Taxes on rental/transfer point

[dta87]

Do you have to pay income tax on rental/transfer points?

 

[ZekeKelso]

Owners who rent out their points are required to declare any money they receive as income. They also get to deduct various costs as expenses. The calculations are somewhat complex, but the net increase in tax will likely be pretty small.

Owners are also required to pay Sales Tax and Hotel/Tourist-Development taxes to Florida and Orange County.

In practice, I suspect (but have no proof) that most owners who rent out their points aren't 100% diligently will all the required taxes and reporting.

 

[Doug7856]

I read in USA Today that if you rent out your "vacation home" for fourteen days or less each year, then you do not have to pay income taxes on the income!

Here's the biggest break: If you rent your home for 14 days or less in a given year, you don't have to pay any tax on the rental income, says Bob Scharin, senior tax analyst for Thomson Reuters. You don't even have to report the income to the IRS, he says.

I was surprise to learn that. I'm sure individual states have other rules. You can read the full article here: http://www.usatoday.com/money/perfi/columnist/block/2008-05-26-vacation-homes_N.htm

 

[Caskbill]

I read in USA Today that if you rent out your "vacation home" for fourteen days or less each year, then you do not have to pay income taxes on the income!



I was surprise to learn that. I'm sure individual states have other rules. You can read the full article here: http://www.usatoday.com/money/perfi/columnist/block/2008-05-26-vacation-homes_N.htm

I believe that applies to a wholly owned vacation home, not to a timeshare. It's also based on the number of days you used the home during the year, and how many days you rented it. Obviously if you rent your timehare, you spent 0% of the year using it, and the renter spent 100% of your time.

I'm positive in this case that the 14 days tax free period is not applicable. Best to check with a tax lawyer of accountant.