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fdedios
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I purchase a timeshare this year, Aug 2023. How do I start filing taxes for it?

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I purchase a timeshare this year, Aug 2023. How do I start filing taxes for it?

What do you think you can file?

 

You can deduct real property taxes that you pay on property you own in the US, up to a limit of $10,000 for all state and local taxes.  However, the taxes must be assessed against the owner of the property, and it is not clear to me that you are an owner of real property (land, real estate) or if you are an owner of a right to use certain property.  So any property taxes that are part of your annual assessments may or may not be deductible, and you may need to have the timeshare documents reviewed by a tax professional.

 

You can deduct mortgage interest you pay on your main home plus one second home, up to a combined indebtedness of $750,000.  But the mortgage must be secured by a lien on the property, that is, the mortgage lender can take the property if you don't pay.  Again here, it is not clear to me that you have a real mortgage, or a loan from the time share corporation that gives you the right to certain points.  You may need to show the time share documents to a tax professional to see if you can deduct the mortgage interest.

 

What else do you think you need to report?

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