Does the IRS Let You Claim an RV as Your Primary Residence?

RV Life

Whether your dream is to full-time RV or you are permanently parking your RV in a backyard, at some point you might wonder if the Internal Revenue Service will let you claim an RV as your primary residence. Generally speaking, an RV can be considered a primary residence by the IRS for income tax purposes, so long as it meets certain criteria.

Let’s review that criteria, and also how your RV can be your primary residence for income tax purposes. But be warned, we are not tax professionals so for the best information, always consult with a professional tax preparation expert about your particular situation.

How to Claim an RV as Your Primary Residence

Do you live in your RV for most of the year? Then you can probably consider your RV a primary residence. For the IRS to consider a vehicle as a primary residence, the RV must have:

A sleeping area
A toilet
Cooking facilities

Your RV doesn’t need to stay in the same location to be considered a primary residence. So long as it contains the required facilities and you spend most days of the year living inside of it, you can declare an RV as your primary home.

Keep in mind, that you can only declare one physical structure as a primary residence. And also remember that a residence is not the same thing as a domicile.

A domicile is the state in which we choose to file paperwork for bureaucratic necessities, like vehicle registration, voter registration, driver’s license permits, and tax filings.

Why Claim Your RV as a Primary Residence?

When you declare your RV as your permanent residence, it entitles you to the same homeowner’s tax deductions to reduce your overall tax bill. If you took out a loan to buy your RV, you can deduct the interest on the loan so long as the RV is used as collateral for the loan. That is, if you don’t repay the loan on the RV as stipulated in your loan agreement, the lender can repossess your RV.

Some other tax deductions you might be eligible if your RV is considered your primary residence:

Divided use of home: If you run a business from your RV, expenses for the portion of the RV used exclusively for your work are a deductible expense, but aren’t included in the homeowner’s deductions. Some business deductions that might be included are:
- Utilities
- Repairs and maintenance
- Home depreciation
- Deductible mortgage interest
Improvements to help with medical care

You Can’t Deduct:

Homeowners association dues
Home insurance
RV appraisal fees
Depreciation
The cost of improvements to your home, except in the relatively rare case where they qualify as a medical expense. (But keep those receipts. They may help reduce your taxes when you sell your home.)

What Happens if You Move Back Into a Traditional Home?

If you move back into a traditional house, your RV can still be treated as a qualified second home, and the same homeowner deductions will apply.

The Pros Know

The best way to prepare your taxes is to have a certified public accountant or tax professional prepare them for you so there won’t be any errors that will get you into trouble with the IRS. Changes to tax laws might impact whether you qualify for some deductions. It’s always best to work with a professional who is up to speed with the latest tax laws.