Taxes And Timeshares

Corky · Feb 9, 2009

At a presentation, a salesman told me that if you own more than one week at the same resort, you can claim the maintenance fees on your taxes.

Does anyone know if this is true?

Thanks.

gorevs9 · Feb 9, 2009

Corky said:
At a presentation, a salesman told me that if you own more than one week at the same resort, you can claim the maintenance fees on your taxes.

Does anyone know if this is true?

Thanks.

Sounds fishy to me though I believe you can claim any part of your MF that is allocated to property tax.

Dave M · Feb 9, 2009

Yes, that statement is absolutely false. Except for the property taxes (if paid separately or stated separately on your MF bill), none of the MF is deductible, no matter how many timeshares you own. It's a personal expense related to the upkeep of residential property (the timeshare) used for personal purposes, in the same way that utilities, repairs and other upkeep expenditures for your home are not deductible.

An exception would be if you rent your timeshare to others. In that case, all of your expenses related to the timeshare (e.g., property tax, fees, advertising and interest expense - even if on a non-mortgage loan) are deductible to offset the rental income.

For more on the subject of timeshares and income taxes, see the tax article in the TUG Advice section.

Corky · Feb 9, 2009

Thanks so much for the responses.

Dave, thanks for the lesson on taxes and timeshares. I look forward to reading the article you suggested.

Another lie from those presentation salesmen.

MuranoJo · Feb 9, 2009

Dave M said:
Yes, that statement is absolutely false. Except for the property taxes (if paid separately or stated separately on your MF bill), none of the MF is deductible, no matter how many timeshares you own. It's a personal expense related to the upkeep of residential property (the timeshare) used for personal purposes, in the same way that utilities, repairs and other upkeep expenditures for your home are not deductible.

An exception would be if you rent your timeshare to others. In that case, all of your expenses related to the timeshare (e.g., property tax, fees, advertising and interest expense - even if on a non-mortgage loan) are deductible to offset the rental income.

For more on the subject of timeshares and income taxes, see the tax article in the TUG Advice section.

Dave, any special guidelines for 'owners' of RTU weeks they rent?

Dave M · Feb 9, 2009

Same answer. Expenses incurred in connection with the ownership and renting are deductible in offsetting rent. There are loss limitations, as outlined in the linked article.

Taxes And Timeshares

Corky

gorevs9

Dave M

Corky

MuranoJo

Dave M