We are owners of a 1 week timeshare interest in a condo community near Fort Myers, Florida that was basically demolished by Hurricane Ian in 2022. The owners' association voted to borrow money and rebuild, but the property was unavailable for all of 2023 (and all of 2024 also) while the reconstruction is underway. In prior years, we have rented the week and reported the net amount of proceeds in Schedule E. For 2023 and 2024, there were management fees and prorated taxes that we had to pay. When I completed the Q&A for this week in Schedule E, the response from TT was that we could not report the expenses since our week had not been available for rental or personal use in 2023. Are we able, and if so, how do we report the out of pocket expenses on this timeshare week that could not be used or rented? There is a recent exchange in this Help Community concerning a similar situation with a fully-owned property that had been rented occasionally, but the responses do not address our situation since we do not control decision-making or own the unit.
The condo could be your second home. You can claim property tax and mortgage interest along with your main home on Sch A. HOA and other expenses are not deductible on a main or second home.
You do not have rental property during this construction period. If you suffered a financial loss, you might be able to claim a casualty loss. See Topic No. 515 Casualty, Disaster, and Theft Losses - Internal Revenue Service
When you are renting out your home, if it is less than 2 weeks, the rental income does not have to be reported unless you receive a tax form. See Topic no. 415, Renting residential and vacation property