Timeshare Rental Income and expenses for 'point' system Timeshares

[krupuk65]

I paid $6,000, supposedly legal/administration fees, to exit my 'point system' timeshare in Feb 2019! As part of the contract I authorized the Timeshare Exit Team to rent out my unit to bring the balance of my 23,000 points to 'zero'.  The total of rents collected from my timeshare during February 2019 thru July 2019 was $3,400, units rented for a total of 64 days.  The exit company sent me a 2019 1099-MISC for rental income (it states 'rental income' on the 1099) for $3,400 which I know that I have to report as rental income and pay federal and state taxes.  The question is since I did rent my timeshare units for the 64 days in 2019, (I haven't rented my timeshare in any past years since I bought it in 1998), can I take any expenses such as my maintenance fees or maybe some of the legal/administration fees as expenses to offset this rental income?

[JulieS]

Yes, since you have to report your rental income, you can take the related expenses. That includes maintenance fees, property taxes, etc.

Be sure to answer the questions in TurboTax about personal use and days rented. 

[Miss Cindy]

Where do I report Timeshare expenses?

[BP25]

I have 14800 points in a vacation club and rented a week for the first time.  How do I answer the questions in Turbo tax regarding use.  I can "rent" with my points at hundreds of resorts and may never go back again.  "My" time share doesn't seem tot fit your questionnaire.  How should I address the particular resort I rented out, or should I refer to it as "points".

Help!

I should mention that my listing agent does not issue 1099 forms, and my proceeds after deducting maintenance fees and taxes is less than $200.

[Cynthiad66]

Normally, the IRS requires you to file Schedule E when you have rental property. On Schedule E, you report all of your income and subtract all of your expenses. In the case of a timeshare, you'd subtract your maintenance fee, any interest that you pay, the cost of renting out your unit and depreciation on the property.  Include your net profit of $200.00 as other income.

Here's how to include other income:

To enter as Other Income, here are the steps:

1. Sign in to your account, select Pick up where you left off.
2. To the right upper corner, in the search box, type in "other reportable income" and Enter.
3. Select Jump to other reportable income.
4. Next screen, Other Wages Received, select No to continu

[dccolorado]

The "property" in question is a "points based" timeshare which means that the taxpayer doesn't actually own property or real estate of any kind, more like a right-to-use contract.  Below you mentioned that a depreciation deduction could be taken but not sure how that would be allowed if they don't own property/real estate.  So can they deduct a portion of their upfront cost of the contract, and if so, how is this shown on the return - as depreciation or what?

[Critter-3]

You have nothing to depreciate since you don't own the underlying property ... you only have points.  So if you buy points that is your cost  and if you "sell or rent" them then the profit is the income - the cost.