How do we report timeshare rental income along with offsetting maintenance fees?
We rented out our timeshare. Our maintenance fees far exceed the income gained. How do we report that?
Answers
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aftrans1,
That is a great question with many nuances.
Rental income and expenses are generally reported on Schedule E.
Depending on whether you used the timeshare as a home and for how many days it was rented for will determine if/how much of the maintenance fees you can deduct.
If you use the timeshare as a home and rent it for less than 15 days during the year, it's not considered a rental and you aren't required to report the income and expenses.
If you use the timeshare as a home and rent it for more than 15 days during the year, you'll be required to report all your rental income, but the expenses must be divided between personal use and rental use.
If you did not use the timeshare for personal use but only rented it, you'd report both the total rental income and expenses on Schedule E.
