Can You Claim a Camper on Your Taxes? Here’s How

Understanding how the Internal Revenue Service (IRS) views a camper is important for claiming tax benefits. The ability to claim these benefits depends on whether your camper meets specific criteria. This article explains the general conditions and potential deductions associated with camper ownership.

Qualifying a Camper as a Home

For a camper to be considered a “home” for tax purposes, it must meet specific IRS criteria. This classification is a prerequisite for claiming certain tax deductions, such as the home mortgage interest deduction. A camper must contain sleeping, cooking, and toilet facilities.

These three features define a qualified residence, allowing it to be treated similarly to a traditional house or condominium. The presence of these amenities ensures the camper is functionally equipped for living. Without all three, the camper does not qualify as a second home, which limits the types of deductions available.

Deducting Mortgage Interest

If your camper satisfies the IRS definition of a home, you may deduct the interest paid on a loan used to acquire it. This deduction falls under the home mortgage interest deduction, typically claimed on Schedule A (Form 1040), Itemized Deductions. The loan must be secured by the camper itself and be considered either qualified acquisition debt or home equity debt.

Qualified acquisition debt is money borrowed to buy, build, or substantially improve your main home or a second home. The total amount of qualified acquisition debt on which you can deduct interest is limited to $750,000 for loans taken out after December 15, 2017, or $1,000,000 for loans taken out on or before that date. This limit applies to the combined debt on your main home and one other qualified residence, like a camper. Lenders typically report the interest paid on Form 1098.

Other Possible Deductions

Beyond mortgage interest, other deductions might apply to camper ownership under specific circumstances. If you itemize deductions instead of taking the standard deduction, you might deduct state and local sales tax paid on the camper’s purchase. However, the deduction for state and local taxes, including sales, income, and property taxes, is capped at $10,000 per household.

If your camper is used for legitimate business purposes, such as operating a mobile business or providing temporary lodging for employees, certain business expenses could be deductible. These may include depreciation, operating costs like fuel and maintenance, and potentially Section 179 expensing for the vehicle’s cost.

Record Keeping for Tax Claims

Maintaining accurate and organized records is important for supporting any tax claims related to your camper. Retain all purchase agreements, loan documents, and annual interest statements, such as Form 1098 from your lender. These documents verify the acquisition cost and the interest paid on your camper loan.

For any business-related deductions, keep detailed receipts for fuel, maintenance, insurance, and other operating expenses. Records of mileage driven for business purposes are also important. Good record-keeping ensures you have the necessary documentation.