Timeshare Vacation Rentals

[4Browns]

I used vacation club points to book nights at several resorts that were rented to help offset maintenance fees. The two companies that facilitated these rentals used different types of 1099’s to report the income (a 1099-K and a 1099-MISC). While researching how to report this income using TurboTax Premier, I’ve found a range of recommendations. These include: (1) reporting using “1099-MISC and Other Common Income” topic of Wages & Income; (2) reporting using “Rental Properties and Royalties” topic and completing a Schedule E; (3) report using “Less Common Income” topic and reporting either as Miscellaneous Income-Hobby Income or Miscellaneous Income – Income from Renting out Personal Property). While any of these methods might be suitable, is there a reporting method that you recommend using because it both satisfies IRS reporting requirements and is simplest to use?

[RobertB4444]

Simplest to use - and the methos I would use - is just reporting it as 'Other Income' on line 8 of schedule 1.  

In TurboTax that involves scrolling all the way to the bottom of the wages and income section to 'Less Common Income', clicking on 'Miscellaneous Income' and then 'Other Reportable Income'.  You can enter a description there of 'Vacation Club Points' or something and then you can enter each of the two forms.  Since neither of these were self-employment income or income from renting property that is the best way to enter it.

@4Browns 

[4Browns]

Thanks for the response! I assume this would eliminate the need for any entries regarding the 1099-K & 1099-MISC. One follow-up question, please - how / where would the expenses associated with the points rental (e.g., maintenance fees paid for the points, listing fees paid to the web site marketing the nights for rent)?

[DianeW777]

Yes, you would eliminate the need to enter the forms. In this type of entry there is no deductions for expenses. 

If you choose to enter it as rental income and you actively participate then you would be allowed expenses for only the portion that would apply to the rental days vs the entire year. And any direct marketing specifically for the rental of the timeshare.

@4Browns