What Every RVer Should Know About Taxes
Because we, as a nation and as a collection of individual states, have such a complex structure of taxation whether levied on income, sales, or property, it would be prudent for each RVer to understand as much as they can about the areas that would affect them. Every RVer, in fact every citizen, should know, at least, the basics about tax so that they may plan their life accordingly. Judge Learned Hand, US Court of Appeals – 1927-1961, once wrote:
“Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.
Commissioner v. Newman, 159 F.2d 848, 851 (2d Cir. 1947) – dissenting opinion
Because we, as RVer’s, travel in, live in, and work in more states and more situations than the average Joe (or Mary) we become subject to more issues than others, either by design or inadvertently. There is a lot of misinformation being spread about what can and cannot be deducted or of particular entities such as corporations, trusts or limited liability companies (LLC). Because of both being un-informed of the various tax laws or because of some attorney or accountant’s desire to “sell” their services for incorporation, trust formations or other legal products, some folks get involved with situations that merely complicate their lives and increase their compliance costs (filing extra returns) so much that they wipe out any tax saving that the corporation, trust or LLC was to save them in the first place.
My goal with this blog is to explain some of the tax laws, mostly on the Federal level, some on the state level where applicable, so that you, the RVer, whether a full-timer or a part-timer will know what you may deduct as to travel expenses, transportation expenses and other business expenses and how to determine how much you will save in taxes and whether it is worth your while to track and deduct these expenses.
I don’t intend to make tax preparers of you, but, I think you should know at least the basics.