would that change anything? To me his travel trailer would be in the same category
as if he was renting a motel room while working away from his home.

[Bees Knees]

It doesn't change anything unless he never uses it for personal. Per the court ruling, any personal use disqualifies all deductions for business use.