Did you know that there are multiple tax deductions you can receive as an owner of a timeshare? It’s true! In fact, these deductions can be one of the best perks of having a timeshare to begin with, whether you rent the property out or not.
Below are some of the many tax deductions you may be able to reap:
1. Maintenance
Do you rent out your timeshare? If the answer is yes, then you may be able to deduct any expenses related to maintaining your home.
Timeshare maintenance may involve general upkeep as well as any repairs or upgrades made to the resort, including, but not excluding, repainting, making electrical repairs, replacing floors, and replacing broken windows. Even added amenities may count as maintenance fees and, thus, be tax deductible.
It’s a good thing maintenance fees are deductible, as these can add up quickly. The more the resort is used, the more wear and tear, as well as general damage, that will occur.
2. Rental Use
If you rent out your timeshare, here’s another tax deduction opportunity for you: rental use. Any operating expenses, cleaning costs, and use of utilities will be considered deductible to help offset the income you’ve made from renting out your property. In turn, this can lower the taxes you’ll have to fork over at tax time.
3. Property Tax
Property taxes can be a big pain in the behind (and quite expensive, at that). The good news is, you can deduct your property taxes when filing your taxes for the year. This alone can give you a pretty decent tax break, so you can continue having or renting out your timeshare as you please, all while enjoying lower taxes owed.
4. Loan Interest Payments
Are you still making the beginning-stage purchase price payments on your timeshare property? You may not be able to deduct loan interest payments after all. However, if you have a secured loan, interest may very well be able to be deducted.
5. Donation
Do you plan on donating your property instead of selling it? This is yet again another donation opportunity when filing your taxes as a timeshare owner. You’ll receive a tax rebate based on the property’s fair market value, which can be determined by an appraisal. However, please be aware that there are limitations to this tax rebate.
There are many great tax deductions for timeshare owners, no doubt, to allow them to lower their taxes owed as much as possible. However, if you’re still concerned about whether owning a timeshare is right for you, our timeshare cancellation process may offer a quick and easy way for you to halt the agreement before it’s too late.
Conclusion
When you have a timeshare, one of the greatest things is all the tax deductions you get to reap as a result. From maintenance fees to loan interest payments, there are several things you can deduct when tax season approaches. In turn, having a timeshare might just be one of your best investments.
