But chances are, if your RV isn’t custom-made and pretty strange at that, you’re in the clear. There is, of course, the…, Article by Emily Schneider. We don’t know what the standard deduction will be in 2020 yet, but the rules above still apply. It’s easy to get sucked into debt when you’re shelling out interest for an asset that’s losing value by the minute. However, if you buy a vehicle in one of those states, you will likely have to pay for the sales tax in the state where it’s registered. RV taxes and their laws and deductions can vary by state and circumstance, and we wouldn’t want to steer you in the wrong direction! Sales tax tacked on to a purchase like a T-shirt, or a good novel to read on your travels, or a trinket you pick up along the way, can be pretty small. Emily is a freelance writer and 5th wheel owner in Richmond, Ky. Four of the states mentioned above – Alaska, Delaware, New Hampshire, and Oregon – don’t let you register your vehicle there if you don’t live in that state. Along with the above benefits, your RV might also be eligible for a motorhome sales tax deduction, along with the sales tax assessed on other major purchases like cars, aircrafts, boats, or building materials for major home improvements. You’ll meet new people who will be excited and grateful for the experience of using your RV to make their own memories. Many of them have been working to close that loophole, and several states including California, Iowa, Massachusetts, Minnesota, Nebraska, and Wyoming are careful to enforce sales tax on any vehicle that was purchased in another state and brought to theirs within a certain time frame. Let’s take a closer look. Here’s the official legal mumbo-jumbo: “For you to take a home mortgage interest deduction, your debt must be secured by a qualified Keep in mind, however, that the interest is only deductible if you take out a secured loan on your RV — one that’s explicitly tied to the asset (in this case, your RV) and which allows the lending bank to repossess the rig if you default. If you've just purchased a trailer, you need to title and register it by following the same procedures as regular car registration. Sales tax is a combination of your local and state sales tax rates. Registration for 3 years: $22.50. Montana, … These laws are a little bit more convoluted, so we’d recommend checking with your accountant about whether or not you can document your RV as a business item in your paperwork, and if so, how to do it. Montana, however, has a loophole when it comes to no sales tax on RVs. And not being deductible makes those loans into an even bigger headache, especially when you factor in depreciation. 3. As you can see, there are a wide variety of RV tax deductions that can make owning one a boon at tax time. With all tax issues, it’s crucial that RV owners find good legal counsel to help them make the right decision. Check out their YouTube…, © Copyright 2020 RVshare.com Privacy and Terms, Where To Purchase an RV: Look Before You Leap, Homeschooling from the Road: An update after three months of full-time living, Top 12 Places To See In Hawaii In Your RV, 5 Tips for Choosing a Campground During COVID. And so they carefully choose the state of residence based on taxes … Taxes definitely qualify as one of the least-fun things to think about in the world. You have to learn how to properly…. RV Tax … … Be sure to also check with them for filing deadlines – updated tax date is July 15, 2020. Keep in mind, however, that if you purchased your RV in one of the five states that don’t assess sales tax, you wouldn’t qualify. According to Roberg Tax Solutions, over 50% of the nights you spent on board would have to be for business purposes, and you wouldn’t be able to stay in the rig for more than 30 days at a time, so as to ensure it still qualifies as a transient residence. You have to learn how to properly…, You’ve been dreaming of a new adventure. Add in registration fees, and your overall price on your RV could be a lot more than you thought by looking at the sticker. Florida … A life on the road outside of bricks and mortar, so you’ve made…, Last year, our family of six hit the road for the adventure of a lifetime. In the year 2019, the standard deduction is $12,200 for single filers and $24,400 for married couples. So, are there ways to bring that price down? 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