PDA

View Full Version : Didja Know....


kcquer
06-09-2005, 10:12 AM
If you finance an RV or travel trailer that has kitchen and bath facilities that the interest is tax deductible same as your home mortgage interest?

parrothead
06-09-2005, 10:36 AM
I think someone is telling you a story to get you to buy one. As far as I am aware, you can only deduct on primary residence. Now, if the trailer IS your primary residence, then have at it.

parrothead
06-09-2005, 10:38 AM
However, if you have a bbq related business, and competing and using this thing along the lines of competing, and is all a part of your business, then deductions and depriciation are in order. Of course you need to claim any prize money also.

willkat98
06-09-2005, 10:48 AM
However, if you have a bbq related business, and competing and using this thing along the lines of competing, and is all a part of your business, then deductions and depriciation are in order. Of course you need to claim any prize money also.

Then the trailer rig is also part of the busness. Doesnt need the whole mobile home facilities of bath and kitchen.

I'm sure Chad and others can comment on the business aspect and tax advantages of incorporating.

I see alot of teams that compete and sell their sauce and such are all LLC's. (limited liability companies)

So KC, check on these aspects as you look to finalize your purchase.

kcquer
06-09-2005, 11:21 AM
I think someone is telling you a story to get you to buy one

Not financing mine so there would be no reason for them to tell me that, it was posted on a salesmans wall at one place we looked. It was an IRS poster complete with Govt form #.


So KC, check on these aspects as you look to finalize your purchase.

My competition participation is going to be so limited as to not be worth any of these hassles. 1 this year definitely won't warrant it and not sure 3 or 4 next season will either.

kcquer
06-09-2005, 11:40 AM
I think someone is telling you a story to get you to buy one. As far as I am aware, you can only deduct on primary residence. Now, if the trailer IS your primary residence, then have at it.

Just verified this with my tax accountant.....
You can take a deduction on primary and a secondary residence. If you don't already have a vacation home or rental property that you're taking as a secondary deduction, an RV or travel trailer (with kitchen and bath facilities) qualifies. Most people don't know this and don't take advantage of it, just thought I would pass it along.

BTW-scratched a check for a 26' fifth wheel with slide this morning. Having the hitch installed tomorrow. Will post pic's when I can drag it home :D

Solidkick
06-09-2005, 11:57 AM
Note to self: Make a road trip to KC's this weekend.....the money tree seems to be in full bloom.........

Congrats on your new purchase!

BBQchef33
06-09-2005, 01:30 PM
However, if you have a bbq related business, and competing and using this thing along the lines of competing, and is all a part of your business, then deductions and depriciation are in order. Of course you need to claim any prize money also.


So if i claim the winnings from last year, i can write off the cost of the food, registration fees etc..? and depreciate the cost of the trailer?

The_Kapn
06-09-2005, 02:16 PM
However, if you have a bbq related business, and competing and using this thing along the lines of competing, and is all a part of your business, then deductions and depriciation are in order. Of course you need to claim any prize money also.


So if i claim the winnings from last year, i can write off the cost of the food, registration fees etc..? and depreciate the cost of the trailer?
YUP, but....
Short version:
All income of this type is "taxable". All allowable expenses are deductible (to a point).
IF "BBQ COMPETETION" is a HOBBY--deductions are limited to the amount of income from the hobby. Specifically, you can not use "Hobby Expenses and losses" to offset other income.
IF "BBQ COMPETETION" is a BUSINESS--Same rules except you can offset other income if you have a legitimate loss.
So, the issue is...HOBBY or BUSINESS??
If it is a BUSINESS, most people take the proper steps to make it a real and legitimate business. This might be (but not limited to); advertising, creating a formal business structure, licensing, seperate financial records, etc. Lots of possibilities and "the more-the better".

I have been involved in "side businesses" for 30 years or so. A legitimate business is a great thing. I pay my taxes on profit and take my losses as they fall.

A Hobby you think is a Business can get you into problems if you offset other income with it. :twisted:

I am an amateur--talk to your financial guy to get the full "skinny" on all of this.

And, yes, fully equipped RV's meet the requirement for "second home interest deductibility". We do that also.

TIM

parrothead
06-09-2005, 02:18 PM
So if i claim the winnings from last year, i can write off the cost of the food, registration fees etc..? and depreciate the cost of the trailer?

If you are operating some kind of home business. In this case BBQ. Such as catering, a retaurant, etc. These expenses would be advertising.

You should be able to claim a loss for 3 years.

JudgeTex
06-09-2005, 02:36 PM
Ah... tax loopholes... writing off your hobbies. I have played in bands for 10 15 years and always make them give me a 1099 so I can write off all of my guitars, drums, etc.

Solidkick
06-09-2005, 04:26 PM
Ah... tax loopholes... writing off your hobbies. I have played in bands for 10 15 years and always make them give me a 1099 so I can write off all of my guitars, drums, etc.

not to hijack the thread, but, I did too, for 32 years. wouldn't have claimed my deductions if i hadn't have been handed a 1099....LOL

BBQ'n tax right offs.......I gotta look into that.........