The RV sector has steadily grown over the years. In the United States alone, the RV sector generates about $50 billion every year, as reported by the RV Industry Association. In Canada, Statista revealed that the industry successfully garnered more than $7 billion in retail sales annually. Moreover, some people are willing to sell their home in order to buy an RV and hit the road for a dream life filled with adventure.
The RV industry impacts not just the selling of the RV units themselves; but other related businesses as well. This article walks through the qualifying factors that make an RV a great second home, and why you should start listing your RV as your second home.
What qualifies an RV as a second home?
To qualify an RV as a second home, it needs to meet the following criteria:
Have a sleeping compartment
The primary thing that RV owners need to qualify their RV as a second home is proper sleeping arrangements. While people can still use shared space to sleep, such as the bench or couch, they cannot be considered as a qualifying component.
The RV needs to have a distinct sleeping compartment, regardless of whether it is a small RV with just a single bed or a luxurious unit with a king-sized bed.
Have a functioning bathroom
The next thing that the RV needs to have is a functioning bathroom, regardless of how simple the bathroom may be. The RV bathroom, however, needs to have a functioning toilet, sink, and a shower station. There is no specification on the shower station.
Equipped with a working kitchen
Another thing that the RV needs to have to be considered a second home is a working kitchen. The kitchen should be equipped with a stove, fridge, and electrical hook-up. This set-up will help the RV owners store any other cooking equipment in the kitchen conveniently.
Fortunately, most big RVs come with a standard galley-design kitchen that easily fulfills this requirement.
Comply with specific IRS standards
Aside from ensuring that the RV possesses the necessary spaces and equipment, it must also satisfy the specific requirements of the Internal Revenue Service. Before receiving interest tax breaks on the RV, the owners need to ensure that their loan does not exceed $1.1 million, including all of their other listed properties.
Made with the correct kind of vehicle
Not all types of RVs can be listed as a second home. The RV must have the capability of moving on its own. Hence, on-a-trailer-RV or those that need to be hitched are not qualified to be listed as a second home, even if they are entirely equipped with the necessary arrangements.
Reasons why you should list your RV as a second home
While the economic impact of the RV industry indeed benefits other relevant businesses, listing the RV as a second home can also bring several benefits for the owners, which include:
- Tax benefits: RV owners can claim tax breaks on their RVs that qualify as a second home.
- Gain relief on combined mortgages: Possessing several properties qualified as homes, including RVs, can help owners get some relief on their mortgages.
- Get homeowners insurance: Owners can ask for car insurance quotes to see if they qualify for special insurance discounts to cover several properties by listing both their residence and RV as their homes.
Over the years, an increasing number of people have invested in RVs, either for adventure or as their second home. If your RV meets this specific list of criteria, we strongly encourage you to reap the benefits of listing your RV as a second home.