DVC time share interest

[mhawk4]

We bought DVC in May of 2010 and just received the tax information for the interest. How do you deduct the interest from your taxes? Does is matter that we rent?

I will be using Turbo Tax for the first time this year and any tips would be greatly appreciated.

 

[heynowirv]

It should'nt matter that you rent since the renters are not paying your taxes.What we have done in the past is just file it with the section of property taxes and interest paid.

 

[eljefe45]

The interest you are referring to should be considered mortgage interest I believe. If you rent your points, it is income and it should be reported as such, though I don't think anybody is going to report you to the IRS if you don't.

 

[jlewisinsyr]

You can deduct the actual tax portion paid (not what was previously estimated). If you rent, you should also be reporting your income.

EDIT: I just realize you may have meant you rent, as in an apartment/house for your primary housing. If this is the case then as the below poster mentioned you probably won't have enough deductions to itemize, so the taxes paid won't matter.

 

[Sandisw]

We bought DVC in May of 2010 and just received the tax information for the interest. How do you deduct the interest from your taxes? Does is matter that we rent?

I will be using Turbo Tax for the first time this year and any tips would be greatly appreciated.

All of this would be deducted on Schedule A. Since you rent instead of owning your own home, you may find that you don't have enough itemized deductions to benefit.

You really need to compare your situation to the standard deduction and see what works out. If you are using tax software, it will do all the calculations for you--just plug in the numbers when it asks.

I know that my SIL, before she owned a home, never had enough in expenses to make itemizing worth it.

 

[mhawk4]

All of this would be deducted on Schedule A. Since you rent instead of owning your own home, you may find that you don't have enough itemized deductions to benefit.

You really need to compare your situation to the standard deduction and see what works out. If you are using tax software, it will do all the calculations for you--just plug in the numbers when it asks.

I know that my SIL, before she owned a home, never had enough in expenses to make itemizing worth it.

Thanks, that is what I thought. I will put it in and see what happens.

Thanks!

 

[heathers4um]

this will be an interesting thing for me as well since my DBF is the name on the DVC contract and the house we live in is just mine. I am an associate on his DVC, but I still dont think I can claim the interest paid.

 

[jlewisinsyr]

this will be an interesting thing for me as well since my DBF is the name on the DVC contract and the house we live in is just mine. I am an associate on his DVC, but I still dont think I can claim the interest paid.

If your name is not on the DVC loan, then you have no claim to the interest paid.

 

[mike9950]

I would check with a CPA, or even better yet -- call the IRS for clarification. It'd be a shame to do this incorrectly for such a small amount and wind up in an audit!

Good luck!