Tax Deductions for RV Owners

Not in Canada. A wonderful country but no tax deductions for owners of RVs.

It looks as though the laws might be changing in the United States causing a bit of a stir for RV dealers and customers alike.

This came in my Reuters feed:

Recreational vehicle retailers from across the country were sipping morning coffee at a convention in Las Vegas earlier this month when word whipped through the hotel’s “dealers’ lounge” that the U.S. Congress was considering tax law changes threatening their businesses.

Republicans in the House of Representatives wanted to jettison a part of the tax code that lets dealers of RVs, cars, boats, even farm and construction machinery, write off all the interest expense of keeping inventories of vehicles on their sales lots.

The RV dealers jumped on the phones to their representatives in Washington, adding to a wave of calls made by members of the powerful National Automobile Dealers Association (NADA) as well as lobbyists for boat dealers and farm machinery dealers.

And then I came across this news item on CNBC:

If a provision in the House-passed tax bill makes it into the final legislation, owners of boats and recreational vehicles who write off the interest on their loans would lose that deduction.

The Tax Cuts and Jobs Act approved by the House last week eliminates the deductibility of mortgage interest on second homes. For RVs and boats that qualify as such — those with a kitchen, bathroom and at least one bunk — owners currently can deduct the interest they pay on financing those assets.

It came as a bit of a surprise to me that my neighbours to the south can write off the interest on their RV loans. At least for now.

Sales in the RV industry are white hot so I’m not sure how much of a dampening effect this might have on the industry. From the RV Industry Association:

The recreation vehicle (RV) industry’s shipments will reach 472,200 units in 2017, the highest annual total since the data has been collected, and a 9.6% increase from the number shipped last calendar year, announced Frank Hugelmeyer, President of the Recreation Vehicle Industry Association (RVIA).

According to a new forecast presented today by Hugelmeyer at RVIA’s Committee Week luncheon, RV shipments are expected to reach even greater heights in 2018, with wholesale production projected at 487,200 units.

Let’s hope that there will still be some sites available when all of these RVs go looking for a place to camp.

The Tillmans

This is another couple that I follow on YouTube, the Tillman’s. They have a channel called This Little Adventure.

They are a family of four living out of a renovated 1999 Damon Intruder. Toni and Karlton run a photography business out of their coach — their website is here — and they clearly have a great eye for design.

The interior of this 18-year old coach looks amazing!

They cut a promo video of their coach which you can see here:

And, if you want an extended tour of their coach with Toni and Karlton as your hosts, you can watch it here:

Trent, Siobhan, 5 Kids in a Foretravel

I follow Trent and Siobhan’s website and YouTube channel.

I admire them. I’m not sure how they live full-time in a coach with five kids and still maintain their sanity.

They travel in a 22-year old Foretravel.

Foretravel makes a beautiful coach. Like this ih-45:

New, these coaches sell for about $1.4 million USD. Give or take a few dollars.

Trent recently posted a video about their coach basically asking how well a 22-year luxury coach holds up. An interesting take on how their family lives full-time in an old coach.

Pre-Owned Prevost Or Class A

I really enjoy Andy’s videos. And his website, The Gadget Guru.

He did a segment on why someone should consider a used Prevost over a new Class A. Some interesting observations on the differences in engineering philosophy.

Of course, highlighting the 2 million mile design specification of a Prevost bus is a testament to the lifespan of the brand. Although I do see many older Class A motorhomes still on the road even after 15 or 20 years.

But I have not come across any specifics comparing the lifespan of a Prevost vs a quality Class A coach. Nor have I come across any specifics on the total cost of ownership over the long-term, say 20 years of ownership.

My suspicion is that the Class A coaches would not hold up as well in terms of depreciation over time. Whether the cost of operating the coach including depreciation equals out over time between the two is really a guess.

Interesting discussion though. We have given some thought as to whether we will continue in a Class A coach or trade for a used Prevost sometime in the future.

Rock Safaris

Rock Safaris. They take care of getting you there.

If you are a musician and your label is not quite ready to provide you with your own bus, well, you can rent a 9-12 bunk Prevost Entertainer Coach from Rock Safaris.

A Prevost Entertainer Coach?

Yes indeed.

From the Prevost Entertainer Coach website:

The Prevost X3-45 VIP Entertainer is designed to suit the demanding and rigorous needs of traveling entertainers and their crews. The unmatched Prevost ride comfort is the pinnacle attribute, providing headliner acts with unparalleled stability for sound sleep and serene lounging while on the move.

Rates are between $375 and $1,110 USD per day. Driver rates are around $250 per day. Add in fuel, 13 cents per mile surcharge and you have maybe $10,000 – 15,000 per week to run a band in a sleeper coach.

What got me here?

This fellow’s YouTube video on what life is like on the road as a touring musician (and yes, he does travel in an Entertainer Coach).