Do I pay taxes on points rented

[Tigger2ntinkerbell]

If you've made less than 2,000??
We have no deductions, so we're not sure if we should add this in our taxes this year.
Never received a 1099(?) from dvcrequest or PayPal.

 

[_auroraborealis_]

Yes. It is income.

 

[Tigger2ntinkerbell]

How, I have no paperwork from PayPal or dvcrequest.
Just the contract from dvcrequest.

 

[Marionnette]

How, I have no paperwork from PayPal or dvcrequest.
Just the contract from dvcrequest.

You declare it as misc income. You don't need a 1099 to include it in your tax return.

 

[_auroraborealis_]

Per the IRS, it's still income even without a 1099 or similar, and there is no minimum amount that can be excluded from taxable income.

You can reduce the income by qualified expenses.

David's doesn't send 1099s. They're Canadian. Doesn't make it not income.

 

[tidefan]

Actually, you would only need to declare the amount over the value of what you paid for the points (initial cost per point + maintenance fees - probably in the $7/8ish per point range, though that will vary based on many factors). That is your income (the total is your revenue), otherwise you’re being taxed on someone else’s vacation...

 

[bobbiwoz]

I did a search on rental income regarding timeshares, and got this information..from Redweek.com


A: In almost every situation, you are required to report the income on your tax return. The salesperson was undoubtedly referring to the "vacation home" tax rules, which allow you to exclude the rental income if you rent the "home" out for less than 15 days in the year. However, that rule would treat your timeshare as a vacation home for the year only if you and friends and relatives personally use it for at least 15 days during the year in addition to the days it is rented.

If you don't meet both of the 15-day rules (and some other rules that are less likely to apply to timeshares), the income is taxable, just as other income you receive is. In order to have a chance at meeting the rules, an individual must own a minimum of three weeks at a single resort, with at least 15 days used for personal purposes.

 

[tidefan]

I did a search on rental income regarding timeshares, and got this information..from Redweek.com


A: In almost every situation, you are required to report the income on your tax return. The salesperson was undoubtedly referring to the "vacation home" tax rules, which allow you to exclude the rental income if you rent the "home" out for less than 15 days in the year. However, that rule would treat your timeshare as a vacation home for the year only if you and friends and relatives personally use it for at least 15 days during the year in addition to the days it is rented.

If you don't meet both of the 15-day rules (and some other rules that are less likely to apply to timeshares), the income is taxable, just as other income you receive is. In order to have a chance at meeting the rules, an individual must own a minimum of three weeks at a single resort, with at least 15 days used for personal purposes.

Income yes, but you still get to deduct your expenses from Revenue...Otherwise, some of that would have been taxed twice...

 

[wdrl]

Separate and apart from taxes on rental income is Florida's Sales and Use Tax on Rental Income of Living or Sleeping Accommodations. This is a use tax, meaning that it is levied on all transactions that are subject to the tax. The State of Florida's sales tax is 6% and several counties, including Orange County, have a discretionary sales surtax, local option tax, tourist development tax, convention development tax, or tourist impact tax on rentals of transient accommodations in addition to the State's sales tax.

More information can be found in the Florida Department of Revenue Discretionary Sales Surtax brochure (Form GT-800019) and on the list of surtax counties and rates (Form DR-15DSS). You can find these and other publications www.myflorida.com/dor. For specific county rates, go to the Tax Law Library and do a search for “DOR Local Option.”

I strongly urge that you talk to a tax consultant or attorney to determine your liability.

 

[Tigger2ntinkerbell]

Ok, not sure what wdrl was talking about. I'm a Michgan resident.
First rental totaled $1,599.00(123 pts) at $13.00 pp.
Second rental totaled $182.00(14 pts) at $13.00
Grand total:$1,781.00

We dont file long form if that matters.

 

[Tigger2ntinkerbell]

No going to rent out my points to dvcrequest again, great people but too many hoops to jump though for taxes.
I will how ever go on fb and list them there if I need to. Or just bank them.
Thanks all, but I'm more confused than before.

 

[Marionnette]

No going to rent out my points to dvcrequest again, great people but too many hoops to jump though for taxes.
I will how ever go on fb and list them there if I need to. Or just bank them.
Thanks all, but I'm more confused than before.

You still need to declare the income on your taxes. It doesn’t matter whether you received a 1099 from the rental agency or if you did the rental privately on FB. I know, it’s not what you want to hear, especially if you normally use the short form to file. We own a small business (LLC) and then we have our own personal taxes to pay, including income from a rental property. We have to use an accountant to keep it all straight. He gets paid the same fee whether we rented our points out that year or not. For someone who normally does their own taxes, trying to decipher everything can be confusing.

 

[smiths02]

Actually, you would only need to declare the amount over the value of what you paid for the points (initial cost per point + maintenance fees - probably in the $7/8ish per point range, though that will vary based on many factors). That is your income (the total is your revenue), otherwise you’re being taxed on someone else’s vacation...

You would be able to count buy-in cost?
I would think you would only be able to count maintenence fees and interest (if you have a loan).

 

[Tigger2ntinkerbell]

You still need to declare the income on your taxes. It doesn’t matter whether you received a 1099 from the rental agency or if you did the rental privately on FB. I know, it’s not what you want to hear, especially if you normally use the short form to file. We own a small business (LLC) and then we have our own personal taxes to pay, including income from a rental property. We have to use an accountant to keep it all straight. He gets paid the same fee whether we rented our points out that year or not. For someone who normally does their own taxes, trying to decipher everything can be confusing.

No, it doesn't upset me that we would have to pay any tax on the money we received .
Its just not understanding the forms. it boggles the mind

Went to Walmart and asked the question about it and he had know idea how to apply it on our taxes.
So we have a business in town where we live that are tax accounts/Filers, and we'll go file with them. Just wanting to get this done and over with.

Thanks guy for the help

 

[Tigger2ntinkerbell]

You would be able to count buy-in cost?
I would think you would only be able to count maintenance fees and interest (if you have a loan).

Have 4 contracts and a loan on each.
Can't remember what the buy-in cost was on each contract(have it on each folder-somewhere).
I have printed off the 2018 maintenance fee and taxes.

 

[Marionnette]

No, it doesn't upset me that we would have to pay any tax on the money we received .
Its just not understanding the forms. it boggles the mind

Went to Walmart and asked the question about it and he had know idea how to apply it on our taxes.
So we have a business in town where we live that are tax accounts/Filers, and we'll go file with them. Just wanting to get this done and over with.

Thanks guy for the help

I didn't mean to imply that you were upset about paying. I meant that it's annoying that you can't use the short form for this. That means paying an accountant to file for you in a lot of cases. Since we pay one to do our taxes anyway, it's not a big deal but I wouldn't be happy to have to ante up money to complete a tax form when I made so very little from renting (just over $700 in 2018).

 

[Tigger2ntinkerbell]

I didn't mean to imply that you were upset about paying. I meant that it's annoying that you can't use the short form for this. That means paying an accountant to file for you in a lot of cases. Since we pay one to do our taxes anyway, it's not a big deal but I wouldn't be happy to have to ante up money to complete a tax form when I made so very little from renting (just over $700 in 2018).

Yes, its annoying . My husband and I decided that we won't rent out our points we'll just bank them forward from now on, just less hassle.
I know the tax account pretty good so he'll let me know what it will cost.
And the new tax forms are going to take some getting use to for some people.

Like I said before it's a pain .

 

[orion2185]

I''m not certain if I would take tax advice from a public form. Always speak to your account about any matters. However, you would be getting "income" from the rented points and need to account for that accordingly to your tax

 

[chalee94]

You would be able to count buy-in cost?
I would think you would only be able to count maintenence fees and interest (if you have a loan).

I would not think you could deduct your buy in or depreciate it unless you were not using it personally but only as a rental property.

But I would not take tax advice from an Internet forum either.

 

[Deb & Bill]

If you use TurboTax, it's Misc Income and it takes you through all the steps. Enter the money made, subtract your costs (annual fees, booking charges, etc). I had a 1099Misc from Hilton for renting out my week at my other timeshare. It showed me full price rental cost and I subtracted the costs to rent it and the annual fees for maintenance. It was a wash on that week. But if you are renting out lots of points, it might not be a wash.