An old teacher of mine was fond of saying, “just because you’re right, doesn’t also mean I can’t be right.” This was their way of saying that two things can be true if they don’t necessarily contradict each other. Why do I bring this up? Because here are two things that could possibly be true:
- You can travel the country in your RV and enjoy yourself.
- Your RV could be owned by a corporation and you could be getting great tax benefits.
Now here’s the thing I want to say right off the top: I’m not a tax attorney. In fact, you should never take financial advice from anyone in the internet, even if they are a tax attorney. But I know enough to try to point you in the right direction. Got it? Let’s get started.
Owning an RV through a corporation
An RV is a huge expense. It may be the second most expensive thing you ever buy, after your home. In some states, and RV is taxed as “real property” which means you need to pay property taxes on it. In other states it’s subject to an excise tax which is basically an extra tax on expensive things that states do because they can. Either way, the cost of having an RV is more than just gas and maintenance.
By the way, gas and maintenance aren’t cheap either. You probably know that if you have an RV. You could be getting as little as 6 miles per gallon, and gas can be a big cost if you happen to find yourself in a state like California. So chances are you’ll jump at the chance to save a little cash when operating your RV.
A lot of people do this through a business. If you own a business, you know it’s possible to expense out large purchases or depreciate assets against any income you have. As I said, I’m no tax attorney. You probably have an accountant who can explain this a lot better than me. But I know it can be done.
The potential for tax savings is a pretty good motivator to have your RV owned by a corporation, that’s the bottom line. But, if you’re doing this, there’s something you need to know about your satellite TV system.
Satellite TV on an RV
Chances are if you’ve had your RV for more than 5 years, it has a satellite dish on it. If you bought it used and it’s more than 5 years old, it probably has a satellite dish on it. Until fairly recently, an RV-mounted dish was literally the only way to get video while you were traveling. Cell phones weren’t powerful enough to do it and RV satellite internet systems were pretty rare.
That’s less true today, but even if you have a great cell phone plan or a Starlink dish, you’ll still appreciate satellite TV in your RV. You’ll run up against tethering limits or data caps on cellular and Starlink plans, and when that happens, you’re reduced to watching video on your phone’s screen. Hardly a good way to bring the whole family together, I’d say.
With satellite TV, you pay one fixed price and watch as much video as you want, all month long. Not only that, but the price you pay isn’t really that much. A lot of folks are finding that by combining just a few top streaming services, they’re paying a lot more than a basic satellite TV plan that gives them so much more.
The important thing about satellite TV and business-owned RVs
If your business owns your RV, then you must have a commercial satellite account. Generally speaking these don’t cost any more than a normal account. The channel lineups are the same. But it’s all classified a different way. This has to do with the way royalties are paid out, and it’s a matter of law. There’s nothing you or I can do about it.
If you have a “residential” satellite account and your business owns your RV, you’re guilty of something called “misclassification” and its a form of fraud that you can get prosecuted for. The reality is that in an RV, you’re not likely to get caught. But, I’ve seen it happen. Considering that there’s practically no financial difference between a commercial account and a regular one, it pays to be on the right side.
If you’re not sure if you have a commercial account, or even if you’re sure you don’t, there’s one company you can call to make sure you’re all cleared up. Call the experts at Signal Connect. We’re here for you during East Coast business hours at 888-233-7563. We’ll help you get all set up and we’ll make it easy. It doesn’t matter if you have DIRECTV or DISH, we can do both. We can also help you with your Starlink or cellular plan if you want.
Call us, or if it’s after hours just fill out the form below. It’s easy to get on the right side of the law. We’ll take care of everything.
