It’s a fact:
You get the maximum tax benefit from a timeshare when you use it solely for business.
But what happens if you use the timeshare for personal purposes only? The answer is, your timeshare can then qualify as a second home for purposes of the mortgage interest deduction.
But be careful about renting out your timeshare. Doing so complicates things, generally provides no tax shelter, and most likely denies any second home mortgage interest deduction.
Want to find out how to win the timeshare tax deduction game? Read my new article titled Tax Tips: Finding Tax Deductions for Your Timeshare When You Use It Personally and/or Rent It.
Three ways our fact-filled article can help you:
- We’ll show you how to deduct mortgage interest on your timeshare. IRS rules let you deduct mortgage interest on your main home and one additional home. You can choose the timeshare as your second home for mortgage interest-deduction purposes if it qualifies as a residence. There are two ways it can qualify and we’ll walk you through them when you read the full article.
- We’ll explain the consequences if you rent your timeshare. If you’re not renting you can simply name your timeshare as your second home. But, if you rent your timeshare for even one day, you must qualify the timeshare as a home under the vacation-home rules. And this has some serious tax ramifications. We’ll explain this all in simple language when you read the full article.
- You’ll learn a whole lot about timeshare tax laws. We’ll cover passive loss rules, the “Seven Day Rule,” the truth about co-owner use, rental or use by relatives, charitable use, rental pools, and more! You’ll get the whole story when you read the full article.