Escapees March-April 2024

this could change soon as the Tax Cuts and Jobs Act is set to sunset in 2025. Solar Tax Credit The one credit I am seeing many RVers take advantage of is the solar tax credit. This credit (residential energy property tax credit) was extended with the In fl ation Reduction Act in August 2022. Good news for those who install solar through 2032! This credit is worth 30% of the cost of the installed equipment to run your solar power, including all wires, batteries, labor, equipment, etc. With this act, the credit will drop to 26% in 2033 and 22% in 2034, but there is still plenty of time for RVers to take advantage of it. Your solar power system must be fully operational the year you take the credit. This means if you bought equipment in December of 2023 and have it installed in January of 2024, then you take the tax credit in 2024. Your RV or motorhome quali fi es for this residential energy tax credit whether it’s your main home for those full-time RVing or your second home for part-time RVers. It would not qualify if the RV is used for commercial purposes since this is speci fi cally a residential energy tax credit. Running a Business From the Road I understand that running a business can be challenging on its own but don’t neglect taxes. No one likes a surprise come tax time. The two topics I see the most confusion or incorrect information on when running a remote business are mileage and travel expenses and the homeof fi ce. Just because you work from the RV doesn’t make it 100% used for busi ness. First, the space is tiny and second, how much space can truly be dedicated to business use when you’re living in it. There’s that fun saying that everything in the RV has two purposes, right? I rarely see a space in an RV that can qualify for 100% business use. If there is one, it’s typically a bunk house room or garage in a toy hauler. Keep in mind, this deduction will be so small due to the space constraints and the home of fi ce isa red fl ag on tax returns.

HEATHER RYAN is the owner of Tax Queen, a tax firm supporting RVers, nomadic entrepreneurs and digital nomads. As a federally licensed enrolled agent, she supports her clients year round with tax preparation and tax planning. With over 10 years of preparing tax returns, she’s helped clients fi le returns in over 33 states to date. She can also assist with multi-state returns and those living overseas. Education is a passion for her and she supports RVers through free articles on her website, a book Taxes for RV Owners and courses through Nomad Business Academy. She’s been nomadic with her husband since September 2016 including international RVing. She’s also hiked and kayaked countless miles and explored many new places all while enjoying local breweries and wineries along the way. peace of mind. Who knows, you might even become my next neighbor at a campsite or an Escapees gathering! Mileage and Travel Expenses Congrats on being able to work from anywhere. Unfortunately, that doesn’t make all your miles business mileage. Chances are you are choosing to live the RV lifestyle. Business mileage must have a speci fi c business purpose such as meeting with clients or customers, buying supplies for the business, etc. I would assume your weekly or monthly moves are for personal reasons and not business purposes. If you are parked at an RV park or campground and drive to meet with a client or customer, then the miles from the campground to meet with the customer will count as business miles. In order to take any business miles, you must keep a detailed written log. Electronic is fi ne for this but it needs to show the miles, date and purpose of the trip. There’s software and apps to help make this easier. Mileage is a red fl ag so make sure to not skip this important step. guidance and support, look no further than the Tax Queen. Don’t allow the intricacies of taxes to hinder you from pursuing your aspirations as an RVer. Since I’m a fellow RVer, I get it. With Tax Queen by your side, you will be well taken care of and have Ready to get your taxes sorted? If you’re an RVer seeking expert tax

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March/April 2024 ESCAPEES Magazine