Paying taxes on rental income--updated 7/2022

[wishicouldgomoreofte]

How are you all doing that?
Do you just subtract the dues from the rental amount you received, and report the balance as misc. income?
Where do you put it on your form?
(I am not asking for 2020 taxes. I already filed. I am asking for 2021 taxes)

 

[Eldon32]

Some reading about Florida taxes on rentals: https://floridarevenue.com/Forms_library/current/gt800034.pdf

 

[Chuck S]

I think the OP is talking about US Federal Income Tax

 

[FinallyFL]

I used form 8582 to report my rental income in 2019.

 

[lovin'fl]

Nevermind

 

[MarcIsMe]

Schedule E together with Form 8582.

 

[wishicouldgomoreofte]

Schedule E together with Form 8582.

Why would I use Form 8582? I did not experience a loss. I am asking about renting a few extra points about every other year. For this year, 2022, my rental income is only $1,232.00. I want to deduct what I legally can. I can deduct my dues, and I have seen people talk about the cost of buying your contract----price/available years left when purchased.
Would that be reported as depreciation? I probably will have to use Schedule E. In the old days, I think it could be written as PPR (Personal Property Rental) and deduct PPRE (Expense related to personal property rental), but tax law changes and form changes have eliminated that simple way. I am not in the business of renting. It is a casual, infrequent thing, so a lot of the IRS rules & regulations set up for business people really don't fit my situation. Nevertheless, I do make a small profit.

 

[wishicouldgomoreofte]

I used form 8582 to report my rental income in 2019.

So you reported a loss on your rental income?

 

[wishicouldgomoreofte]

Well, I think I found it! On Form 1040 Schedule 1 line 8k, report the income, and deductions on 24b of Form 1040 Schedule 1.
Well, at least that is where I would like to report it, because it is so simple. But a timeshare point rental probably does not fit the "personal property" category.

 

[wishicouldgomoreofte]

I also found this.
Personal use property is a type of asset or other property that an individual does not use for business purposes or as an investment. Quite simply, individuals use personal use property primarily for their individual purposes and for their own enjoyment.

That certainly describes my DVC points.

 

[MarcIsMe]

Form 8582 is used for to determine if you can deduct a passive loss and to keep a record of those losses if they are non-deductible. It is not necessary in a gain situation but many software programs will automatically generate the form regardless of the situation. The difference between using Schedule 1 for personal property and Schedule E for real property lies in the characteristic of the timeshare. If the timeshare has a deeded interest, you own a portion of the property, it is real property - you can bequest it to your heirs, etc. If the timeshare is not deeded, instead you own points in an entity that owns the property and have no ownership interest in the underlying real estate, then it is personal property.

 

[wishicouldgomoreofte]

Form 8582 is used for to determine if you can deduct a passive loss and to keep a record of those losses if they are non-deductible. It is not necessary in a gain situation but many software programs will automatically generate the form regardless of the situation. The difference between using Schedule 1 for personal property and Schedule E for real property lies in the characteristic of the timeshare. If the timeshare has a deeded interest, you own a portion of the property, it is real property - you can bequest it to your heirs, etc. If the timeshare is not deeded, instead you own points in an entity that owns the property and have no ownership interest in the underlying real estate, then it is personal property.

Thank you for that reply and explanation. It sounds like DVC falls on both sides of that. I think it is deeded, although we as owners don't have copies of the deed to prove our ownership. And we don't own the underlying real estate. I think, but may be wrong, DVD does not own it either, but leases the land from whatever Disney entity or corporation owns the land. I do think DVD owns the buildings, but maybe not.

 

[CarolMN]

DVC Members have a deeded interest in a LEASE. We have (or can eaaily get) a copy of that deed. It was provided at purchase along with other documents.

 

[wnielsen1]

Thank you for that reply and explanation. It sounds like DVC falls on both sides of that. I think it is deeded, although we as owners don't have copies of the deed to prove our ownership. And we don't own the underlying real estate. I think, but may be wrong, DVD does not own it either, but leases the land from whatever Disney entity or corporation owns the land. I do think DVD owns the buildings, but maybe not.

The fact that it is leased doesn't matter. It's real property and reported on Schedule E.

 

[Brian Noble]

This is a couple decades old, but the rules around these things don't change that fast. (And it was my impression that it is Schedule E as well.)

https://tug2.net/timeshare_advice/income_taxes_and_timeshares_from_an_accountant.html

 

[wishicouldgomoreofte]

The fact that it is leased doesn't matter. It's real property and reported on Schedule E.

OK. Thank you.

 

[wishicouldgomoreofte]

This is a couple decades old, but the rules around these things don't change that fast. (And it was my impression that it is Schedule E as well.)

https://tug2.net/timeshare_advice/income_taxes_and_timeshares_from_an_accountant.html

Thank you, Brian.

 

[wishicouldgomoreofte]

DVC Members have a deeded interest in a LEASE. We have (or can eaaily get) a copy of that deed. It was provided at purchase along with other documents.

Thank you, Carol.