Income from Timeshare Rental

[FriarBob]

So I used my Marriott timeshare points to reserve 6 nights at a facility in June 2023. I then could not use and put it up for rental  I received a 1099-K from Redweek the agency I used to rent the 6 nights. So on my Turbo Tax do I declare it as Real Estate Rental or Personal Property Rental Income. Can I deduct the maintainence fees associated with the points along with Redweek fees.

[DianeW777]

Yes, you can enter it as real estate rental. it would be reported on Schedule E and the expense for maintenance fees could be a deduction only for the amount of rental days divided by the total days either in the year or for the timeshare period of time you own.  You may be asked if you own the rental and you must answer 'Yes'.  Do not add any assets.

There would be no depreciation and possibly no other expenses that might apply for a timeshare.  Please update if you have more questions and we can help.

[FriarBob]

Thank you for the quick response. I own Marriott timeshare deeded weeks and vacation club points. This rental involved the use of points. So when I get to question if I own the property I say yes? I get a separate maintenance fee for all of my vacation club points so can I divide  that fee by the number of vacation club points I have to come up with a per day maintenance fee to be deducted from income.

thank you

[DianeW777 · Accepted solution]

Yes, you must say yes to move forward with the rental income.  Per IRS Publication 527: You can collect rent from property that you don't own.

• If you rent your apartment to others (or a timeshare would be similar), you can usually deduct, as a rental expense, all the maintenance fees you pay to the cooperative housing corporation (or timeshare owners).

@FriarBob 

[FriarBob]

It’s me again! I tried to process the 1099 K on timeshare rental and got completely lost trying to fill out schedule e in how it relates to my timeshare rental. Is there a process where I can get advice on a fee basis from Turbo Tax to complete schedule E. Never filled one out before. Only thing holding me from completing my filing.

Regard

Clueless Bob

[DianeW777]

It's not necessary to fill out a 1099-K (it's not really a fill-in form) for your rental income.  Simply put the income on the Schedule E,,

1. Sign into your TurboTax return
2. Search > type rentals > Click the Jump to... link
3. If you already started the rental select Edit or continue to enter the information
4. Under Income select Edit or Start > Enter your income from the 1099-K.  Keep the form in your tax file.
5. Continue to go back to the rental and scroll to find the expense categories you need 
6. See the image below.

If you still want assistance you can use either link below.

• How to get TurboTax Live (Online Only)
• TurboTax Live Full Service

@FriarBob 

                    

[FriarBob]

Still struggling with rental income from timeshare. In 2023 I used my weeks ownership to stay three weeks at my timeshare would the additional 6 days I rented out allow me to exclude that income as a vacation home exclusion.

[AmyC]

If you rented your second home for less than 14 days  it is not taxable income. A sch E is the correct form for a rental activity but if this was just a one off thing, , I would be tempted to include it under other income. It doesn't change the tax liability and simplifies things.

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description 
9. Amount, enter your amount
10. Continue

@FriarBob