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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 Please look in the description below i've got links to my tax and legal library my Quickbooks training videos how to start a small business 50 60 70 videos some as long as 30 minutes explaining more information on tax and legal strategies that will change your life Also if you'd like to subscribe to my, newsletter or check out, my, social media links please click here their Weekly, free tips and strategies and articles that you'll find extremely helpful and i would appreciate it if you'd subscribe to my Channel i've got so many videos here i produce every week on my, youtube channel And i'd love to give you a ping every time i shoot a. Video thanks so much and keep living the american dream