turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

lauram55
Returning Member

I am aware that when you buy a timeshare, that taxes and interests on mortgage loans can be written off on our taxes. However, if we pulled money out from a deferred compensation retirement fund can the purchase be written off on our taxes too.

 
3 Replies

I am aware that when you buy a timeshare, that taxes and interests on mortgage loans can be written off on our taxes. However, if we pulled money out from a deferred compensation retirement fund can the purchase be written off on our taxes too.

The retirement distribution is taxable and a 10% early withdrawal penalty if you are under 59 1/2.  So probably don't do that.  Doesn't matter what you use the retirement funds for.   And you can never write off the whole purchase price.  

I am aware that when you buy a timeshare, that taxes and interests on mortgage loans can be written off on our taxes. However, if we pulled money out from a deferred compensation retirement fund can the purchase be written off on our taxes too.

TIME SHARE

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/deduct-mortgage-i...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

I am aware that when you buy a timeshare, that taxes and interests on mortgage loans can be written off on our taxes. However, if we pulled money out from a deferred compensation retirement fund can the purchase be written off on our taxes too.

You can deduct property taxes on property that you own, if the taxes are assessed against you. Depending on how the timeshare is organized, if you are the owner of a share of a company, or if you are the owner of a right to use property, but the taxes are not actually assessed against you, they may not count as deductible property taxes. You may need legal assistance to review your contract or deed.

Mortgage interest is only deductible if the loan is secured against the property itself, so that you could lose the property if you stopped making payments. The loan must be “perfected“, this usually means that it must be recorded with the county clerks office. Again, a loan from the timeshare company may or may not count as a mortgage. And if you borrow any other money to buy a timeshare, such as a personal loan, credit cards, or borrowing from an investment fund, that is definitely not a deductible mortgage. 

There are no special tax breaks to be had when you withdraw money from an investment account, a pension, an IRA, or anything else, no matter what you do with the money after. You withdraw the money and pay the taxes. Then, anything else that you do with the money is separate.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v