Filing timeshare rental income

susiequeve · February 22, 2007, 11:14 AM

Does anyone know if you have to claim income from a 5 day timeshare rental? I rented my Cape Cod timeshare last year for only 5 days and receive a 1099 from the government.

Any info would be greatly appreciated.

DeniseM · February 22, 2007, 12:21 PM

This TUG article should have the info. you need: TS Taxes

And this recent thread - Tax Thread

For more info. use the search function and search for "tax."

Dave M · February 22, 2007, 12:23 PM

Yes, you must report the income, but you will have some expenses that can be offset aghainst the income. See the Rental Income and Vacation Home sections of this Income Taxes and Timeshares article from the TUG Advice section.

(Edited to note that you beat me to it, Denise!)

susiequeve · February 22, 2007, 01:20 PM

Thanks to both of you for the advise.

Susiequeve

Spence · February 22, 2007, 01:34 PM

Quote:

Originally Posted by susiequeve

Thanks to both of you for the advise. Susiequeve

Advise is a verb, maybe you mean advice? I doubt the 1099 came from the government, it came from whatever organization you brokered the rental through. They sent it to you and the government. So, my advice to you is to account for it on your taxes.

susiequeve · February 22, 2007, 07:22 PM

Hey Spence, Thanks for the ADVICE !!

wbtimesharer · February 22, 2007, 10:05 PM

I was wondering how one would get a 1099 on a personal rental. I did not realize that it was done through an agency. That must be who sent it.

Bill

JimIg23 · April 6, 2007, 05:40 AM

Another rental tax Q if anyone knows:

If you spilt a lockoff and rent the studio part and use the one-bedroom for personal use. (and are not a normal every year renter) For dedection purposes, would you apply 1/3 or 1/2 of the year MF/taxes to the rental as a deduction against the rental income? Example: You rent your studio side of the 2 bedroom LO unit for $1000. You use the 1 bedroom for personal use. The total annal FF/taxes/SA is $1,000 in a combined bill. What would you use as a deduction against the rental income? Thanks!

Dave M · April 6, 2007, 08:00 AM

The tax rules provide that you should make a reasonable allocation of the expenses. That applies to depreciation as well as the MFs and taxes.

Because the square footage, fair market value and rental value of the studio are all likely to be less that one half of the total, I believe something in the range of 25%-35% of the total would be appropriate, but it's your call.

Also, if you have used the unit for personal use (occupancy, exchange, gift to a friend or relative, etc.) in any prior year, depreciation should be calculated based on resale value or your purchase price, whichever is lower.

February 22, 2007, 11:14 AM	#1
susiequeve TUG Member BBS Reg. Date: Jan 2, 06 Location: Warren, Rhode Island Posts: 226 Resorts: Westin Kierland Villas, Marriott Cypress Harbour	Filing timeshare rental income Does anyone know if you have to claim income from a 5 day timeshare rental? I rented my Cape Cod timeshare last year for only 5 days and receive a 1099 from the government. Any info would be greatly appreciated.

February 22, 2007, 12:21 PM	#2
DeniseM Moderator TUG Lifetime Member BBS Reg. Date: Jun 6, 05 Location: Northern, NV Posts: 33,860 Resorts: Starwood-WKORV, SDO, & SVR, Roark Vacation Club, Kingsbury Crossing, 3 X Kauai Beach Villas, Edinburg Residence	This TUG article should have the info. you need: TS Taxes And this recent thread - Tax Thread For more info. use the search function and search for "tax." __________________ Aloha! DeniseM TUG Moderator My Webpage Last edited by DeniseM; February 22, 2007 at 12:24 PM.

February 22, 2007, 10:05 PM	#7
wbtimesharer TUG Member BBS Reg. Date: Jul 21, 05 Location: Northern Illinois Posts: 412 Resorts: Meadow Ridge & The Rushes, Door County WI; Fox Hills Resort, WI, PepperTree @ Tamarack WI, CMV Cottage UDI (4); OakMo	I was wondering how one would get a 1099 on a personal rental. I did not realize that it was done through an agency. That must be who sent it. Bill __________________ Timesharing-Never has being forced to do something felt so darn good.

April 6, 2007, 05:40 AM	#8
JimIg23 TUG Member BBS Reg. Date: Feb 9, 07 Posts: 945 Resorts: NCV, MHZ	LO MF split Another rental tax Q if anyone knows: If you spilt a lockoff and rent the studio part and use the one-bedroom for personal use. (and are not a normal every year renter) For dedection purposes, would you apply 1/3 or 1/2 of the year MF/taxes to the rental as a deduction against the rental income? Example: You rent your studio side of the 2 bedroom LO unit for $1000. You use the 1 bedroom for personal use. The total annal FF/taxes/SA is $1,000 in a combined bill. What would you use as a deduction against the rental income? Thanks!

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February 22, 2007, 12:23 PM	#3
Dave M TUG Lifetime Member BBS Reg. Date: Jun 16, 04 Location: Sun City Hilton Head, SC Posts: 12,227	Yes, you must report the income, but you will have some expenses that can be offset aghainst the income. See the Rental Income and Vacation Home sections of this Income Taxes and Timeshares article from the TUG Advice section. (Edited to note that you beat me to it, Denise!)

February 22, 2007, 01:20 PM	#4
susiequeve TUG Member BBS Reg. Date: Jan 2, 06 Location: Warren, Rhode Island Posts: 226 Resorts: Westin Kierland Villas, Marriott Cypress Harbour	Thanks to both of you for the advise. Susiequeve

February 22, 2007, 07:22 PM	#6
susiequeve TUG Member BBS Reg. Date: Jan 2, 06 Location: Warren, Rhode Island Posts: 226 Resorts: Westin Kierland Villas, Marriott Cypress Harbour	Hey Spence, Thanks for the ADVICE !!

April 6, 2007, 08:00 AM	#9
Dave M TUG Lifetime Member BBS Reg. Date: Jun 16, 04 Location: Sun City Hilton Head, SC Posts: 12,227	The tax rules provide that you should make a reasonable allocation of the expenses. That applies to depreciation as well as the MFs and taxes. Because the square footage, fair market value and rental value of the studio are all likely to be less that one half of the total, I believe something in the range of 25%-35% of the total would be appropriate, but it's your call. Also, if you have used the unit for personal use (occupancy, exchange, gift to a friend or relative, etc.) in any prior year, depreciation should be calculated based on resale value or your purchase price, whichever is lower.