Depreciation on a motor home used substantially for business isn’t deductible, according to the Tax Court. A couple with an insurance business bought a motor home
and took it to rallies, where they sold RV and other coverage to prospective clients. IRS disallowed their depreciation write-off for the motor home, and the Court agreed.
Although the couple used the RV two-thirds of the time for business, it also qualified as their second home because they used it for personal purposes for over 14 days during the year. And since no portion of the RV was used exclusively for business, business write-offs such as depreciation aren’t allowed (Jackson, TC Memo. 2014-160).