RE: Is our Pop Up Tax Deductible?

[JemJen24]

 
I ve heard (and read) many opinions on whether or not our pop up would be tax deductible.  It has a kitchen and sleeping quaters, but NO bathroom.  I thought if it didn t have a bathroom, it wouldn t be tax deductible, but then I found this thread on another popup board and a lady posted this:
 
 " Below is what the IRS says in publication 936. By this definition, a trailer with a cot, porta-potti and a hotplate would qualify.
 Qualified Home
 For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities."
 
 So, does this mean, if I simply have a Porta Pottie, that our trailor would be tax deductible?  
 
 Jen
 
 
 

[tlhdoc]

 JemJen24
I think the potty has to be built in, but I am not sure.  I would contact a tax person or the IRS before you claim it as a second home.  I know my Nevada did qualify, but the cassette potty is built in.

[moderator1]

 JemJen24
As tracy said you should contact you tax professional, but from research I have done a porta potti does count.
 
 Many boats that are used for the " second home"  only have porta pottis.

[kathybrj]

 JemJen24
Form 936:
 
 " Qualified Home:
 
 For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or yoursecond home. A home includes a house, condominium, cooperative, mobile home, house  trailer, boat, or similar property that has sleep, cooking, and toilet facilities."
 
 Toilet facilities does not specify built in. ie- Cabin with an outhouse.
 
 You should always consult your tax advisor.
 
 Personally, I did take our interest as a deduction and I am a paid tax preparer. BUT you should consult your preparer. The IRS can, at any time, argue the interpretation of information.
 
 *disclaimer* I am not responsible for anyone siting any info I ve provided and then getting a " friendly"  letter from the IRS. This is for informational purposes only. Again- consult YOUR tax preparer. []

[mike4947]

 JemJen24
Great CYA Kathy.[] The defining word in 936 is " secured" . The loan MUST have either your primary residence or the Trailer as collateral for the loan and stated as such on the loan papers. Personal loans or credit cards purchases are not considered to be " deductable home interest" .
 For those of you in state that charge a personal property tax based on the value of an item this to can be a deductable expense on schedule A.
 As always check with a local tax preparer for any state regulations, specifics to your return, and remember advice from " a person on the internet"  doesn t hold up in tax court or at an audit.

[kathybrj]

 JemJen24
CYA? Do you think I m going somewhere? [&:]
 
 My trailer is the collateral for my loan. Actually, our loan was a " new vehicle loan" , which carried a significantly lower rate than an RV loan. Yes, it certainly does have to state that the item CAN satisfy the loan if the loan is not being paid upon. Many people feel they can not take the interest from their trailers just because the loan doesn t have the word " mortgage"  in it. This is not accurate.
 
 Also, you do NOT have to have a 1098 from your bank, BUT on line 11 of the Schedule A, make sure to put the lender and tax ID# and enter the amount of interest paid. Many people now call their lender s info lines and get the amounts, not waiting for the 1098 or because the institution simply doesn t generate one, for what ever reasons.
 
 As for the original question, it s the interpretation that the IRS looks at. " Toilet facilities"  is the phrase that is being referred to, in the original post, and being questioned. Nothing in that portion of form 936 states that the toilet facilities have to be plumbed in, built in or in any way a permanent fixture.
 
 For me, I have CPAs at my disposal. For all others, consultation with a tax professional is always advised. If you are advised that you meet criteria, by your tax advisor to take the deduction, then by all means, take it.

[Opie431]

 JemJen24
As people I know have a hunting cabin with an outhouse that is tax deductible, the port-a-potti should work.

[The Overmans]

 JemJen24
For the camper to be used as a second home, I was told that it must have a bathroom (or portapotty), kitchen, and shower.  The owner also had to spend x number of nights in the trailer.  I got this information from the salesman and I also looked it up on a IRS internet site that had the tax laws.  I don t remember that site anymore.

[mike4947]

 JemJen24
Over, you find that there s nothing about shower facilities in any of the IRS regulations. Basic cooking, sleeping, toilet facilities are neccesary.
 The really " FUN"  thing about the IRS tax regulations is that they re not all you have to know. There s also over 80 years of tax court decisions that modify or " clarify"  the regulations. One such is that for a boat to qualify not only must it have the above facilities, but that they be " enclosed in a permanent cabin space"  (your party barge won t qualify) and be of a minimum length of 27 feet.
 
 
 Also while you don t need a 1098, you should have the original loan papers available that states the PU is collateral for the loan and the interest rate and period. This and the owners manual have satisfied the IRS on several occasions during audits.

[NCSunshine]

 JemJen24
I work at H&R Block and in most cases it is deductible.  This is from a quickfinder book that I use,
 
 " Second Home:  Rented less than 15 days per year.  Can be a house, co-op, condo, mobile home, house trailer, boat, houseboat or similar property. (Must have SLEEPING, COOKING AND TOILET FACILITIES);  Tax Income: None;  Deductible Expenses: Interest (with limitations), Property Taxes, Casualty Losses;  Gain on Sale:  Reportable as capital gain, NO deferral or exclusion allowed as with a principal residence;  Loss on Sale: None."
 
 With all that said, you can deduct the interest from a loan that uses the camper as collateral.  BUT if you already have a second Home, such as a vacation home, lake home, etc, then you can only claim ONE as the second home.  ALWAYS check with your tax professional because EVERYONE s situation may be different and restrictions could apply.
 
 Hope this helps[]

[GaryWT]

 JemJen24
My bank sent me a 1098 form for my popup so I deducted, no questions asked.  as far as staying in it so many nights, I believe that is for those who rent out there vacation and we know none of use rent out our popups.

[NCSunshine]

 GaryWT

My bank sent me a 1098 form for my popup so I deducted, no questions asked. as far as staying in it so many nights, I believe that is for those who rent out there vacation and we know none of use rent out our popups.

 Yes the nights stayed in it are related to renting a second home.  Also it s true that they will send you a 1098 for the interest.  But lets assume that you also have a boat that qualifies too.  Even though you would get a 1098 for both (also assuming you have a first home mortgage), then you would only be able to use one (the camper or boat) for the second home interest deduction.
 
 That is why it is best to talk to your tax professional about it.  To many if s, and s or but s []