Can You Use Your RV or Motorhome as a Tax Deduction?

Owning your very own class B motorhome or recreational vehicle (RV) is a thrilling investment. Many campervan owners are repeat buyers because they understand the dividends that road travel allows, both financially as well as for your overall well being. Travel vehicles provide more comfortable and inexpensive access to some of the country’s greatest attractions and destinations.

When thinking about owning your own motorhome or RV, what comes to mind?

Excitement… adventure… freedom… travel… experience… taxes…

Wait, taxes?

When you go to purchase your travel vehicle, this chariot to adventure and leisure, the last thing on your mind is probably taxes? However, it’s an important consideration to keep in mind to decide if it’s the right move for you.

Review the frequently asked questions below about what owning an RV or motorhome might mean for your next tax return.

Full disclaimer: We aren’t CPAs, we just love talking about vans. We suggest talking to a certified accountant when making any tax decisions in regards to RV and campervan ownership.

Do RVs or motorhomes qualify for tax deductions?

The answer to this question has many different parts to it, so strap in.

The short answer: maybe.

The longer answer:

One of the ways your RV or motorhome may constitute a tax deduction is if you’re requesting a Home Mortgage Interest Deduction. This deduction is the government’s way of helping you reduce your tax burden by giving you a break for your “dwelling” or primary place of residence. Since owning a home typically means paying a mortgage or loan, the homeowner may be paying interest upon that loan.

In certain cases, your motorhome or RV is technically a dwelling. This is true if it’s your primary residence (if you live in your RV full-time) or your second (part-time travel) home.

What constitutes a dwelling or qualified home?

In order to receive the Home Mortgage Interest Deduction, your RV or motorhome needs to constitute a “qualified home.” This generally means your vehicle has a sleeping area, eating space (kitchen), and toilet. Generally speaking, most class As, Bs and Cs will constitute as qualified homes.

In addition, to qualify for this deduction, your debt must be secured. This means that your RV or motorhome loan must be a secure loan. Unless you finance your vehicle through a personal loan, it’s most likely secured.

Talk to a trusted accountant or tax advisor about whether your RV or motorhome qualifies for this tax deduction.

What if I barely use my RV?

You may still qualify for a tax deduction even if you rarely use your RV or motorhome. Again, contact a trusted accountant or tax advisor But if your vehicle has been purchased using a secure loan and qualifies as a dwelling, then you’re typically eligible.

What if I rent out my motorhome for additional income?

You may still qualify for a tax deduction even if you rent your vehicle out for additional income. The general rule of thumb is you must live in your motorhome or RV at least 10% of the year — or 14 days.

What if my RV is for business?

If you use your vehicle for your business, you may qualify for a number of small business tax deductions. Again, speak to a trusted accountant or tax professional.

Is my fifth wheeler, travel trailer or towable pop-up tax deductible?

Unless your fifth wheeler, travel trailer or towable pop-up trailer has a kitchen, toilet, and sleeping area, it likely won’t qualify for the Home Mortgage Interest Deduction. If you use your trailer for business, speak with your accountant as that may be deductible.

Generally, owning a motorhome isn’t a purchase to made specifically for the tax benefits. However, if you’re planning on investing in an RV or motorhome because of the amazing health, travel, and wellness benefits, you might as well look into saving some money!

Searching for your next travel vehicle? Classic Vans is Northern California’s premier dealer of new and used conversion vans and campervans. As a family owned and operated business, we’ve delivered top quality vehicles to our beloved customers for 30+ years. Contact us and let our experts pair you with the travel van of your dreams.

Don’t live locally? Inquire about low-cost nationwide van delivery.