Tax implications on income from renting

[Krazy]

DVC does not allow that, the IRS could care less.

 

[salmoneous]

I am very much under the impression that 1-2 times a year a husband and wife could fly to Orlando to "check" on the timeshare, and deduct the cost of air fare, the DDP, air port parking, and other expenses.

Where exactly on their tax form do you think they are going to put this deduction unless they are filing as a business?

 

[Krazy]

Where exactly on their tax form do you think they are going to put this deduction unless they are filing as a business?

The same place a person who has a rental home would put the info on their tax return.

 

[Doctor P]

I am very much under the impression that 1-2 times a year a husband and wife could fly to Orlando to "check" on the timeshare, and deduct the cost of air fare, the DDP, air port parking, and other expenses. They may not be able to deduct the full cost of the DDP or the parking if they stayed more than a few days, but the air fare would be deductable. Now if they go to the Orlando area to look for other Time shares to invest in, and that takes a week or so to research, I am cerratin they could deduct all the cost of staying in Orlando for a week.

Most reputable tax advisors would disagree with almost every statement made in this post. Many of the statements border on urban legend, in fact. The rules for trips to "check" on the timeshare are much stricter than your post suggests, though you will see this same argument made over and over. Again, one should consult a reputable and knowledgeable tax advisor who can assess one's individual situation.

 

[Tony P. IL.]

Here is a couple of answers I got back in August 2006.

Renting your points is revenue not income.

Income
= Revenues(rental price) - Expenses (Maintenance fees and interest)

But only on the portion of points you rented

SSR Example 100 points rented @ $10/point
Everything Hypothetical
Revenue (amount points rented for) $1,000.00
Expenses Taxes $(50.00) + Int. $(275.00) Maintenance fees $(600.00)= $(925.00)
Income from the rental $75.00

Under most circumstances you would need to report in detail the rental income and expenses on page 1 of schedule E on your personal tax return. Under certain situations you may not be able to deduct the loss depending on your situation. You should consult a tax advisor. If you are one of those people that bought points and resold the points a case could be made that they would get reported differently so check with your tax advisor.

 

[Scotch]

Most reputable tax advisors would disagree with almost every statement made in [Krazy's] post. Many of the statements border on urban legend, in fact. The rules for trips to "check" on the timeshare are much stricter than your post suggests, though you will see this same argument made over and over. Again, one should consult a reputable and knowledgeable tax advisor who can assess one's individual situation.

Yes. See, e.g., post #2 on this TUG (Timeshare User's Group) thread.