Time share purchase

[Newbie5]

can we deduct interest on our purchase? what about down paymwnt

[bwa · Accepted solution]

The down payment is not deductible.

Mortgage interest on a personal, vacation timeshare is deductible. However, mortgage interest is interest secured by an interest in the property. Much timeshare debt is consumer interest, not mortgage interest, and would not be deductible. Several examples:

• The interest on many loans provided by timeshare developers would not be deductible, as they are often not secured by the deeded weeks.
• If your timeshare interest is a long-term lease (a Right-to-Use or "RTU" timeshare), interest on a loan secured by that week will normally not be deductible. Generally, right to use and non-deeded points timeshares are tangible property, and the interest would not be deductible.

You need to check your documents for the security interest in the timeshare.

If deductible, it is deducted as mortgage interest on schedule A. See this Turbotax FAQ