HOW DO WE HANDLE A 1099-MISC FOR RENTING A TIMESHARE UNIT FOR A WEEK?

[wlong619]

I RECEIVED $ 1392.00 FOR RENTING MY TIMESHARE WEEK. WHAT DO I OWE?

[ColeenD3]

There is no way to know how much you owe on one form of income. All your income gets added together. Look at your tax amount before and after entering the income to see how much you are taxed on the income.

The IRS says that if you rent out your house for 14 days or fewer during the year, you don't have to report the rental income on your tax return. 

However, that rule would treat your timeshare as a vacation home only if you personally use it for at least 15 days during the year in addition to the days it is rented.

If you don't meet both 15-day rules, the income is taxable. This means that you must own a timeshare a minimum of three weeks at a single resort, with at least 15 days used personally.

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 your timeshare.

[pep17]

rented 2 weeks of time share but stayed the other 13 weeks. when I enter my 1099misc it takes a large sum off 

federal refund. can I do anything to off set

[BillM223]

What is the 1099-MISC for? Did you rent the time share for two weeks, so you stayed there a total of 15 weeks? Was the 1099-MISC for imputed income because you got to stay at someone else's time share for 13 weeks for free?

[evieiowan]

we didn't use it at all during 2024

There are commission and travel agency fees shown on our income statement from the timeshare.  Do those come off the income shown on the 1099?

[PatriciaV]

Most timeshare properties are rented for less than 15 days per year. If that applies to your situation, see IRS Publication 527 Residential Rental Property (Including Rental of Vacation Homes):

Used as a home but rented less than 15 days. If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). You are not required to report the rental income and rental expenses from this activity. The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses.

Note that you can claim mortgage interest and property taxes as itemized deductions (if you qualify to itemize) for this property as a "second home."

See also: IRS Topic 415- Renting Residential and Vacation Property

@evieiowan