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reporting timeshare rental income on schedule E

preeser

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i rented my 1-week timeshare for the first time in 2019 through my home resort. i received a 1099 MISC for the income. turbotax is asking for info that is subject to interpretation. for example, if i own a 1-week fractional timeshare and i rent it for the week, am i renting 100% of my rental property for the entire year? if i only got income from 6 of 7 days, is it considered renting mu 'property' for 6/7 of the year? how is the basis computed? is there an allocation of land and improvements for a fractional ownership, or is it 100% improvements? is there a thread discussing how to report rental income for a fractional ownership of a timeshare? thanks for any pointers!
 

TheTimeTraveler

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i rented my 1-week timeshare for the first time in 2019 through my home resort. i received a 1099 MISC for the income. turbotax is asking for info that is subject to interpretation. for example, if i own a 1-week fractional timeshare and i rent it for the week, am i renting 100% of my rental property for the entire year? if i only got income from 6 of 7 days, is it considered renting mu 'property' for 6/7 of the year? how is the basis computed? is there an allocation of land and improvements for a fractional ownership, or is it 100% improvements? is there a thread discussing how to report rental income for a fractional ownership of a timeshare? thanks for any pointers!


I am not a tax expert, but I believe if you rent a vacation property for less than 14 days per year then you don't have to declare the income.



.
 

Luanne

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San Diego Country Estates
If you get a 1099 don't you have to report that income? I mean hasn't it already been reported by whoever issued the 1099.
 

RALnGA

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I am not a tax expert, but I believe if you rent a vacation property for less than 14 days

Renting one's primary house out for less than 15 days per year is NOT counted towards income. This IRS rule was written years ago so that people could rent their house out to patrons of the Masters Golf Tournament every year. Since the 1940's the Masters has been played the first full week of April in Augusta Georgia. Houses can and are rented for more than $10,000 for a week.
From IRS handbook
Rental Property / Personal Use

If you rent a dwelling unit to others that you also use as a residence, limitations may apply to the rental expenses you can deduct. You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for more than the greater of:


  1. 14 days, or
  2. 10% of the total days you rent it to others at a fair rental price.
It's possible that you'll use more than one dwelling unit as a residence during the year. For example, if you live in your main home for 11 months, your home is a dwelling unit used as a residence. If you live in your vacation home for the other 30 days of the year, your vacation home is also a dwelling unit used as a residence unless you rent your vacation home to others at a fair rental value for 300 or more days during the year in this example.


A day of personal use of a dwelling unit is any day that it's used by:


  • You or any other person who has an interest in it, unless you rent your interest to another owner as his or her main home and the other owner pays a fair rental price under a shared equity financing agreement
  • A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as his or her main home and pays a fair rental price
  • Anyone under an agreement that lets you use some other dwelling unit
  • Anyone at less than fair rental price
 

emoneybug

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Another reason to rent out on your own for cash, no tax hassle/donation to the govy
 

WVBaker

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Here's another article.


If you rent your unit out through Airbnb, here's their policy.

Airbnb’s tax reporting obligation
The US Internal Revenue Service (IRS) requires US companies that process payments, including Airbnb, to report earnings for certain users. This includes US hosts who earn over $20,000 and have 200+ transactions in a calendar year as well as non-US hosts with US-sourced income.

Thy will send you an email with your total yearly earnings. To report or not report is your choice.
 
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