Hi,

I've read a few threads here that talk about whether timeshares are real estate investments or property, etc. What I want to know though is how they stand on a tax perspective.

Can they be claimed as mortgage deductions? Or are you taxed for them? How do the details of tax law regarding timeshares, work? And what about renting - do you pay taxes on that? (since you probably can't claim it in any way as an expense of course).

Thanks for any clarification! This may help me decide whether buying or renting is the best option.

rambutan

I checked on this with my accountant last year and he said if you buy the timeshare as an investment property then you are able to deduct many things and if you bought for personal use and its going down in value then some cost may be deductable under the idea of perserving your investment value. Your best off consulting with an accountant who is familiar with the laws in your state and you can be sure that if your making money off the timeshare then it will be taxable!

So I guess that means if I am renting it out to guests, it would be taxable, but if I am losing money on it, it is tax deductible? I mean, that is the only way you would use it as an income property - right?