This past week, I was off-grid camping in the boondocks. No internet. No phone. Had an entire week of peace in the forest, and complete relaxation. Even sweeter was knowing that I could deduct part of the cost of the trip on my taxes!
The IRS states, “A home mortgage is any loan which is secured by your main home or a second home. It includes first and second mortgages, home equity loans, and refinanced mortgages”.
They further define “home” as a house, a condominium, cooperative, mobile home, boat or similar accommodations that have a sleeping space, a toilet, and cooking facilities.
Most RVs today come with a bath area, a kitchen area with a refrigerator and stove, and a bed. In fact, some can be downright luxurious! If you are not already deducting interest on a second home, an RV may be that second home. It doesn’t matter if you tow it or if it is self-powered.
Check with your tax advisor or online if you think you may be able to qualify for this deduction. Also, don’t forget to ask about the property taxes you pay for that RV, as they could also be deductible. Any deductions you take on a “normal” second home would apply the same to your RV.
Aside from the tax benefits of RV ownership, camping in general is one of the most cost-effective vacations there is.
I could travel to Hawaii or Cabo San Lucas with a family and easily spend $3000 to $5000 or more in airplane tickets, hotel rooms, restaurants, tours, and souvenirs. Camping might cost me $250 for a week, and some gas to get there. Furthermore, I feel just as relaxed as I would have on more costly vacations. In fact, I feel more relaxed because I don’t wait in long crowded lines at the airport to get strip searched or my tooth fillings inspected by the TSA!
For cost effective getaways, there is no better way than camping!