Tips on How To Make Financing Your Boat or RV Tax Deductibleкод для вставки
Tips on How To Make Financing Your Boat or RV Tax Deductible Summer is here and perhaps youвЂ™re wondering whether to buy a boat or an RV for your vacation and if the interest on the loan is tax deductible. There are two options available to those who wish to take part in this taxdeductible financing. The first option, which applies to homeowners, is to finance the purchase using a home-equity loan. According to IRS Publication 936, in most cases, regardless of what the loan proceeds are used for, it is possible to deduct the interest on a home equity loan of up to $100,000. Generally, homeowners are allowed to deduct interest on up to a total debt of $1,000,000 that is used for buying or improving a primary residence and second home. The second option for "cashing" in on this type of deduction is if the boat or RV has sleeping, cooking, and toilet amenities. These options, or basic living conditions, may quite possibly make the boat or RV qualify as a second home, thus, making the interest on the RV or boat loan deductible. One thing to make sure of during the financing stage is that you secure the loan by the boat or RV. To qualify for mortgage interest deductions, the RV or boat must be pledged as security for the loan. "A great number of taxpayers can expand their home mortgage interest deduction by purchasing an RV or boat," says NAEA PR Chair Gerry Voss, EA. "Not only do you get the fun of having an RV or boat, but you also get the mortgage interest deduction too. Taxpayers need to be sure to shop around for the best interest rates and loans terms."