The down payment is not deductible.
Mortgage
interest on a personal, vacation timeshare is deductible. However, mortgage
interest is interest secured by an interest in the property. Much timeshare
debt is consumer interest, not mortgage interest, and would not be deductible.
Several examples:
- The
interest on many loans provided by timeshare developers would not be
deductible, as they are often not secured by the deeded weeks.
- If your
timeshare interest is a long-term lease (a Right-to-Use or "RTU"
timeshare), interest on a loan secured by that week will normally not be
deductible. Generally, right to use and non-deeded points timeshares are
tangible property, and the interest would not be deductible.
You
need to check your documents for the security interest in the timeshare.
If
deductible, it is deducted as mortgage interest on schedule A. See this Turbotax FAQ
