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."
finance.zacks.com
Let's ask everyone who has, does or plans to rent their timeshare out, what has been your experience regarding this.
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."
Tax Breaks on Timeshares
Timeshares, which are arrangements by which you purchase the right to use a unit at a property for a period of time, remain controversial among financial advisors. On one hand, they allow you to lock in vacation property for an extended period of time at a relatively fixed cost. On the other...
finance.zacks.com
Let's ask everyone who has, does or plans to rent their timeshare out, what has been your experience regarding this.
