Motor Home, Cabin, or Boat Interest?

Many people in Michigan seem to own either a boat of some kind or a motor home. Some may have a cabin “up north.” Those that aren’t fortunate enought to own them outright should remember that the interest on these three items is generally tax deductible on Sch A of the tax return for those that itemize. According to a recent tax court decision, if an owner spends at least 14 days in a motor home, it qualifies as a second home, thus the interest paid on the loan to purchase it is deductible mortage interest. (Dunford, TC Memo 2013-189). Boats are required to have eating, sleeping, and bathroom facilities to qualify for the write off. So although it may be the furthest thing from your mind, think about how you spend your vacation time when you get your tax paperwork together!


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