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Rental income and losses for Timeshares

WVBaker

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Yes, it's that time of the year and yes, this is not always a simple question.

When presenting any question regarding timeshares and rental income and/or losses to an accountant, you may get different interpretations of the same tax laws.

Here is but one:


"Normally, the IRS requires you to file Schedule E when you have rental property. On Schedule E, you report all of your income and subtract all of your expenses. In the case of a timeshare, you'd subtract your maintenance fee, any interest that you pay, the cost of renting out your unit and depreciation on the property. If you have a profit, you'll have to pay tax on it. If you have a loss, it's unlikely that you'd be able to deduct it from your income."

"As long as you rent your timeshare out for 15 or fewer days per year, the IRS turns a blind eye to it. You won't be able to write off any rental expenses, but you won't have to report the rental income that you get either. While it's not a tax break if you lose money on the rental, it is if you can rent it out profitably. Either way, the whole transaction is tax-free, as described in the IRS' own Publication 527 on Residential Rental Property rules."



Let's ask everyone who has, does or plans to rent their timeshare out, what has been your experience regarding this.
 

SteelerGal

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Is it per timeshare?
I have to rent out 3 of our weeks due to schedule changes so that would put us at 21days.
 

CalGalTraveler

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IMO 14 days is per rental property not the total of your timeshares. If you peeform a search in TUG there is an article written by an accountant on the topic.
 

WVBaker

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IMO 14 days is per rental property not the total of your timeshares. If you do a search in TUG there is an article written by an accountant on the topic.

I hold the same opinion. This why accountants and tax prepares get paid well. In some cases that is.

Rental income and losses for Timeshares Residential Rental Property
(Including Rental of Vacation Homes)




Read it over and over and it never offers an understandable answer to the layman, which is why I think it would be interesting to see how people interpret it. :ponder:
 

emeryjre

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Are there any IRS rules or court cases that have been adjudicated over this issue.?
 

WVBaker

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Perhaps one of our resident barristers would care to jump in?
 

MULTIZ321

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Here is a previous Tug thread about Timeshare Rentals and tax issues:


And from the Tug Timeshare Advice Section, the excellent article by Tug's resident emeritus tax expert, Dave McClintock:

.


Richard
 

WVBaker

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Here is a previous Tug thread about Timeshare Rentals and tax issues:


And from the Tug Timeshare Advice Section, the excellent article by Tug's resident emeritus tax expert, Dave McClintock:

.


Richard
Thanks Richard, I reviewed them.

Neither seemed to answer the question at hand which is, what if a person rents multiple units? :ponder:
 
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