Cruising the high seas or open highways could start costing taxpayers a bit more.
If a provision in the House-passed tax bill makes it into the final legislation, owners of boats and recreational vehicles who write off the interest on their loans would lose that deduction.
The Tax Cuts and Jobs Act approved by the House last week eliminates the deductibility of mortgage interest on second homes. For RVs and boats that qualify as such — those with a kitchen, bathroom and at least one bunk — owners currently can deduct the interest they pay on financing those assets.
As written, the change would be effective in 2018, although it's uncertain whether the provision will make it into any final legislation. The Senate version of the tax bill, which was approved by the Finance Committee last week, retains the current treatment of mortgage interest for both first and second homes. (See chart below for other differences between the two bills.)