Would traveling in a RV affect our per diems?

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Would traveling in a RV affect our per diems?

Posted by Rebecca Herdlein on Oct 30, 2010 8:04 am


We are considering buying an RV and traveling with it.  How would this affect our tax home and tax free per diems?
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Re: Would traveling in a RV affect our per diems?

Posted by Mickey on Oct 30, 2010 8:29 am

Hey Rebecca!  Great question!

As you might know...  I've been traveling with my RV for a few years, now.  My per diem has never changed.  When I accept a contract, I ask for the "housing allowance" as well as the "food allowance".  The ONLY taxable income I have would be my "salary".  This way, my company does not have to look for an apartment or hotel for me.  I'm taking it with me!  Fun times!

Please keep in mind one important thought:  The "housing allowance" can change from job-to-job or state-to-state (e.g. higher living expenses in the Northeast than in South Texas, for example).  Also, there's more investigative work that YOU have to do....

Let's say that you know, a few weeks in advance, that you'll be heading to work in the Louisville, KY, area.  Well, you'll be needing to know of the campgrounds in the area, how much per night to stay, allow pets, etc...  In the Winter, you'll need to know if the campground is even open!  (mainly in the North)  I've ran into this situation before.  There are plenty of links on the web that can help you find a campground.  I have a few favorites, and if you want, I can send them to you.

I know... I'm off the "subject".  Sorry.

Bottom line??  No, it has not effected my per diem.  I just work my contracts a little different than most "travelers".  I might have mentioned before, that I always take the lowest taxable income, and the highest non-taxable rate.  Please keep all your expenses (gas, propane, miles, campground rental, etc...) in a spread-sheet and save the receipts!  You'll need them for your year-end taxes.  I've been "randomly audited" in the past, however, I had everything the IRS was asking for, and there was no problems at all.

Thanks for reading this elongated reply!  If you have any questions, please feel free to ask!  I think you'll love the RV life!  It's wonderful, you get to stay at some really beautiful places, and your neighbors are always great!

Mickey
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Re: Would traveling in a RV affect our per diems?

Posted by Mickey on Oct 30, 2010 8:38 am

Let me please just add one thing about finding the campgrounds to stay at while you travel in your RV.  Here is a photo of my front yard while I was working in Wilksboro, NC:



Yeah... I had to "suffer" through this every day when I got home.  But, I managed to get through it!  :^)

Mickey
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Re: Would traveling in a RV affect our per diems?

Posted by Joseph Smith on Oct 30, 2010 4:17 pm

Guess that should be the next blog article

An RV can function as either the 2nd home o the primary home. In your case, it has to be the 2nd home for you to receive tax free per diems. You will still have to maintain a fixed abode in addition to the RV. Otherwise all of the stipends/per diems/ allowances are taxable
Joseph Smith EA/RRT
Enrolled Agent, Respiratory Therapist
Admitted to practice before the IRS
www.traveltax.com
info@traveltax.com
402.379.7818
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Re: Would traveling in a RV affect our per diems?

Posted by Mickey on Oct 31, 2010 6:17 am

Excellent point, Joseph!  Thanks for mentioning that!

Yes, my RV is my second home.

Thanks!

Mickey
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Re: Would traveling in a RV affect our per diems?

Posted by blueskys on Oct 31, 2010 10:20 am

I have been travelling in my RV for a year and a half now.  I still have my home base (a condo), so the per diem and housing is tax free.

The advntages to RVing are that you  1)get a better deal if you find your own housing; IRS dictates the amount for the area you are staying);
    2) You are always packed and ready to go; the fridge moves with you so you dont have to throw away food each time;  3) Most RV parks allow pets,
4) Rvers are remarkably friendly and helpful; instant neighbors 5) you can stay overnight for free at most larger truckstops on your way to the next destination  6)  RV lot rents tend to be less expensive than furnished apartments  7) Most parks have monthly and seasonal rates  8)  If you want to take a weekend away, you can drive your RV to the destination and stay for $30-40 a night. no packing.
Disadvantages: 1) Not all areas have available RV parks, such as the bigger cities 2) You will be climate challenged; RVs are not well insulated altho they do have furnaces; but many northern parks are closed in winter anyway 3) you will need to tow a vehicle for daily commute; gas mileage in the RV is not good, especially towing  3)  You will need to learn how to live small; less closet space; refirgerator space etc.  4)RVs can be costly to maintain; it is a house AND a vehicle; I recently replaced my refrigerator ($1400, bcz its electric to gas conversion): repairs and maintenance run $100 an hour and up; need specialized service people

You have to have a tax base in order to get the tax free perdiem/housing

I find my parks by internet crawl.  If you cant find one and want the job, a GOOD recruiter may be able to help you.

Hope this helps
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Re: Would traveling in a RV affect our per diems?

Posted by marchese68 on Nov 10, 2010 6:26 pm

Mickey, I would love to get your favorite sites for finding RV campgrounds around the country.  I am planning on taking my RV on my next assignment.

thanks,

eric
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Re: Would traveling in a RV affect our per diems?

Posted by oneredcent on Nov 2, 2011 7:40 pm

Here is an awesome site for reviews on all kinds of RV parks. I tend to like to stay in KOA parks, they have special rates for carrying their card.
But I have used this site alot for travel assignments or just camping in general.

http://www.rvparkreviews.com/

Teri
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Re: Would traveling in a RV affect our per diems?

Posted by Reen219 on Nov 2, 2011 10:41 pm

Teri,   I have used that site for finding RV parks. But I also use the Good Sam website. It has listings for all RV parks in an area (not just the Good Sam parks). Between the two sites, I can find a park quickly.
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