Tax question?

[hrsmom]

We are considering buying and my DH is curious how this is viewed on your taxes. They told us we'd get a 1098, is this a write-off or something else? TIA!

 

[OKW Lover]

This really depends on your tax situation. There are a couple of things that MAY be deductible for you; Interest on your loan and property taxes, but only if you itemize deductions AND meet other qualifications. You need to check with your tax professional to find out if this applies to you.

 

[salmoneous]

In the context of timeshares, a 1098 is usually a report of mortgage interest. If you finance your purchase, the interest on your loan may be deductable, depending upon what type of loan you get.

Whether or not you finance, a portion of your maintence fee goes to pay real estate taxes and is deductibe. It's not a lot of money - nothing that would sway your decision one way or the other. But even saving a few bucks in taxes is always nice.

Those are the main tax issues for most people. Others will also have issues if they rent their timeshare, or sell it for a profit.

 

[Caskbill]

Mortgate interest deductions only apply if you itemize.

Mortgage deduction may be deductible. I'm not current, but in the past there was a limit on how many different things could be included. Example, you might have a home mortgage, home equity loan, vacation cabin somewhere, RV loan, Boat loan, one or more Timeshare payments, all at one time. You could not deduct the interest payments for all of them.

I think the limit was two, so a primary mortgage plus one other.

You need to verify with your tax advisor or the IRS.

Unless it's changed, the rule for RV or boat interest deductions were only allowed if the RV or boat was fully self contained, meaning it had sleeping, cooking, and bathroom facilities.