Although I’m not a spendthrift, I feel as if I never have enough money in my bank account. Because I’m setting aside cash in order to buy a new home, I’m always searching for ways to decrease my monthly expenses. Fortunately, through my research, I’ve found some great, simple tips that provide substantial savings over time. For instance, I turn off my HVAC unit whenever I’m traveling. I also conserve gasoline by running all of my errands for the week on the same day. On this blog, I hope you will discover some easy, painless ways to lower your regular monthly bills. Enjoy!
If you are planning on purchasing a new RV, make sure that you let your accountant know about your purchase as well. Here are three different ways that you can save on your taxes when you purchase a new RV this summer.
You may be to deduct some of the sales taxes that you paid towards your RV from your taxes this year. When purchasing a large ticket item, such as an RV, the sales taxes, even if the percentage is not that high in your state, can really start to add up.
You will only qualify for this deduction the first year that you purchase your RV. Keep receipts that show what you paid for your RV as well as what portion of the final sales amount was comprised of sales taxes. You will have to fill out a special form for this via the IRS, Form 1040, which your tax accountant can explain to you in more detail and assist you with.
If you finance the purchase of your new RV, you may also be able to write off the interest that you pay on your RV for each year that you make payments on the loan that you take out. You are able to do this because the IRS does not consider an RV a vehicle for tax purposes; it considers an RV a second home, which is why you are able to write off the interest that you pay on your loan each year. This makes whatever interest you are paying on your RV's loan a little more bearable since you will be able to take it off from your taxes at the end of the year.
The company that holds the loan on your RV should provide you with information that lets you know how much of your payment each month was applied to interest, and how much was applied to the principle balance of your loan. You can deduct the portion that was applied towards the interest.
If in your state, your vehicle registration costs are based in part on the value of your vehicle, that portion of your vehicle registration can be deducted from your taxes. In most states, your vehicle registration status is either related to the weight of your vehicle, the perceived value of your vehicle, or both. If all or part of your vehicle registration is based on the perceived value of your RV, you can deduct this from your taxes each year that you have to pay vehicle registration costs. Contact a company like Saginaw Medical Federal Credit Union to learn more.Share
27 July 2016