Can an RV loan be considered a second mortgage?
Bullwinkle asked:
Can an RV loan be considered a second mortgage and thereby use the interest paid on the loan as a federal income tax deduction?
Jean
Can an RV loan be considered a second mortgage and thereby use the interest paid on the loan as a federal income tax deduction?
Jean
Tags: Mortgage Loan, Rv Loan, Second Mortgage
July 29th, 2009 at 1:23 pm
Timothy
You should get a second mortgage on your house to buy the RV and it will definitely be tax deductable.
July 31st, 2009 at 6:23 pm
Scott
No. But a home equity loan will.
August 2nd, 2009 at 9:05 pm
Karen
To answer your question in a word-no
I would also suggest not going for a second mortgage either. Getting a second doesn’t look good on your credit-your score would probably go down.
You might think about refinancing,as long as the intrest rate does not go up. Then you refi the first, get enough extra to pay off the RV, and you still only have one mortgage.
Just make sure you don’t end up paying more in the long run than you would be saving on the deduction.
August 4th, 2009 at 9:10 pm
Melinda
No, because it is not realestate.
August 5th, 2009 at 5:02 am
Ella
A ’second mortgage’ is a loan against your home that uses your home as collateral (based on the available equity you have in the property).
You can take a second mortgage (AKA equity credit line or Home Equity loan) to pay for something like an RV or a Boat, and yes, that interest is deductible on your federal income taxes.
You can also take a mortgage against the RV, and not include your home as collateral for it (just as you could buy a second home) IF your debt to income ratio will allow it. In this case, it is also deductible.
I think you are allowed to deduct two mortgages on your income taxes, so if you have a mortgage, a HELOC and then want to take out another mortgage on the RV then it might not be deductible. Check with your tax preparer to be sure.