Hi, mark kohler here and i want to talk tax and legal strategies for rv, owners now this is coming from a fellow rv
Owner yes i want two winnebago mini now, don't let, the name confuse you it is a 27-foot
Rv i pull behind, my yukon it's pretty cool, and i'm pretty excited
Now i'm also a cpa attorney and small business, owner and i've got some tips for you if you, own an rv
And we're gonna break down pros and cons. You're, gonna love it
Now first the bad news under the new?
Tax cuts and jobs act you cannot write off the rv as a second home any
Longer and that meant the interest on the loan to buy an rv
Was typically, going to be the second mortgage scenario second home write-off
No, longer in 2018 until 2025 and the law
Changes, also you cannot use the heloc or a. Home equity line to buy an rv
And think you can, write off the mortgage interest
Now under the tax cuts and jobs act you can only write off the interest on your acquisition indebtedness for your primary residence
I've got other videos on the tax cuts and jobs act
Watch them learn it but that's the bad news i've still got some good news
Now the main place you can write off an rv is as a business, owner now if you're not a business
Owner don't give up yet don't turn the video off i've got a couple other golden nuggets here but that's, where we're
gonna
Be able to write this off not as a second home or the interest on a second home or a
Second mortgage to write off the interest, we got to think small
Business so let's look at the pros and cons of full-time or part-time ownership and having that rv
Be part of your business maybe to get you to your rental properties to check on them to go to
Conferences to go to shows to go to conventions
Maybe to go work on a rehab property go pick up supplies that rv becomes a unit to drive around to go to your next
Client your next meeting something, like that where you're, gonna travel, some distances the rv
Becomes a business vehicle that's the concept that we're. Gonna play with here
Now, again, full-time part-time, yes there's people out there that live full-time rv, now the full time rv, years get really two
Major benefits one they can choose their domicile what that means is they can
Say, hey i don't want to pay california taxes anymore i'm going to become a resident of nevada with, my rv or south
Dakota or another state that could work out, well texas or florida
Think, east coast west coasters there are some states out there that, don't charge state tax think washington now
When you move out of your primary residence and you don't own a home anymore and you're in this rv
Full-time you can set up address services and become domiciled in another state where your retirement income and your business income any
Income is not going to be subject, to state tax if we work a write a lot of details there but that's benefit number one?
number two
Is that this state tax savings is going to add to the fact that you're driving around to do business and you're
Gonna, be able to write off the mileage as you drive for business purposes so if i'm
Up over in arizona doing
Some business and then i've got to go to an rv inspection or travel over to texas to go to a convention that
Mileage to get there is going to be a tax write-off but the con, is that i cannot write off the rv as a
Whole i can't depreciate it i cannot take actual
Expenses that's not gonna work and it's gonna be a, major con, and
i
Have to think about maybe even home office there's a court, case, that's not favorable
Where some yahoo tried to ride off part of his rv as a
Home office when he was a full-time rver, you're in such close quarters as a primary residence and that's what you're arguing
Your rv. Is here your home office is not even going to be a write-off typically with an rv
Because it's just, gonna be tough to carve out an exclusive area in your rv for business
Now, again hitting highlights here part timers here's, where the rv gets to be a, major pro because now the the
Rv is a business vehicle and you're
gonna
say
Some percentage of it is going to be for business use and that means if i use it 80 percent for business and 20%
For personal i can write up 80 percent
The fuel repairs, maintenance the that interest on the loan to acquire the rv
That becomes a write-off and the big thing is i can, depreciate that rv
so i could
write off the rv if it was a hundred percent business you sure i could write it off all and
One shot can you believe that in any given year that's a, new benefit to with the 179 deductions of the tax cuts
And jobs act where the government taketh, away
They, also give some benefits you got to find a spot that's best for you so as a part time
Rv, owner that rv becomes a really great way to deduct the rv
And you're not stuck with mileage you're actually writing off the rv, now the con
Is that were still taking care of our primary residence you, may be paying property tax you're
Still maybe under a big mortgage and you, want to downsize and you just can't talk your spouse into living in an rv
Full-time so you still got the primary residence and that's gonna be a
Also, problem for state taxes because you, may not be able to move domicile so you get to write off the rv
But i'm still stuck in my state to pay taxes
Over here i get to move my domicile and save on state taxes and write-off
My mileage but i don't get to write off the rv. And the home office disappears so again
There's pros and cons, and what you, want to find out? Is where's the rv?
Fit best for you and your lifestyle i think rv
Ownership is awesome i think it's fun is fantastic and there can, be some tax perks if you
Structure it properly so keep studying
Don't give up and i've got plenty of other videos to help you learn the details of this and help you expand your business to
Better live your american dream
Thanks so much for watching and if you found that helpful
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