I believe that I do need to report the rent as income. I've read that the rule would treat my timeshare as a vacation home only if I personally use it for at least 15 days during the year in addition to the days it is rented.
If I do not meet both 15-day rules, the income is taxable. This means that I must own a timeshare a minimum of three weeks at a single resort, with at least 15 days used personally.
My timeshare is for 7 days, therefore, I fail the rule and must report the income.
I believe that this will be reported in TurboTax as Rental Income on Schedule E. Deductions allowed include annual maintenance fee, advertising, rental commission, depreciation, property taxes (if you pay them separately from the maintenance fees) and interest on the timeshare.
Concerning the depreciation calculation, Turbotax calculates the amount a bit differently depending upon which way I enter the info. If I enter through the "Property Profile" I get one depreciation value based on the purchase date. If I review and update the "Assets/ Depreciation" section, I get a lower depreciation number when I enter the "rental start date" (which is different from the purchase date). My thought is to go with the lower depreciation amount. Seems correct and is conservative.
