Timeshare Rental Income

Hello,

I was unable to use my timeshare this year, so I rented it.  I'm not sure how I report the income and if I get to deduct any expenses.  I only own 1 week for the year and rented the entire week.  The rental income was less than what I pay for maintenance, so I'm hoping I get to deduct expenses. Any tips?  I was looking at schedule E, but it's really confusing.

Thanks!

Kathy
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    Income goes on Schedule E as rental income.  Your expenses go on the apllicable lines on Schedule E.
    • Thanks SuzyQuzy!  I tried using Sched E and having TT guide me.  I am getting confused with all of the questions.  I assume it's a Vacation Property.  I have a fractional ownership of 1 week.  I rented it for the entire week.  So did I rent it for the entire year or partial?  Is my ownership 100% or partial?  Then it starts asking questions about purchase price, receipts for improvements etc.  I've owned the timeshare for several years and paid maintenance fees every year.  I guess I don't know why I need all of these numbers.  I rented it for less than what I pay for annual maintenancem so this seems like overkill.
    • I tried calling the IRS to ask but I got lost in the menus!  At this point I think it would have been easier to just leave the TS vacant for a week!
    • You are correct it is overkill.  Yes it is a vacation property.  I would use 100% ownership and days rented of 7.  Can you skip the purchase price/improvements questions?  Or answer zero? These questions are getting at depreciation and you do not have a depreciable interest.
    • Thanks Suzy, I will try that.  :)
    • Can you claim the fees paid in the year you rented it as expenses?  It would be treating it like a rental property, which essentially it is that year.
    • Yes if you report the income you can deduct any related expense
    • From the IRS Publication 925:  Almost all the time, Time share rental activity is a PASSIVE Trade or Business activity and NOT repeat NOT a Rental Activity:

        From IRS Publication 925:  Exceptions.   Your activity is not a rental activity if any of the following apply.

      1.The average period of customer use of the property is 7 days or less.

      Since there are 2 choices (according to Publication 925) and it is not a rental Activity (one of the choices) - then it must be a Trade or Business Activity - and as such it will be under Schedule E.

      TUG (Timeshare Users Group) has some good information on this.   You can off set your rental income with, commissions, maintenance fees, depreciation, and any other expenses associated with this income.
    • wwr-no matter what it goes on Sch E.
    • True - one caveat to my recommendation to TUG - timeshare user Group - they mention the property depreciation is over 27.5 years - this is incorrect - timeshares  should be depreciated over 39 years
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