filing taxes after renting points

[czmom]

We file our own taxes, and it’s usually fairly simple. Last year we rented our dvc points through a well known company. Because of this, we received a tax statement on miscellaneous income. Can someone who has done before this please help me? If we claim this income (and obviously we will), it actually makes it not worth renting due to the taxes we have to pay. I’m a little confused.

 

[StitchesGr8Fan]

It’s income and you have to claim it. We paid about 1/5 of the income in taxes. So we still came out ahead.

 

[Bellecruiser]

So I rented out some of our points...we received most of the cash last year but the rental is this spring. I did not receive a tax statement from the company we rented through. I was just planning to show it as income from a rental. Is that correct?

 

[Mickey of the Villages]

You should be able to deduct several different expenses from the income you received from the rental. For example, you should be able to deduct the maintenance fees for the points you rented. Also, you should be able to deduct depreciation as well as any interest you may pay (if financing) for the points. You may deduct the brokers fee and other expenses that you may identify related to creating that income.

 

[MICKIMINI]

I just filed and put the four rentals we had in "miscellaneous income". I didn't get a 1099 but I have the rental agreements and bank deposits. I took the standard deduction and didn't even try to itemize. I used an online tax service and it figured out the taxes - easy.

 

[CraigInPA]

You can definitely subtract the maintenance fees on the income. If you paid any other fees, such as a listing fee or a rebate to the renter or a gift card for the renter, those would also be deductible.

Be careful subtracting depreciation. There are special rules regarding income producing time shares.

Tax advice on an internet forum is not worth what you paid for it. Consult a professional.

 

[TraderSamWDW]

Did u use the internet and or phone to rent it out?
At the very least the dues are deductible. You only pay income tax on the profit

 

[Maistre Gracey]

Did u use the internet and or phone to rent it out?
At the very least the dues are deductible. You only pay income tax on the profit

I never rented out my points, so I’m a novice for sure. That said, I did look into it some years back. I was told not *all* mtc fees are deductible. I was told depreciation no if capital expenses were included in fees. Was also told the safest way to go is only deduct the real estate taxes.

Again, I know very little about this. Only relaying what I was told by one tax guy.