Today TaxMama hears from Sylvia in Texas needlessly putting herself down. “About those darn time share payment deductions! I understand that only stupid people invest in such things. However, can we deduct the property taxes assessed to us?”
Actually, Sylvia, pretty bright people do too, if the price is right.
And yes. If the timeshare is your vacation home, you may deduct the interest and property taxes, but not the association dues or membership dues.
You only get one home and one vacation home.
And they can be a pretty good value if you rent them out each year instead of using them.
You do realize that you can rent your home or vacation home for up to 14 days a year tax-free. Yup – ALL the income for 14 days is tax-free. In fact, during the Los Angeles Olympics, here in the mid-1980’s, I helped a friend build a rather successful business around this concept. But that’s another story.
Anyway, when you rent it out, your tenants’ rent ends up covering the annual dues/fees And you can use their money to pay for a pretty terrific vacation anywhere you like. Or to pay off your unit.
Once it’s paid off, it costs you very little to enjoy it.
Otherwise, these days, I do find timeshares to be pretty expensive, when you consider all the costs each year and the fee when you actually use it. Unless you invite a couple of friends or family members. THEN, it’s a great value.
And, remember, you’ll find answers to questions about all kinds of tax issues, free. Where? Where else? At TaxMama.com
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