Renting out my RV when not in use

[bigdaddybus]

I also wonder if you need any type of license or permit for the business. I know that in many places, vacation homes need to be licensed as such. Is the same true of vehicle rental businesses?

As for sales tax, you almost certainly need a business license for that. I know that I do for my collectibles business and I need to file quarterly returns even if I have zero sales that quarter. I would definitely not wait until March or April to look into those questions. You could wind up in some trouble for not doing things by the book.

All my research shows that RV rental income gets entered on a sxhedule C. And I depriciate the RV based on the percentage of rental use vs personal use.

[disneysteve]

All my research shows that RV rental income gets entered on a sxhedule C.

Yes, that's what I do with my collectibles sales.

I did have to get a business license in NJ in order to collect and submit sales tax. That's what created my sales tax account with the state.

[moneybags]

All my research shows that RV rental income gets entered on a sxhedule C. And I depriciate the RV based on the percentage of rental use vs personal use.

Yes this is correct for income tax. You can also deduct costs of running your rental business - insurance, advertising, etc. Sales tax is a separate tax issue. It is collected by you and paid to the states you go, not in April like your personal return. You need to register with your state as a business and start the process of filing these returns.

[disneysteve]

Yes this is correct for income tax. You can also deduct costs of running your rental business - insurance, advertising, etc. Sales tax is a separate tax issue. It is collected by you and paid to the states you go, not in April like your personal return. You need to register with your state as a business and start the process of filing these returns.

Exactly. This is the point I was trying to make. You don't just fill out a form and mail in a check for sales tax. You need to register the business and establish an account.

[bigdaddybus]

rental #1 complete:
- rented for 3 days, 68 miles put on the RV and 1 hour of generator use (well below the 300 miles and 15 hours included in the rental).
- No issues or damage. The renter would like to reserve for next year for the same weekend. My wife was very impressed by how clean the RV was returned.
- received payment of $743.05 to put towards the RV loan principal


Rental #2 complete
- rented for 7 days
- received payment of $1878.38 (renter paid for 1250 additional miles over standard rental)
no issues

Total income $2621.43

Thanks for the feedback on paying sales tax, getting registered as a company, etc. I am working on that now.

[bigdaddybus]

Here is what I have learned so far, both positive and negative

1. People will see what they can get away with. ex. Can I pick up the RV eight hours early and drop it off six hours late? While saying, I don't really need another days rental.
2. The cost is what it is, people will ask for half price, I just politely say no and move on.
3. I need to learn quite a bit more about small business taxes, deductions, etc. As I am moving from "trying this out" to establishing this as a side business I should have done more research early, but I will figure it out.
4. I am enjoying it! I am meeting nice people, helping them have the vacation they want, and learning a variety of things people are renting the RV for. Its nice to meet and help people with a shared interest in RVs.
5. Its good to do this as a side gig, vs. really needing the income. I have the control I want (rent only when I want and block off dates I don't want) and its a pretty low pressure way to earn extra money.
6. People want their $1500 deductible back. So far the RV has been well cared for by respectful renters.
7. Insurance is key, and I have talked with my agent to make sure I am covered.

[disneysteve]

Sounds great so far. An extra $2,600 in a short time is pretty sweet. Hopefully, over time, you'll start to get some return customers. Plus, a satisfied customer is your best advertising, telling their friends who are looking to rent about you. Keep us posted - and get the tax stuff worked out to keep yourself out of trouble.

[bigdaddybus]

Our first season of renting our RV is complete. Overall it has been a good experience and we plan to continue from APR-NOV of 2018. (I live in the Midwest and store the RV Dec 1st - April 1st.

Here are a few things we learned and updates:
1. We rented the RV 9 times between May-Nov
2. Grossed $13,500 in taxable income
3. Earned $1250 in non-taxable income
4. Will be depriciating the RV the next 5 years on our taxes. This results in a $14K deduction per year.
5. We have about $2200 in expenses to deduct from our taxes as well (RV Loan interest, LLC expense, oil changes, cleaning fees, etc.)
6. We ended up creating a LLC for the business.
7. The RV was damaged twice. $1150 in damage done to awnings. Repaired by RV dealer and paid for by renter. One of the TV's went up in smoke. New one was $175 paid for by renter, installed by me.
In both cases the renters brought the damage to my attention, there were no attempt to deceive, and both sides were satisfied with the resolution.
7. 4 renters gave us great online feedback, 5 did not provide feedback.
8. repeat business is coming in 2018!

Overall its been a good experience. If I had to say a negative its that I have spent considerable time cleaning the RV between users and that is WORK! (but I can deduct my cleaning fees on my taxes)

I currently have 100% if the money earned sitting in a dedicated savings account. In 2018, I will likely distribute the money 20% for repairs/upkeep, 40% in the kids college fund, and 40% towards paying off the RV early or investing.

If this becomes a long term business, I am considering a new RV every 5 years to always have a depreciating asset on my taxes and reduce the issues that come with owning an older vehicle.

Thanks for reading, and thanks for the feedback! especially about forming the LLC

[icecoled007]

Hello, I am new to this forum. I came across your post and really loved the level of detail and research you put into this. I am looking to do the same and was wondering if I can pick your brain on a few items.

Anyway you can private message me? I tried to message you but could not figure out how to do it.

[bjsint]

Anyone also no the rules about buying land and living out of an RV or trailer on it in San Bernadino County?

Specific question I know but worth a shot!

[rc33716]

RV rental info

You’re info is very informative— it Is hard to get real numbers from Outdoorsy and RVshare. Are you renting your rv again this year?? How’s it going? I am looking to purchase a new rv this fall- take it to Florida in January and February, then rent it next summer. I am already incorporated and own 6 semi’s which I lease out— the Idea of renting an rv to someone doesn’t scare me, nor does the insurance etc., I am most interested if I will get enough renters and income to make it work. Any info you can provide will be greatly appreciated

[Gailete]

Anyone also no the rules about buying land and living out of an RV or trailer on it in San Bernadino County?

Specific question I know but worth a shot!

I haven't a clue. I used to live out there, and we still had lots of big open land. Where shepherds used to graze their sheep is now a subdivision. When I saw a Google map of the area I had lived in (Muscoy near old Route 66) I was quite literally stunned!

Anyhow best wishes. I would be interested in where you finally end up!