How Can You Write Off an RV on Taxes?
An RV can offer tax advantages, but eligibility depends on its specific use and strict IRS rules. Understand the requirements to support your deduction.
Claiming a tax deduction for a recreational vehicle is a common question that depends entirely on how the vehicle is used. The Internal Revenue Service (IRS) permits write-offs only under specific circumstances, such as for personal accommodation, business activities, or other qualified purposes. Simply owning an RV does not automatically create a deduction. The burden of proof is on the taxpayer to demonstrate that their use of the vehicle meets all established IRS guidelines.
Qualifying Your RV as a Home for Tax Deductions
One of the most common ways to secure a tax deduction is by qualifying the RV as a second home. The IRS allows taxpayers to deduct mortgage interest on a primary residence and one other residence. For an RV to be considered a home, it must contain sleeping, cooking, and toilet facilities. Most modern RVs and motorhomes are designed with these amenities.
To claim the deduction, the loan must be secured by the RV, meaning the vehicle serves as collateral as specified in the loan agreement. An unsecured personal loan used to buy the RV will not qualify. Your lender provides Form 1098, Mortgage Interest Statement, at the end of the year, which reports the total interest you paid.
The deduction is limited to the interest on up to $750,000 of qualified residence loans, or $375,000 if married filing separately. This cap applies to the combined total of all mortgage debt on a primary and second home. If your total loans exceed this amount, the interest on the debt above the limit is not deductible.
State and local property taxes paid on the RV, often included in annual registration fees, may also be deductible. However, the total deduction for all state and local taxes (SALT), including property, income, and sales taxes, is capped at $10,000 per household annually. This limit can reduce the benefit for those who already pay high state taxes.
Deducting Business Use of an RV
If an RV is used for a business, a portion of its costs may be deductible. This requires the owner to operate a business and use the RV in that capacity, such as traveling to different work sites, meeting clients, or using it as a mobile office. The use must be for business, and personal use must be carefully tracked and separated. The IRS requires that the RV be used for business more than 50% of the time to qualify for certain accelerated depreciation methods.
Taxpayers have two methods for deducting vehicle expenses: the actual expense method or the standard mileage rate. For a large asset like an RV, the actual expense method is often more advantageous. This method allows for the deduction of a percentage of all costs associated with operating the vehicle, based on the ratio of business miles to total miles driven. Deductible expenses include:
- Fuel
- Insurance
- Repairs and maintenance
- Loan interest
- Campground fees for business-related stays
Depreciation is a major part of the actual expense method. For 2025, bonus depreciation allows for an immediate deduction of 40% of the cost, decreasing to 20% in 2026. Separately, Section 179 for tax year 2025 allows a business to deduct up to $1,250,000 of the cost of qualifying equipment. This deduction begins to phase out for businesses that spend more than $3,130,000 on equipment in a year.
Alternatively, the standard mileage rate offers a simplified deduction. The IRS sets a rate per business mile driven, which is meant to cover operating costs like fuel, maintenance, and depreciation. While simpler to calculate, this method typically results in a smaller deduction for an RV compared to tracking actual expenses. Choosing a method is an important decision, as switching between them can be restricted in subsequent years.
Other Potential RV Tax Deductions
Other deduction opportunities exist, such as for state and local sales tax. Taxpayers can choose to deduct state and local sales taxes instead of income taxes. This choice can be beneficial in the year a significant purchase like an RV is made, as the sales tax can be substantial. This deduction is subject to the $10,000 annual SALT cap.
Donating an RV to a qualified charity can create a tax deduction. The amount depends on how the charity uses the vehicle. If the charity sells the RV, the deduction is limited to the sale price, reported on Form 1098-C. If the charity uses the RV for its mission or makes improvements before selling, you may claim its fair market value.
In some situations, using an RV for medical travel may allow for a deduction for lodging, capped at $50 per night per person. This applies only when travel is for receiving medical care from a licensed physician. These costs are only deductible once total medical expenses exceed 7.5% of your adjusted gross income (AGI).
Required Documentation and Record Keeping
Supporting any RV-related tax deduction requires meticulous documentation, as the IRS can disallow unsubstantiated claims. For each type of deduction, specific records are necessary.
When claiming the RV as a second home, you must have the loan agreement showing the vehicle as collateral and the year-end Form 1098 from your lender. Keep receipts for any property taxes paid.
Business use demands the most rigorous record-keeping, centered on a contemporaneous mileage log. This log must detail the date, mileage, and business purpose of each trip. You must also save all receipts for actual expenses claimed, such as fuel, repairs, and insurance.
For other deductions, the purchase agreement is needed to prove sales tax paid. For a charitable donation, you must have a written acknowledgment from the charity and, if the RV’s value is over $500, Form 1098-C.