Late this morning our fairly quiet section of the resort was invaded by over a dozen large, Class A motorhomes from California. Now when I say large, I mean, many fo these are built on a bus chassis, with diesel engines and dual rear axles with 6 tires. All of these units look immaculate and are loaded with options, including tow behind vehicles so they can cruise around once they park their rig. The price tags for these can be several hundred thousand dollars and extend north of the million mark! Where do these people get their money?!

The resort we're staying in has probably close to an equal mix of motorhomes vs. Trailers, and none look like they're too old! We're all wondering where old motorhomes go to die because you don't see too many around.

Well, apparently the tax rules for Americans concerning RV's are similar to the rules for homes. So, any interest they pay for mortgages on homes (and RV's) is tax deductible. They also can depreciate their RV's over time so in the end they get a much better deal on buying a home and/or RV.

For full time RVer's, there is an additional tax strategy they many take advantage of and that is registering as a resident of a state that has no income tax. There are currently seven states that don't have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. So if you don't care where your mailing address is, there is an opportunity to keep even more money in your pocket.

Speaking of California, we've been watching the weather from LA the last few days and they have been getting hammered with rain. One place got just under 3" in 24 hours! The 5 year southern California drought is officially over now due to all of the rain and snow they have received over the last week.