Park models with axles are vehicles, not buildings, so you can depreciate them faster for taxes. Donna Genie explains how this distinction lets campground owners deduct the full cost in years instead of 39. Donna Bourdeau at campgroundaccounting.com can help fix past depreciation mistakes.
As a building over 39 years.
Do you have park models and cabins in your campground? If you do, please take out your tax return and look at your depreciation schedule. If you find that you have cabins that have axles under them, they're part of the RVIA association where they are set up with axles. Even if you never intend to move them. If they have an axle and can be transported if you want them to, and they are not affixed to a foundation in the ground, those cabins should not be depreciated as a building over 39 years. Many people who don't understand the campground industry may not have a clue that there could be an axle under a cabin. They're just used to seeing that as a building. But as an industry specialist, we know to watch for this. This could make the difference between deducting a 40, 70, whatever the price is now, thousand dollar cabin in one year or over 39 years. This is a huge difference in depreciation. If you find that you've got a problem with this and they were incorrectly depreciated in the past, we can help. We'll help you get that information caught up and take all of the deduction that you deserve immediately. Let us know if we can help you dive into this fun topic of depreciation.
I'm Donna Bourdeau from campgroundaccounting.com Please follow us on Facebook and Instagram. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me at donnaampgroundaccounting.com.
RAM.
