Motorhome used for business

[Lee B]

This reminds of an interview with some prospective clients who wanted to deduct their Million $ Motor Home as a business expense.

 The IRS position will be that all second home expenses are personal.

Your clients will have to document all of their business related deductions.

Edited September 24, 2024 by jklcpa
separated out into its own topic

[Medlin Software, Dennis]

"Million $ Motor Home as a business expense"

Licensed in MT with an LLC as owner? This is a common scammy thing many RV owners fall for. While there is nothing wrong with the acts separately (at least while MT is "friendly" to such registration), other states look for MT license plates, especially when the person gets sloppy and their trailer. towed car, etc., and maybe even their DL is from a different state. Meaning MT plates on a MH is a red flag and the owner best have all vehicles with MT tags, a MT DL, etc. (and they may still get pulled over for a reg check).

I looked at it (nowhere near a 1mil vehicle), as the reg and tax costs are minimal, but licensing and insuring via LLC is sketchy. I keep asking my tribe to take on the feds again and allow me to license (at least until ordered by a court not to) via my tribe in OK (the agreement allowing tribal plates has many gray areas). I would lose as my physical state has a "presence" license requirement, but it would be interesting to me to see if they bothered.

[Medlin Software, Dennis]

On 9/19/2024 at 1:56 PM, Lee B said:

This reminds of an interview with some prospective clients who wanted to deduct their Million $ Motor Home as a business expense.

 The IRS position will be that all second home expenses are personal.

Your clients will have to document all of their business related deductions.

The last line is the key for me. When we are on the road, I have starlink which is business expense (it is the mini, so it also for work at home as a backup). For personal, we have our cable internet at home, and on the road, cellular. If I have to do something work related, say go get supplies (while on the road), I document miles/expense as appropriate. If I needed to forward mail, the costs would be business too, any forwarding costs, the price of the receiving box (say UPS box). Expensed the work related hardware, such as a router which can share Wifi, cell, and starlink, hardware to send starlink up a pole, a separate charger which stays in the MH, battery backup, etc.

If I were travelling for business, then I would likely use actual, such as the 5-9mpg for fuel, tolls, parking costs, etc. I would remove any personal items, say an out of the way stop/tour. There are absolutely some who have the million+ MH who spend a large amount of time on the road and make a living documenting their travel. I would have no issue using that MH as a business expense if they can document it (one I can think of has a home they use for domicile, and their travel is for specific locations, to test products, etc., and they no longer MH for personal reasons).

[jklcpa]

If not the sole residence, the use of a motorhome for business falls under the interpretation of 280A(f) like any other 2nd residence would.

Here's an older post from Bradford Tax Institute with its discussion on this matter that some here may find interesting or useful:

https://bradfordtaxinstitute.com/Content/IRS-Audit-Questions-Motorhome-Use.aspx