Renting out a timeshare unit
Q: If I rent out my timeshare unit, will I have to report the income for income tax purposes?
A: In almost every situation, you are required to report the income on your tax return. The timeshare rental income is taxable, just like any other income you have.
Q: What deductions are allowed as write-offs?
A: Deductions may include your annual maintenance fee, advertising, rental commission, depreciation, property taxes (if you pay them separately from the maintenance fees) and interest expense on your timeshare loan (if you have a loan on the timeshare).
Q: How do I calculate depreciation of my timeshare?
A: If this is the first year of ownership, depreciation expense is calculated at a certain rate of your purchase cost (the amount you paid for your timeshare) according to IRS. However, if you have previously used your timeshare for personal purposes (including an exchange or use by friends or family), you must base your depreciation expense on the current value on the resale market. We advise you to consult your tax accountant for further information.
This information is provided as a general guidance only and Ocean Wind Realty will not be held responsible if the information provided is incorrect.