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Reporting to IRS for Rentals and Traveling with Babies

cbyrne1174

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I read somewhere that you can rent out up to 14 days without having to report to the IRS. I found out 3 weeks ago that I'm having another baby and have about 273,000 points a year to use past renting out 14 days. If I rent out more than 14 days, do I have to report it to the IRS?

I'm also thinking of just spending all of my leftover points at Clearwater around this time of next year since I live in Tampa. My rentals cover 100% of my MF. I could get a 2 BR and alternate leaving the room with my husband, sister and parents so the baby never leaves the room. I also don't have to take off work since my job is only 30 mins from the resort. Do many people travel like this with 4 month olds? With my daughter, she never left the house for the first 3 months.
 

Richelle

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I would not recommend asking strangers on the internet for tax advice. Mainly because state tax laws can vary. Also, it’s one thing if someone gives you bad advice on what points to buy or when you should book something. It’s a whole other thing to get bad tax advice that gets you in trouble with the IRS and you get audited. Talk to a tax advisor in your area that is familiar with the local tax laws. They can better answer your question.

My son was a premie, so we had to keep him isolated for the first few months at home. After that, he could go to day care and be around other kids. However, I still kept him out of crowded spaces or airplanes with recirculated air for awhile. He went on his first subway trip when he was a two. He went on his first airplane ride when he was 3. Viruses and bacteria were only one reason I limited his exposure to public spaces. Had he been a full term baby, I still would have kept him out of crowded public spaces for the first few months of his life. The other reason is stimulation. The world is a noisy bright place. A lot to take in for an infant. Is that what you were asking?

Btw, congrats!


Sent from my iPhone using Tapatalk
 

davidvel

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I read somewhere that you can rent out up to 14 days without having to report to the IRS. I found out 3 weeks ago that I'm having another baby and have about 273,000 points a year to use past renting out 14 days. If I rent out more than 14 days, do I have to report it to the IRS?
Sorry, but what you read is poppycock. All income must be reported to IRS.
 

dioxide45

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The 14 nights may be more what would be considered a commercial operation? Though still not likely since any type of rental income would most likely be reported on a schedule C. As mentioned, all income is to be reported.
 

kaljor

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I am not qualified to offer any tax advice. My reply is a based only on my observation of human nature. I would wager that no more than 20% of folks who rent their timeshares report any income unless its a big amount. Yes I'm a generally cynical person, but I've noticed in my lifetime that people who have extra income that is not directly reported to the IRS rarely volunteer that information.

Personally, I don't have enough points to rent any, so I haven't been tested myself. But to be real, if I ever had the the opportunity to do a one time rental, I really don't know if I would report that income. I do know that I wouldn't worry about it either way. It's small potatoes.
 

jwalk03

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I read somewhere that you can rent out up to 14 days without having to report to the IRS. I found out 3 weeks ago that I'm having another baby and have about 273,000 points a year to use past renting out 14 days. If I rent out more than 14 days, do I have to report it to the IRS?

I'm also thinking of just spending all of my leftover points at Clearwater around this time of next year since I live in Tampa. My rentals cover 100% of my MF. I could get a 2 BR and alternate leaving the room with my husband, sister and parents so the baby never leaves the room. I also don't have to take off work since my job is only 30 mins from the resort. Do many people travel like this with 4 month olds? With my daughter, she never left the house for the first 3 months.

I never sheltered my children like this when they were new borns. My son took his first roadtrip when he was 3 weeks old! We had to drive 6 hours out of state (it took more like 8 hours because of the extra stops we had to make to feed & change.) to a wedding for one of my best friends. We did bring my mother in law along so he could stay at the resort with her while we went to the wedding, but otherwise he came along to the pool and out to eat and everywhere else we went as a family during the trip.

We also took him on a week long vacation to Hilton Head when he was 2.5 months old.

My daughter flew multiple times before she was two (those free tickets were nice!) though I think the first time was when she was 10 or 11 months old.
 

paxsarah

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Do many people travel like this with 4 month olds?

We spent nearly a week at Disney World when my daughter was 5 months old, so if you mean traveling at all, yes. If you mean traveling while keeping the baby in the room all the time, no. I wore her in a sling pretty much the whole time and she went everywhere we did.
 

chapjim

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I read somewhere that you can rent out up to 14 days without having to report to the IRS. I found out 3 weeks ago that I'm having another baby and have about 273,000 points a year to use past renting out 14 days. If I rent out more than 14 days, do I have to report it to the IRS?

I'm also thinking of just spending all of my leftover points at Clearwater around this time of next year since I live in Tampa. My rentals cover 100% of my MF. I could get a 2 BR and alternate leaving the room with my husband, sister and parents so the baby never leaves the room. I also don't have to take off work since my job is only 30 mins from the resort. Do many people travel like this with 4 month olds? With my daughter, she never left the house for the first 3 months.

"Read somewhere" ??

Free legal advice. Report income to the IRS.

I don't have any free parenting advice but you'll probably get some.
 

Luanne

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The 14 days or less tax rule was on TurboTax:

https://turbotax.intuit.com/tax-tip...rbnb-homeaway-vrbo-vacation-rentals/L8CEWgLSP

I used Redweek for rentals. I guess I can just see if the IRS picks up on the income. I only rent out 2 Bonnet Creek weeks a year.
Don't know if the IRS would pick up on the income if you don't report it. However, there are always those pesky audits.

One year we rented our unit out through the management company of the resort. The rental was only for 7 days, but we received a 1099. I reported it.
 

dioxide45

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Would your timeshare week also qualify as your residence under said 14 day rule?
 

55plus

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Income is income. It's like, a sales weasels by any other name is still a sales weasel...
 

davidvel

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Luanne

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The section (IRC 280A(g)) requires that you are renting your residence, not a timeshare.
Good point. I didn't catch that when I first read the link.
 

dioxide45

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If your vacation home qualifies as a residence, yes.

"Notwithstanding any other provision of this section or section 183, if a dwelling unit is used during the taxable year by the taxpayer as a residence..."
It seems based on the rule that you only need to use it yourself for 14 days to qualify under the 14 day rule. So if you don't stay at your home resort for at least 14 days, then this rule wouldn't apply.
 

55plus

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Declare it all and avoid an audit unless you have a CPA that says otherwise.
 

davidvel

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It seems based on the rule that you only need to use it yourself for 14 days to qualify under the 14 day rule. So if you don't stay at your home resort for at least 14 days, then this rule wouldn't apply.
Even then I doubt IRS will consider it a residence, unless something more is involved (like fractional interest) than renting out timeshare weeks.
 

chapjim

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If you rent for less than your maintenance fees, I suppose there is not a need to report.

One should report all income. That is what the legislation and Treasury regulations require but it's up to you. What I'm telling you is the advice you would get from an attorney or an accountant.

Expense the maintenance fees, selling costs, etc., if you want but last I knew, claiming a loss is not allowed. (I've been able to earn a very modest profit lately so it hasn't been an issue. I've divested some losers in the last couple of years so I hope it will continue not being an issue.)
 

montygz

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I read somewhere that you can rent out up to 14 days without having to report to the IRS. I found out 3 weeks ago that I'm having another baby and have about 273,000 points a year to use past renting out 14 days. If I rent out more than 14 days, do I have to report it to the IRS?

I'm also thinking of just spending all of my leftover points at Clearwater around this time of next year since I live in Tampa. My rentals cover 100% of my MF. I could get a 2 BR and alternate leaving the room with my husband, sister and parents so the baby never leaves the room. I also don't have to take off work since my job is only 30 mins from the resort. Do many people travel like this with 4 month olds? With my daughter, she never left the house for the first 3 months.

A healthy 4-month-old can and should travel wherever the mother and family goes. There is no need to stay in the house. I'm sure the mom would appreciate a night out with you babysitting, however.
 

Sandi Bo

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Redweek has some good articles on tax implications: https://www.redweek.com/resources/articles/timeshare-tax-deductions

Part III addresses renting (and talks about the 14 day rule (and not claiming losses) (things mentioned in this thread)).

Parenting advice? Do what makes sense for you and include consulting your pediatrician. I traveled with my babies (if I wanted to see family it was a necessity). Love the slings - it keeps people from approaching as much (people love to touch those babies in strollers). I took my 15 month old on a Disney/Bahama cruise and hindsight I would do things differently (she picked up something in the Bahamas I suspect - a nightmare ensued). Congrats on the baby :)
 

SNA27

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Redweek has some good articles on tax implications: https://www.redweek.com/resources/articles/timeshare-tax-deductions

Part III addresses renting (and talks about the 14 day rule (and not claiming losses) (things mentioned in this thread)).

Parenting advice? Do what makes sense for you and include consulting your pediatrician. I traveled with my babies (if I wanted to see family it was a necessity). Love the slings - it keeps people from approaching as much (people love to touch those babies in strollers). I took my 15 month old on a Disney/Bahama cruise and hindsight I would do things differently (she picked up something in the Bahamas I suspect - a nightmare ensued). Congrats on the baby :)

Nice article! But I am still unclear about rule distinguishing Vacation Home from a Rental. How does it work in a point-based TS covering multiple resorts?
 
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