Renting Points and Taxes

[DOOGIERUNNER]

If we rent points, I assume we need to pay income taxes on the rental? Can any of our dues besides the property taxes be used as a deduction or credited as an expense?

 

[mikesmom]

You can rent up to 14 days before it has to be reported to the IRS or becomes a taxable event.
DH is a tax professor. He'll be sending you a bill in the morning.

 

[Doctor P]

Answer is not that simple. Consult your tax advisor about your personal situation (and, FWIW, I am a tax professor, too, but you can consider this my Christmas present to you, so no bill ).

 

[Dean]

I am not a tax professional but it is unlikely one can meet the rules to get the free 2 weeks of rental using a timeshare. I do include any rentals I do in taxes but usually have enough expenses to wipe out most of the gains. I think few people besides me even include it in their taxes. I know when I first mentioned it to my tax guy, he said no to even worry about it. But I insisted though if it'd been a one time deal I would have just let it slide.

 

[Doctor P]

I am not a tax professional but it is unlikely one can meet the rules to get the free 2 weeks of rental using a timeshare.

That is part of the complexity I was referring to. This is not an easy area of the tax law, and it's one that even many tax professionals don't deal with very often. There are also exceptions to the 14 days based on your personal use or the use of nonowners whom you do not charge rent.