I bought a 5th wheel trailer for vacationing. Can I deduct the interest on the loan for this 5th wheel? Where would it be listed?
You can deduct the interest paid on the loan you took out to purchase the trailer as acquisition indebtedness interest only if the loan is secured by the trailer and the trailer meets the requirements of a qualified home. A qualified home includes a house, condominium, cooperative, mobile home, boat or similar property that has sleeping, cooking and toilet facilities. You can only have one principal residence and one qualified second home. Regardless of whether the trailer qualifies as a home, interest on home equity indebtedness secured by another qualified home and used to acquire the trailer may also be deductible. The interest is deducted as mortgage interest on line 10 or 11 of Form 1040, Schedule A (PDF), Itemized Deductions.
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