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Last week, Brad from Jacksonville, NC asked about 5th wheeling. <My good friend, Janet Haynes, has this observation to add> Dear TaxMama: Regarding '5th Wheeling', couldn't the motor home be regarded as a second home? My husband also travels all over California and Arizona for extended periods of time and had considered purchasing a motor home for office and lodging. I thought we read somewhere that it would provide great tax benefits as a second home depending on the usage. Hope all is well, Janet Yup Janet, Good call. That's absolutely true. If you don't already have a vacation home you're deducting, the interest expenses on the trailer would be deductible on Schedule A, along with your mortgage interest. But, if he treats it as a vacation home, then Brad doesn't get to depreciate it, or deduct the hook-up and repair costs that would be deductible if he treated it just as a business asset. Oh, and as a business asset, he'd also be able to deduct the interest as a business expense. Many thanks Eva Your TaxMama  |
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