|Camping and RV Articles||>||RVs can Trim Annual Tax Bill|
RVs can Trim Annual Tax Bill
|A recreation vehicle is the ticket to get away from the stress of today's society, as well as a way to get a little relief from today's high taxes. That's right; owning a recreation vehicle saves on taxes and keeps money in your pocket instead of in the hands of the government. |
In order for a vehicle to save jingle at tax time, it needs to pass the test of being a second home. To be considered a "second home," all an RV needs is cooking, sleeping and bathroom facilities. Virtually all RV types-motor homes, travel trailers, truck campers and even some folding campers-may be equipped with these facilities. Tax savings depend upon the monthly loan payment, the length of the loan and the interest rate. For example, a $15,000 loan for a term of ten years with an interest rate of 8 percent will shave about $15.45 a month from taxes. For the entire 120-month loan period, the total savings will be $1,854.
Getting a loan for an RV is easy because recreation vehicle owners are considered good credit risks. In fact, less than 1.9 percent of all RV loans are delinquent. As a result, lenders are extending RV loan terms and making monthly payments more affordable, according to a survey of RV lenders. Loan terms for both new and used, large RVs typically extend up to 15 to 20 years. Whether the purchase is financed through a bank, savings and loan, finance company, credit union or RV dealer, the average minimum down payment is 10 percent. This makes it easy for the family on a budget to get into the RV lifestyle economically.
For more information, visit the Michigan Association of Recreation Vehicles and Campgrounds (MARVAC) Web site, marvac.org MARVAC is a statewide, non-profit organization dedicated to encouraging growth in the recreation vehicle and private campground industries while contributing to the quality of Michigan tourism. MARVAC, 2222 Association Drive, Okemos, Mich. 48864-5978; 517.349.8881.