900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 · 215.563.0276 · Fax: 856.667.3652

Tax Tip of the Week
For the week of
May 26, 2003


Your boat or RV might be your second (tax) home


You may spend so much time in your boat or RV that it feels like a second home. Did you know that the IRS might agree with you? In fact, a boat or recreational vehicle can qualify for some of the tax breaks associated with a second home. Specifically, interest you pay on a loan to purchase a boat or RV could be deductible as mortgage interest.

Normally, mortgage interest is deductible if it is for the purchase of a principal residence and one additional residence. But the IRS defines a dwelling to include a boat, trailer, or mobile home — as long as it contains a kitchen, sleeping space, and toilet facilities. So your boat or RV could qualify as a second home, and you could deduct the interest. There's a cap of $1 million on the total amount of loans that qualify for the home mortgage interest deduction.

Finally, if your boat does qualify as a dwelling and you rent it out, you're eligible for the tax breaks that come with renting out a vacation home. Contact our office if you would like more details.



Prior Tax TipsClick here to view previous tax tips.

"Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information.

The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax-cutting information from time to time, please contact our office. We're here to help.

Home

 
 

untitled

This site designed and maintained by the Information Technology experts at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co.

We appreciate comments concerning our website. Contact our webmaster .