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Level 1
March 6, 2019

MOTOR HOME DEPRECIATION

  • March 6, 2019
  • 1 reply
  • 11 views

If I purchase a new motor home in 2019 for $130,000 & use it 100% for business can I deduct the full price using 100% additional depreciation ???

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1 reply

IntuitJim
Level 5
March 7, 2019

Bender, thank you for joining community!

Interesting question or tax planning strategy. If you are depreciating it as a business vehicle, it is not subject to luxury auto limits and the answer appears to be yes. Bonus depreciation applies to personal property with a useful life of less than 20 years.

Motor homes are often treated as second residences, or even home offices. If you treat the MH as 100% business, make sure the taxpayer has another residence and isn’t only sleeping in the business vehicle, which would indicate personal use. Good luck!