The IRS has a new rule that would mean your home can’t be counted as a “car,” as long as it’s a “riding” vehicle.
It also says that the home is eligible for a tax break for vehicles that don’t have more than four seats and a roof.
RV renters and owners should take advantage of the new rules and consider renting out a rental vehicle if they don’t need a vehicle to be a “rental vehicle,” the IRS said in a blog post Thursday.
Owners of new vehicles must meet certain requirements, including having at least one passenger.
If they are renting out, they must pay the same federal tax rate as other rental vehicles.
Owners and renters could get a temporary exemption from the new tax rules, the IRS says.
They could also qualify for a refund.
The IRS has also issued guidance that explains how to deduct the cost of a “fixed rate” rental.
This includes things like insurance, maintenance and maintenance charges.
The IRS is still developing its rules for new vehicles.
But it has released guidance for owners of new cars and trucks to understand what it means to qualify for the exemption and how to get it.
The rule changes, which went into effect Thursday, are expected to cost taxpayers a combined $1,300 per year in federal tax bills, the Associated Press reports.
The tax break would apply to vehicles that are used primarily for personal transportation and do not have more seat or roof space.
This excludes the “rancher” RV and pickup trucks, which can’t have four or more seats and have no roof space, the AP reports.
It’s a major break for RV owners.
Under the new rule, a “private passenger vehicle” is defined as an RV with more than two seats and two or more wheels.
It can’t also have more passengers.
The Internal Revenue Service has also announced it will increase penalties for owners who fail to report their vehicle’s full cost of ownership.
The new rule will be applied retroactively to all vehicles that were registered before the end of the calendar year in which the owner applied for the benefit.
In 2016, owners of an RV that is leased to another vehicle will be subject to the new fee of $1 for each year they have not paid it, the new IRS rule says.
The federal tax credit for renters will also be reduced by 50 cents, and the exemption will be extended for two years to 2016.
The Associated Press contributed to this report.