Working on the road: What about tax advantages?
In a story in “money.cnn.com” a reader who fancies the fulltime RV lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take his business anywhere.
The CNN columnist did a little looking and said that in his analysis, going on the road could have some distinct advantages, and few downturns. Some of the comments are of interest to those looking at fulltiming, or who’ve already made the transition.
First, there’s always the question of “residency.” If you’re a fulltimer, what is your state of residence for tax purposes. A certified financial planner brought in to answer the reader’s question had this to say: “Vehicle registration is one factor the IRS uses to fix your legal residence. Even if you drive your RV across the country, registering it in Florida will make you a resident. Just remember to return when it’s time to have the RV inspected.”
For the reader, this makes a great deal of sense, after all, Florida has no state income tax.
Since the RV would become the reader’s residence, the financial planner suggests that the “home office deduction” would apply for income tax purposes; and like the mortgage interest deduction on a “stix and brix” home, the finance charges on the RV would likewise be deductable.
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June 12th, 2008 at 12:52 pm
[…] Original post by Full Time RVer […]
June 14th, 2008 at 6:10 am
I fulltime traveling around the country selling my software to auto dealers. I have vehicle registration in SD and use that as my legal residence. I no longer have a “domicle” as recognized by the IRS. I would like to know if I can claim my travel expenses - campground fees, motor home fuel, and the like - as I travel from city to city doing business. My tax preparer is very cautious and feels this falls outside the “domicle” rule the IRS uses. Does anyone have any feedback or help for my tax situation. Thanks
June 14th, 2008 at 12:00 pm
[…] Working on the road: What about tax advantages? In a story in “money.cnn.com” a reader who fancies the fulltime rv lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take […] […]
June 15th, 2008 at 3:26 pm
jdynan
I travel from Miami, FL to Salt Lake City, Utah once a year
and all my mileage Or Fuel I can use on my taxes as this is for my Job. You can not use your campground fees to the the next job or your meals. But when you get to the next job then you can use the campground fees on your taxes
June 28th, 2008 at 6:59 pm
[…] Working on the road: What about tax advantages? In a story in “money.cnn.com” a reader who fancies the fulltime rv lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take […] […]
July 26th, 2008 at 11:00 pm
[…] Working on the road: What about tax advantages? In a story in “money.cnn.com” a reader who fancies the fulltime rv lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take […] […]
September 6th, 2008 at 2:00 am
[…] Working on the road: What about tax advantages? In a story in “money.cnn.com” a reader who fancies the fulltime rv lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take […] […]
September 30th, 2008 at 7:54 pm
[…] Working on the road: What about tax advantages? In a story in “money.cnn.com” a reader who fancies the fulltime rv lifestyle was concerned about how working on the road as a fulltimer might affect taxes. The reader has a job as a mortgage broker in Florida, a wife, and two children, but can happily with the advent of wireless internet communications take […] […]