Wednesday, January 27, 2010

Can RV Fulltimers utilize the Home Buyer Tax Credit?

For all of you fulltime RV ( recreational vehicle ) owners you may want to consider something in the IRS tax code. Read on and I'll explain.

Previously, in an earlier article, I noted that if you actually READ the tax instructions, interest on an RV should be deductable.

I've also been reading that if you have an RV with a motor in it you can deduct the sales tax. I live in Texas so I'm pretty sure I could do that anyway, because Texas has a special sales tax provision already.

However, what I haven't seen much information about is the answer to this question : Is an RV subject to the First Time Home Buyer Tax credit? I think there is also another credit for people who are not first time home buyers, but I'm only going to explain what I've read in the IRS publication 5405 which are the instructions for the tax credit.

I've made a picture of the relevant section, and of course all of YOU have to read and decide for yourself, but if your RV is your main residence (or will be) then I don't see why you can't use this tax credit. If you were already thinking about an RV AND were planning on living in it, then this could be substantial. Really, $8000 is a nice chunk of money - assuming of course you would pay that much in taxes (it is a credit - not a deduction).

rv first time home buyer tax credit
Here is the relevant text. It is the definition of "Main Home".

Leave comments and tell me what you think!

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