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 Post subject: Taxes and fulltiming
PostPosted: Sat Jul 15, 2017 6:03 pm 
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Joined: Mon Mar 16, 2015 6:46 pm
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Location: Chesapeake, VA
OR Year: 2015
OR Model: 376FBH
Member ID: ORF-6549
For those that are fulltiming, if you don't still own a home, how do you keep from paying out a bunch of taxes at the end of the year since you can't use your home as a deduction. We are thinking of renting our house instead of selling it for this reason. However, we don't really want to rent, we would rather sell but are afraid we will have to pay out a butt load of taxes at the end of the year because we wouldn't have any deductions?

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2015 Mesa Ridge 376FBH
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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jul 15, 2017 7:53 pm 
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Joined: Thu Apr 07, 2016 10:36 pm
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Location: Mt. Vernon, Indiana
OR Year: 2016
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I don't know the exact answer to your question about deductions. I'm not sure there is an answer that will makeup for your loss of deductions. But full time renting isn't the answer for keeping your complete deduction either. If you use the home as a residence and rent it for 15 days or more you have to report the rental income. You can deduct your interest and taxes. You can deduct other rental expenses, including depreciation. However, you can only deduct up to the amount of the income minus the deductions for interest and taxes. Carry over any rental expenses not deductible under this rule to the next year. Then, they'll again be subject to a limit.

BUT I do know that the interest paid on your TT can be deducted as a second home if you use the TT for 14 days or more and don't rent for over 15 days.


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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jul 15, 2017 8:23 pm 
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Joined: Fri Feb 13, 2015 7:40 am
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Location: Central OH and Beyond
OR Year: 2015
OR Model: 319 RLS
Member ID: ORF-6362
That is a question for an accountant (which I am not), but I always ask the question what does it matter if you pay the money to get the deductions or pay the tax. It is money gone either way.

It is my understanding of the current capital gains laws that if you have been living in your home (for one or two years) you will not pay taxes on the cap gains, however if you rent it then sell it without living in it you will have cap gains.

I am sure a full timer will jump in soon with all the answers :-)

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Wayne & Delores
Retired Plumbing & HVAC Contractor
2015 319RLS
2017 RAM 2500 Laramie, 4X4 Crewcab, 6.7 Diesel, Short Bed W/5th Wheel Bed Prep Package
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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jul 15, 2017 9:16 pm 
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Joined: Tue Oct 01, 2013 2:07 pm
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Location: Nazareth, PA
OR Year: 2014
OR Model: 427BHS
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State tax laws all vary. Best to contact a CPA in the state of residence and pay them their fee to figure it out for you.

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Mark
2014 Open Range 427BHS
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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jul 15, 2017 9:57 pm 
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Joined: Thu Feb 09, 2012 7:50 pm
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Location: Full Time RVer from Anthem, AZ
OR Year: 2012
OR Model: 391RES
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If your income is still high, choose a State to live in that does not charge State Income Tax (Texas, Washington, New Hampshire, Etc (7)). Investments are the only other thing I know of. Certain investments create income that is not taxable. If you are making payments on our RV, you can deduct it like a house as long has it has a "Bed, head and galley). Most of the investments you could make should have been established years ago. (Heavy contribution in Roth IRA's etc). Good luck!

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 Post subject: Re: Taxes and fulltiming
PostPosted: Sun Jul 16, 2017 7:28 pm 
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Joined: Mon Mar 16, 2015 6:46 pm
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Location: Chesapeake, VA
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Thanks for all the advice.

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Jordan & Jennifer
2015 Mesa Ridge 376FBH
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 Post subject: Re: Taxes and fulltiming
PostPosted: Sun Jul 16, 2017 8:46 pm 
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OR Year: 2014
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I think you can get partial capital gains break if you live in the home 2 of 5 years before you sell it. But the depreciation tax break does come back to bite you when you do sell it.

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 Post subject: Re: Taxes and fulltiming
PostPosted: Mon Jul 17, 2017 11:52 am 
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Location: Chesapeake, VA
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dottiedewey wrote:
If your income is still high, choose a State to live in that does not charge State Income Tax (Texas, Washington, New Hampshire, Etc (7)). Investments are the only other thing I know of. Certain investments create income that is not taxable. If you are making payments on our RV, you can deduct it like a house as long has it has a "Bed, head and galley). Most of the investments you could make should have been established years ago. (Heavy contribution in Roth IRA's etc). Good luck!


Although I am stationed in Virginia, I am a Texas resident so I don't pay State Income Tax. This may help some. I have the military version of a Roth IRA so I'm not sure how that will play into things. We may just bite the bullet and pay whatever taxes we owe at the end of the year. I really don't want a rental property!!

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Jordan & Jennifer
2015 Mesa Ridge 376FBH
2017 F350 Lariat Crew Cab, 4x4 6.7L PSD, dually


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 Post subject: Re: Taxes and fulltiming
PostPosted: Mon Jul 17, 2017 2:08 pm 
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Joined: Thu Sep 26, 2013 8:47 pm
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OR Year: 2014
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Just keep in mind that we have 435 representatives and 100 senators devoted to closing loopholes in the tax code. If you find something that works for your situation, better to jump on it before it closes up. Best of luck.

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Pittsburgh
'12 Ram 2500 Cummins
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 Post subject: Re: Taxes and fulltiming
PostPosted: Wed Jul 19, 2017 6:28 am 
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Location: Nashvegas
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I know everyone can't do this - but being debt free is a better goal in my mind if you are full-timing. Debt free is a requirement for us as we consider going full-timing soon. Why pay a dollar to save 20-35 cents in deductions?

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Clark
2014 RAM 2500 Diesel, 16K Husky Hitch
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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jan 06, 2018 4:26 am 
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TVDoc wrote:
Just keep in mind that we have 435 representatives and 100 senators devoted to closing loopholes in the tax code. If you find something that works for your situation, better to jump on it before it closes up. Best of luck.


There are no "loopholes" in the tax code. Only deductions, credits, and allowances. Only those who are not in a position to avail themselves of a deduction, credit, etc call these things "loopholes". I can't take a child care tax credit, so is that a "loophole" for those who can?

Those characters are not going to close anything. They will just rearrange the deck chairs to make things better for themselves and their select constituents and put the screws to anyone they don't like or care about, and then claim they are looking out for us.


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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jan 06, 2018 10:19 am 
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Joined: Fri Sep 07, 2012 12:46 pm
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Location: Back in South Carolina
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Keep in mind if you rent the home you not only still have the expenses that come with it; the gain when you sell it because it becomes an investment and not your personal residence any longer; now you have renters. Renters can cause more problems unless they are SUPER people. First they might not pay, second renters have more rights in some states than the owner, third if you are travelling the house still has to be maintained for the renters (we had to replace a heat pump while traveling one year-not cheap). Last of all there is never any guarantee what condition your home would be in if ever the renters leave; whether on their own or if they are made to leave. Don't forget that the rent is now income and that will add to your tax liability. Claim the RV as main residence and any mortgage have their. We pay taxes because both our home and rv are paid for so we have no deductions and hopefully will do the "post card" tax return. As mentioned check into a state with no state taxes; that helps some.

Pay taxes; a lot less stress.

Jo

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Larry and Jo
Just us and Sweet Pea (kitty)
2012 OR 391RES/2015 White Ford F250 6.7 diesel crew cab
Full time over :cry: New stick built in South Carolina
"Enjoy it while you can! We're not promised tomorrow."


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 Post subject: Re: Taxes and fulltiming
PostPosted: Sat Jan 06, 2018 10:19 am 
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Joined: Wed Jul 20, 2016 7:04 pm
Posts: 26
OR Year: 2015
OR Model: 347RES
Member ID: ORF-10259
superman wrote:
I know everyone can't do this - but being debt free is a better goal in my mind if you are full-timing. Debt free is a requirement for us as we consider going full-timing soon. Why pay a dollar to save 20-35 cents in deductions?



Amen!

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Dennis, Linda, and Scout the dog
2015 Mesa Ridge 347RES
2013 Ram Cummins TD CC 4WD


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