New 2025 tax laws, 100% bonus depreciation, and dealer structuring strategies are giving campground owners powerful new ways to boost ROI and long-term profitability.
Park Model RVs (PMRVs) are quickly becoming one of the most profitable investments in outdoor hospitality. They offer resort-style lodging, attract higher nightly rates, and expand your customer base beyond traditional campers.
But beyond their guest appeal lies a powerful financial advantage: tax efficiency. Under the One Big Beautiful Bill Act (OBBBA) signed in early 2025, 100% bonus depreciation has been restored and made permanent for qualifying property, including most park model RVs.
That means campground owners can now write off the full cost of each unit in the year it’s placed in service. And when structured strategically by operating as both campground owner and park model dealer, you can unlock even greater tax and profit potential.
Why Park Model RVs Qualify for Accelerated Depreciation
Unlike site-built cabins, which are considered real property and depreciated over 27.5 or 39 years, PMRVs are typically treated by the IRS as tangible personal property with a recovery period of 20 years or less.
That classification opens the door for bonus depreciation and Section 179 expensing, two of the most valuable tax incentives available to business owners.
When your park models are used for nightly or short-term rentals, they are clearly business-use assets. That means they qualify for accelerated write-offs and full expensing under the new tax rules.
100% Bonus Depreciation Restored Under the 2025 Law
Before the new law, bonus depreciation was phasing down: 60% in 2024, 40% in 2025, and 20% in 2026. The One Big Beautiful Bill reversed this.
Now, property acquired and placed in service after January 20, 2025 qualifies for 100% bonus depreciation, and that rate is permanent. This applies to both new and used property, as long as it’s the first use by your business.
Example:
A campground purchases ten new PMRVs at $90,000 each in 2025.
Total investment: $900,000
Bonus depreciation deduction: $900,000 (100%)
Immediate tax savings at a 32% rate: $288,000
That’s nearly one-third of your investment returned instantly through tax savings, dramatically improving your after-tax cash flow and payback period.
Section 179 Expensing: Flexibility for Smaller Operators
Section 179 allows businesses to deduct the full purchase price of qualifying equipment up to $2.5 million in 2025, phasing out after $4 million in total purchases.
While bonus depreciation is automatic, Section 179 provides flexibility, letting you choose which assets to expense and how much to carry forward.
Used strategically, Section 179 can help smooth taxable income across years while still providing a powerful upfront deduction.
Other Tax Advantages of Park Model RVs
Beyond bonus depreciation, PMRVs offer additional tax efficiencies that traditional cabins can’t match:
- Faster Write-Offs for Site Improvements: Pads, utilities, and certain infrastructure elements often qualify as 15-year property, now eligible for 100% bonus depreciation.
- Lower Property Taxes: PMRVs are often assessed as vehicles or personal property rather than real estate, reducing annual property tax exposure.
- Deductible Interest on Financing: Loans used to acquire rental park models generate deductible business interest.
- Maintenance and Upkeep: Landscaping, utilities, and repairs associated with park models are fully deductible operating expenses.
Becoming a Park Model Dealer: The Next-Level Strategy
Forward-thinking campground operators are increasingly becoming licensed park model dealers, allowing them to purchase park models directly from the manufacturer at wholesale pricing and sell them to retail customers who place the units within their campground.
This approach creates two complementary revenue streams — and both come with significant tax advantages.
1. Campground Entity: Owning Units for Rental Income and Depreciation
Your campground entity continues to buy PMRVs from the manufacturer and place them into service as part of your rental fleet.
These units qualify for 100% bonus depreciation under the new law once placed in service. You benefit from nightly rental income, ongoing operational revenue, and accelerated deductions that enhance after-tax cash flow.
This structure remains the most direct way to capture immediate tax incentives while increasing occupancy and rate mix.
2. Dealer Entity: Selling Units to Guests and Securing Long-Term Tenants
Your dealer entity purchases PMRVs from the manufacturer at wholesale and resells them to the public, specifically guests who want to purchase a unit and locate it within your park.
This model provides multiple advantages:
Retail Margin: The dealer earns traditional sales profit on each unit sold.
Long-Term Occupancy: Once placed, these units are rarely moved, effectively locking in long-term site tenants and steady site-rent income.
Reduced Turnover Costs: Owners handle upkeep, cleaning, and furnishings, reducing operational burden for the park.
Tax Deductions for the Dealer: As an active dealership, expenses such as marketing, commissions, and demo unit costs are deductible business expenses.
3. Floorplan Financing: Deducting Interest Expense in Full
If your dealer entity uses floorplan financing, a revolving line of credit secured by your park model inventory, there’s an additional tax benefit.
Under IRC §163(j)(9), floorplan interest is fully deductible, even for businesses subject to the 30% limitation on interest deductions.
Example:
If the dealer carries $1 million of PMRV inventory at 9% interest, the entire $90,000 annual interest expense is deductible.
This carve-out was designed for vehicle and equipment dealers and applies to park model dealers as well, offering substantial savings and liquidity advantages.
4. The Combined Impact
When you operate as both campground owner and dealer, you:
- Earn retail profit on each sale
- Lock in long-term tenants who pay steady site rent
- Deduct floorplan interest on inventory
- Continue capturing depreciation benefits on any PMRVs your park owns and rents directly
The result is a vertically integrated model that produces both short-term cash flow and long-term stability, all while leveraging the full range of tax benefits available under the One Big Beautiful Bill.
Beyond Taxes: Building a Long-Term Business Ecosystem
Operating as both a park model dealer and campground owner isn’t just a tax strategy. It’s a long-term business model.
Sell PMRVs directly to your guests and secure long-term site leases. Control the quality and design of homes entering your park. Capture service and utility revenue for years to come. Increase your property’s asset value and NOI.
By keeping both the sale and the stay in-house, you create a vertically integrated, high-margin ecosystem that builds equity and brand loyalty.
Conclusion: A Smarter Way to Grow and Save
The 2025 return of 100% bonus depreciation changes the game for campground operators. Park Model RVs are now one of the most tax-efficient investments in outdoor hospitality — offering faster ROI, stronger cash flow, and lower long-term costs.
By taking the next step and becoming a park model dealer, you can multiply those benefits — capturing retail margin, deducting floorplan interest, and creating a sustainable business model that keeps guests and capital on your property for years to come.
Ready to explore the financial advantages of Park Model RVs?
Work with Great Outdoor Cottages, a leading park model manufacturer based in Georgetown, Delaware. We help campground owners, resort developers, and dealers design, build, and deploy high-quality park models that maximize both guest experience and financial performance.
Visit www.goccottages.com to learn how park models can strengthen your resort’s profitability and tax position.
Disclaimer
This article is provided for informational purposes only and does not constitute tax, legal, or accounting advice. Readers should consult with their own qualified tax professional or financial advisor to determine how these strategies apply to their specific circumstances.