Under current law, you can take a deduction for the interest you pay on up to $1 million of mortgage debt (plus $100,000 of home equity), which applies to your first and second homes. The House bill reduces that ceiling of qualifying debt to $500,000.
It’s worth noting that RVs or boats used for business purposes are treated differently from a tax standpoint than those for personal use.
Unlike many real estate experts who predict a decline in vacation-home purchases if the second-home mortgage deduction disappears, the boating industry is more optimistic.
Thom Dammrich, president of the National Marine Manufacturers Association, said the overall effect of tax-reform efforts should help both the boating industry and boaters through reduced taxes.
Both the Senate and House versions reduce the corporate tax rate to 20 percent from 35 percent percent, along with making a variety of changes to individual taxes that are intended to reduce taxpayers’ burden.