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Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Pioneer
Posts: 2
Registered: ‎03-16-2013

1098 confusion for second home

[ Edited ]

I own a travel trailer and it is financed through a credit union. They do not supply form 1098. Can I still deduct the interest paid on the loan?  I have seen conflicting statements about whether or not a travel trailer can be considered as a second home but it does meet the IRS definition of second home.  I would also like to do an amended tax return of the last two years to deduct the interest, as I did not know it was considered a second home, but I do not know what to send the IRS without the 1098?  Any suggestions? 

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: 1098 confusion for second home

Hello miduncan,

 

Welcome to H&R Block Community.

 

According to the tax rules, a second home is a home (house, condominium, cooperative, mobile home, house trailer, boat or similar property that has a sleeping, cooking, and toilet facilities) that you choose to treat as your second home. For a home to qualify as a second home, you must either:

  • Not rent the home at all during the year or
  • Use the home for personal purposes for more than the greater of 14 days or 10% of the number of days the home is rented at fair market value.

 

As long your travel trailer meets the IRS definition of a second home, then the interest for the loan on that travel trailer should be deductible. According to IRS Publication 936, any interest that wasn't reported to you on Form 1098 is deducted on line 11 of Schedule A for Itemized Deductions. For more information, you can go to the following link for IRS Publication 936: https://www.irs.gov/pub/irs-pdf/p936.pdf

 

If you filed your past year’s return with us using the H&R Block online tax program, you would need to use the H&R Block desktop/downloaded software to amend the prior year’s return. Go to the following link to access the H&R Block desktop/downloaded software for the prior years: https://www.hrblock.com/tax-software/updates-back-editions.html

 

If you prefer to amend your return at a local H&R Block tax office, you are more than welcome to do so, as well. The following is the link for the H&R Block Tax Office Locator: https://www.hrblock.com/tax-offices/local-offices/#!/en/office-locator/

 

If you have any questions, I'll be glad to help.

 

Lawrence,

Tax Research Specialist

Pioneer
Posts: 2
Registered: ‎03-16-2013

Re: 1098 confusion for second home

Thank you LawrenceA for  your response.  I am certain that it meets the definition of a second home and I have amended my tax.  My question now is what documents do I send to the IRS to show the interest I paid on an amended return if I do not have a 1098.  will an end of year statement be sufficient for the IRS? I have searched the IRS Publication 936 but have not found anything about the amended return and documentation required if no 1098 is available. 

 

Thank you for your time

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: 1098 confusion for second home

Hello miduncan,

 

For amending the return, you may attach any documentation that shows the amount of interest that was paid on the travel trailer in 2017. Make sure that the documentation(s) also shows that the travel trailer is owned under your name.

 

For instructions for amending the Federal return, go to the following link for Form 1040X Amended U.S. Individual Income Tax Return: https://www.irs.gov/pub/irs-pdf/i1040x.pdf

 

In regards to no Form 1098 available in reporting the interest on the tax return, go to page 8 of IRS Publication 936 under "How to Report" on the following link: https://www.irs.gov/pub/irs-pdf/p936.pdf

 

Regards,

 

Lawrence
Tax Research Specialist