Written by a TurboTax Expert • Reviewed by a TurboTax CPAUpdated for Tax Year 2023 • January 25, 2024 12:10 PM
Important:Summarize article
This should save you ~10 minutes of reading
Important:Article Summary
This should save you ~10 minutes of reading
Important:Summarize article
This should save you ~10 minutes of reading
Important:Article Summary
This should save you ~10 minutes of reading
OVERVIEW
Living at home doesn't necessarily mean you have to be tethered to one place. For federal tax purposes, a boat or a recreational vehicle can be either your main or secondary residence, entitling you to take advantage of the same tax deductions as a homeowner of a typical house.
- A home is broadly defined
- Declaring your main home
- Divided use of your home
Key Takeaways
- The IRS defines a home broadly, including houses, condominiums, cooperatives, mobile homes, RVs, house trailers, and boats.
- The property has to have sleeping, cooking, and toilet facilities to be treated as a primary or secondary residence for tax purposes.
- The IRS allows taxpayers to designate only one residence as a main home at any one time.
- As long as the qualifying boat or RV home is security for the loan used to buy it, you can deduct mortgage interest paid on that loan.
A home is broadly defined
The Internal Revenue Service (IRS) defines a home broadly, allowing the term to encompass:
- Houses
- Condominiums
- Cooperatives
- Mobile Homes
- RVs
- House Trailers
- Boats
The test the IRS applies is simply that the property has to have have all three:
- sleeping
- cooking and
- toilet facilities
If so, it can be treated as a primary or secondary residence for tax purposes.
Declaring your main home
The IRS allows taxpayers to designate one residence only as a main home at any one time. Your main home is the one where you ordinarily live most of the year.
This can be a boat or RV even if it doesn't have a permanent location. As long as it contains the required facilities, you can claim it as your main home on your taxes.
The benefit of treating a boat or RV as your primary residence, is to take allowable homeowner tax deductions that can decrease your overall tax bill. As long as the boat or RV is security for the loan used to buy it, you can deduct mortgage interest paid on that loan.
In the event you decide to move back into a more traditional house, your boat or RV can also be treated as a qualified second home, and the same homeowner deductions apply.
TurboTax Tip:
You can allocate deductions between personal itemized deductions and business deductions if you use your home for both a residence and a business.
Divided use of your home
The only part of your main home that qualifies for homeowner tax deductions is the portion used for residential living. This issue arises, for example, if you use your houseboat to provide business tours, or if you have a dedicated area in your RV that you use as a home office.
To receive full tax benefits, you'll need to divide your home between the part that is your primary residence and the part that is used to generate income. You can then use these portions to allocate the appropriate deductions between personal itemized deductions and business deductions.
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FAQs
As long as it contains the required facilities, you can claim it as your main home on your taxes. The benefit of treating a boat or RV as your primary residence, is to take allowable homeowner tax deductions that can decrease your overall tax bill.
Does the IRS consider an RV a primary residence? ›
In addition to being where you spend most of your time and where you keep your things, to claim your RV as your primary residence, it must be able to be used as a home. In other words, it needs the basics: A place to sleep, a kitchen and appliances for cooking, a bathroom with a toilet and shower, and so on.
Can you write off an RV if you live in it? ›
If I live in an RV full-time, how can I write off loan interest or any rental property I stay at? An RV or motorhome qualifies as a second home if it contains a kitchen, toilet and sleeping area. Available deductions include any interest on an RV loan and property taxes.
Can I deduct a boat on my taxes? ›
Boat used as a second (or primary) home deduction
You can take a mortgage interest deduction if your boat is financed and a home office deduction if you work from your boat. You'll need to do itemized taxes and file IRS Form 1098.
Can you use an RV as a permanent residence? ›
Stationary RV Living
In zoning areas that allow an RV to be parked on private land, an RV can usually be considered a permanent residence. The land address where the RV is parked can be the permanent address.
Can I write off my boat as a second home? ›
For federal tax purposes, a boat or a recreational vehicle can be either your main or secondary residence, entitling you to take advantage of the same tax deductions as a homeowner of a typical house.
How does IRS confirm primary residence? ›
But if you live in more than one home, the IRS determines your primary residence by: Where you spend the most time. Your legal address listed for tax returns, with the USPS, on your driver's license and on your voter registration card.
How to write off RV on taxes? ›
Standard Tax Deduction for the 2023 and 2024 Tax Seasons
Business expenses related to business RV travel and an RV rental business will be listed on a Schedule C and you always want to deduct these. That said, sales tax deductions and RV loan interest write-offs must be listed as itemized deductions.
What is the tax loophole for yachts? ›
Under Section 179 of the Internal Revenue Code, you can take a one-time expense deduction in the year of purchase equal to the purchase price of your yacht up to a maximum deduction of $500,000.
Is a travel trailer considered an asset? ›
When you enter your assets and liabilities in the Online Branch, these values will be used in the budgeting tools to track your overall net worth. Asset Examples: - Motor vehicles – the current Blue Book value of any cars, motorcycles, boats, RVs, etc. you own.
Boat as Transportation
When using your boat for commuting, you can deduct a few different boating expenses including fuel, slip fees, maintenace repairs, insurance, and crew payment.
Is a boat listed property? ›
Listed property is any of the following:
This includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons and goods.
Can you write off a bass boat? ›
Yes, under Section 179 you can claim the boat as a business expense (if used more than 50% for business). You must claim Section 179 deductions for equipment in the tax year that the equipment was "placed in service" - meaning when the boat is ready and available.
How do I establish residency while living in an RV? ›
- determine the state you want to be a resident of.
- Find out the residency requirements for that state.
- Buy property or set up a mailing address (post office box or mail forwarding service)
- Register your RV and get a driver's license in that state.
- Register to vote there.
State laws do not expressly prohibit living in a camper in your backyard. However, the state allows counties and cities to enact laws restricting the use of RVs and campers in their jurisdiction.
How do I get a permanent address while living in an RV? ›
So, How Do You Get Mail if You Live or Travel in an RV?
- Asking family or friends to hold or forward your mail.
- Using USPS.
- Getting a mailbox at a local UPS store.
- Professional RV mail forwarding services, like Escapees RV Club's Mail Service – which can be used by both full-time and part-time RVers.
RV Tax Benefits
- Mortgage interest. You're probably aware of the mortgage interest tax deduction. ...
- Rental business. If you are renting out your RV, you can deduct rental-related expenses. ...
- Business travel. ...
- RV As a Second Home. ...
- Sales tax deduction. ...
- Registration fees. ...
- Business taxes.
If your RV is fixed or attached so you can't just drive away, laws have stated that you can be called a residence or a home. This means you are in a campground hooked up to water, sewer, electric and any others. You are no longer mobile without a bit of time to unhook all the stuff we RVers hook up.
How does the IRS determine residence? ›
You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31). Certain rules exist for determining your residency starting and ending dates.
Is an RV considered an asset? ›
Asset Examples: - Motor vehicles – the current Blue Book value of any cars, motorcycles, boats, RVs, etc. you own. - Real estate – the value of your home, land, a condo, or other property you own even if you have a mortgage.
