• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

davmar1975

TUG Member
Joined
Nov 12, 2016
Messages
3
Reaction score
1
Points
113
Location
Near Kansas City, MO
Hi, I'm fairly new to TUG, so hopefully I'm not repeating another thread. We recently rented our timeshare and know we'll owe income tax on the profit. I read Dave McClintock's article 'Income Taxes and Timeshares Rental Income and Losses', which was very helpful. We've owned the timeshare for almost 20 years, so will need to base depreciation on current value.

My question: Is there an easy way (formula, etc) for determining current value? I did read one post suggesting looking for similar timeshares sold on eBay to see what they got, although that advice was for an estate situation wanting a low current value. We're the opposite, we want to value ours as high as the IRS will accept, so we can get as high a deduction as possible.

Any suggestions will be greatly appreciated!
 

cgeidl

Tug Review Crew: Rookie
TUG Member
Joined
Jun 13, 2005
Messages
1,081
Reaction score
124
Points
273
Location
Fairfield,CA
Use the price the timeshare is being sold retail today.
Hi, I'm fairly new to TUG, so hopefully I'm not repeating another thread. We recently rented our timeshare and know we'll owe income tax on the profit. I read Dave McClintock's article 'Income Taxes and Timeshares Rental Income and Losses', which was very helpful. We've owned the timeshare for almost 20 years, so will need to base depreciation on current value.

My question: Is there an easy way (formula, etc) for determining current value? I did read one post suggesting looking for similar timeshares sold on eBay to see what they got, although that advice was for an estate situation wanting a low current value. We're the opposite, we want to value ours as high as the IRS will accept, so we can get as high a deduction as possible.

Any suggestions will be greatly appreciated!


Hi, I'm fairly new to TUG, so hopefully I'm not repeating another thread. We recently rented our timeshare and know we'll owe income tax on the profit. I read Dave McClintock's article 'Income Taxes and Timeshares Rental Income and Losses', which was very helpful. We've owned the timeshare for almost 20 years, so will need to base depreciation on current value.

My question: Is there an easy way (formula, etc) for determining current value? I did read one post suggesting looking for similar timeshares sold on eBay to see what they got, although that advice was for an estate situation wanting a low current value. We're the opposite, we want to value ours as high as the IRS will accept, so we can get as high a deduction as possible.

Any suggestions will be greatly appreciated!
 

ronparise

TUG Member
Joined
Feb 10, 2011
Messages
12,664
Reaction score
2,134
Points
548
i wouldn't depreciate. Keep things simple. Money in and money out. if you profit pay the tax.

When you sell pay the capital gains tax

Introducing depreciation into the mix introduces an undo amount of complexity. (be aware that when you sell you will face recapture of the depreciation)

Talk to a tax accountant or tax lawyer before you decide how to do this

I hope I'm wrong but I think you are dreaming if you are expecting a deduction
 

Roger830

TUG Member
Joined
Dec 11, 2013
Messages
1,456
Reaction score
587
Points
323
Location
CT
I have owned rental property. Depreciaton is based on the purchase price minus the appraised value of the land.
Also, even though you elect not to take the deduction, the IRS can upon sale reduce the cost basis by the depreciation that should have been taken, then calculate your gain or loss from that reduced basis.

I have no clue how this applies to timeshares.
 

TUGBrian

Administrator
Joined
Mar 24, 2006
Messages
22,091
Reaction score
7,673
Points
1,099
Location
Florida
Top