Question

Rental RV - loan payments/interest deductions?

Forum|Forum|2 years ago
December 7, 2023
1 reply
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I bought an new RV in 2022 and used it for personal trips in 2022. I decided to convert it to 100% rental use for all of 2023. I have a loan, so have been making significant payments by re-investing the rental income to try to bring that balance down. Do I just take depreciation on the unit or is there a way I can deduct all the actual payments I made/interest paid?

A

Anonymous_

Employee

You cannot simply deduct the actual payments you made, but you can take depreciation deductions provided you are in the business of renting personal property (e.g., your RV). If the latter is the case, then you would report the income and expenses on Schedule C.

Otherwise, you would enter the rental income on Schedule 1 of your 1040.