When your RV is your home, it is important to have a tax plan. For those of us who want the savings that come from running a business out of their RV home, I have some home business tax tips for those enjoying full time RV living.
The Best Way to Write Off an RV and Some Home Business Tax Tips!
For those of you that are not workampers or are not currently using your RV for a business purpose, is there a way for you to get some tax advantages while traveling in your RV? If it is your primary home then perhaps you can write off some of the interest on that RV loan, if you have one. Otherwise, the only way to really get the best possible deductions for your RV is for it to have a business purpose. Then we can really put the home business tax tips plan into action!
But What if I am a Part Time RVer?
You may be the folks who have a home base and may travel from that location in the winter time when it is cold to a location that is more suited to your liking. This home base could be a house or a condominium that you own, and the RV is either parked there or stored nearby.
From there, you have the ability to hop in the RV and travel when you want. If this is for business purposes then there are a number of ways to write off that RV and the associated travel!
Are you Engaged in Full Time RV Living?
This would be someone who does not have a home base, you live full time in your RV as it is your home, and you are out on the open road enjoying locations that you live and may work at. In other words, the RV is your primary residence.
Okay, for the part-time RVer you have a much greater choice of options when it comes to your home base tax deductions. When you travel, as long as you are going with a business intent, the costs of the RV can be used as a deduction. You don’t have to be operating an LLC or an S Corporation to take advantage of these deductions. All you need is a business purpose. If you don’t have a small business, look elsewhere on our website. We have some great ideas for you!
If you do set up a business, or have one of these corporate structures already in place, then there may be even more ways to maximize the benefits of traveling in your RV to locations where you operate your business. Let me say again that if you do not have a small business you need to seriously consider starting one! If you are looking to maximize your tax benefits there is no better way for this type of lifestyle!
Would you like to know how to fix eighty percent of the problems that will occur in your RV? Do you like to help people? Would you like to be an RV inspector?
For the full time RVer unfortunately you do not have as many deductions as the part-time RVer, but you also don’t have all the costs associated with owning and maintaining that home base. So, who is making out better on the deal? It is hard to say! Each situation is different.
But if you are, or plan to start enjoying full time RV living then you still do have some great ways to maximize your tax deductions if you operate a small business from that full time RV home! The main way you can accomplish this is to write off mileage while going from place to place where you operate your business.
So if you want to travel south in the winter, find business in the area you will be staying and enjoy that tax benefit. As you move about the country, keep track of your mileage. That way you will be able to take advantage of the travel you enjoyed.
The other nice deduction you can use is the home office deduction. As long as that area of the RV is specifically for the purpose of operating your business, then that tax deduction should apply. Please consult your tax professional on this as each situation is different as are the RV floor plans that would benefit from this type of deduction.
Hot Home Business Tax Tips!
I’ll share three hot deductions that you can benefit from when operating your small business out of your full time RV living home.
First, take advantage of the dining out option if you enjoy doing that. Pam and I are always surprised at the number of folks who eat out all the time, even though they have great cooking facilities in their RV. But they are not taking advantage of this deduction!
- So if you are going to eat out be sure to talk about business with someone. You can write off fifty percent of that meal! Share your business with someone at the restaurant and pick up a new client!
- If you are dining by yourself but had to travel more than fifty miles away from where your RV is located, you can also deduct fifty percent of that meal.
- If you have an employee or two and have an event for them, that is one hundred percent deductible.
Second, be sure to plan any RV travel you are engaging in around your small business activities and opportunities. This item may qualify for a one hundred percent deduction on your taxes.
Third, you can benefit from your small business when it comes to health insurance. There are a lot of ways to go with this, and I am not an expert, but depending on your corporate structure, you can use your business to set up health care plans that work best for you, and cover the costs much better than if you secured this coverage without the corporate veil.
If you like Mark’s information you can learn more by going to his website and checking out all the great videos he has. Pam and I joined his ongoing CFO in a Box series. We need to keep up with how we can maximize our deductions from the business we run from our RV. And because this information changes from year to year it is nice to have Mark as a source so we can keep on top of the best ways to take advantage of those tax savings.
I have outlined a lot of broad strokes here when it comes to home business tax tips! This information plus the videos shared here should give you some great ideas to maximize your part or full time RV living! Do seek out professional consultation as each individual person has a unique tax situation when it comes to these issues.
We would be happy to steer you in the right direction if you want to reach out to us. You can leave a comment below or fill out the request for information area on the side bar.
I hope you found some useful information here that helps you as you travel this great country in your RV!
Howard and Pam
Hello Howard and Pam,
Thank you for all the great information. I am a photo editor and photographer who is thinking of living and doing a business full-time in and RV. It would be for my wife, Betsi and I ( and our Puggle).
Please send me information on setting up a business from an RV. Anything on deductions, write offs and other tax information. Would you recommend and LLC? And which is the best state to set one up?
RV and BV
Thanks for stopping by our website!
For more info on starting a business, you can hop over to rvinspector.org. I have a lot of info on business entities and resources on starting a business.
Check that out and let me know if that answers your questions. Also, workamper.com has a lot of resources that you will find are useful.