Being a Timeshare Landlord

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

When you rent a time, what can you claim as expenses? I know the income would be the rental amount, but for income tax purposes what can you claim? I assume expenses would be maintenance fees, taxes if paid separate, and advertising cost. What about depreciation? If so how would that be figured if you didn't rent it all the time? Anything else?

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Very tricky subject that it best discussed with a tax professional. The IRS tends to look at timeshares more as personal property than real estate and subsequently has few tax advantages. Salespeople will tell you different, but they haven't been known as truthful.

[topcop400 Member Find all posts View Profile Close topcop400]

Salespeople will tell you different, but they haven't been known as truthful.

Someone on another forum posted that their salesperson told them they could deduct the cost of their personal trip as "inspection of rental property". Plausible because it sounds like it could be true, but it's certainly not true. The salesperson couldn't care less........it's not THEIR audit!

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

When you rent a time, what can you claim as expenses? I know the income would be the rental amount, but for income tax purposes what can you claim? I assume expenses would be maintenance fees, taxes if paid separate, and advertising cost. What about depreciation? If so how would that be figured if you didn't rent it all the time? Anything else?

Here is the link to the TUG advice page article by Dave Mcclintock on Timeshare and Taxes, which has the answers to those questions: Timeshare and Taxes.

Note that while you must report (and are taxed on) net income if you made a profit, you are effectively prohibited from deducting a loss.