Question section 179 deduction

[sheridany]

I was talking to a coach owner the other day and he was telling me a lot of people use the section 179 to purchase an RV and take the deduction against their business. I am curious how many others know about this and use it too. I am sure there are a lot of caveats to doing it.


Section 179

 

[TJ&LadyDi]

IIRC, Section 179 deductions require that the item be used at least 50% for business purposes. And, I do know (don't ask "how" I know) that IRS will require substantial documentation of "business use." I'm sure that there are probably some folks who could meet that standard for a motorhome, but I'd hazard a guess that there won't be many.

Before I went down the Section 179 road with a motorhome, I would be consulting a qualified and knowledgeable tax attorney and/or CPA.

TJ

 

[daria]

Hi there. It is an old post, but hopefully, my answer will help other RVers with the same question.
Here is the answer: Generally (not always), the IRS considers RV a lodging unit. With lodging units, you are not allowed to take Section 179, unless you use your RV on a transient basis.
Basically, "transient" means that you use your RV as a hotel, where your stay is less than 30 days. If you drive around the country ( for business purposes only), you are not staying at one place for longer than 30 days. OR you are renting your RV to other people on short-term basis and never use it personally. In these two cases, you are allowed to take section179. However, even one day of personal use can kick you out of the transient status and that will disallow your Section 179 deduction.
If you can prove to the IRS that your RV is a vehicle, then you can take the whole 179 dedction.
How to prove? it all comes down to how you use your RV and good accounting records.
Source: I am a CPA and an Enrolled Agent

 

[redbaron]

Rent your rv. It's now a business. Document number of days rented vs personal use.

Depreciate the business use portion of the rv.