Majority Of Senior Recreational Vehicle (RV) Buyers Will Not Qualify for Tax Breaks Offered In Stimulus Package

In a smaller and obscure part of the senior housing industry, an RV dealer put out a press release that analyzed the stimulus package recently passed by the Obama administration that makes the claim that 85% of RV buyers will not qualify for RV tax breaks offered in stimulus package. According to the release, in order to qualify for the sales or excise tax deduction on an RV purchase between now and December 31, 2009, an individual must individually earn less than $125,000 per year, or jointly earn less than $250,000 per year and the deduction only applies to motorized RV’s and not travel trailers or other towable RVs. Studies show that 85% of new RV purchases were towable RV’s and the sales tax is only deductible on the first $49,500 of the purchase price which according to Greg Gerber of RV Industry News equates to “…buy a motorhome for $50,000 or $200,000 in a state with an 8 percent sales tax rate and you’ll only get to deduct $3,960 off next year’s taxes.” If you can’t get get any tax breaks for purchasing a home, a lower, federally subsidized interest rate or a reverse mortgage, you could look at purchasing a used motorized RV.

For the full release, click here.