err, timeshare away to charity? If you donate it, you will be eligible for a tax rebate in the amount of your property’s fair market value. Legal fees are also ineligible for a write-off. No matter how steep the closing costs were on your timeshare, the bad news is they’re not deductible for tax purposes. 6 In other words, you can’t dodge taxes here by “renting” your timeshare out to your Cousin Darrell for his annual Florida fishing trip. Be aware that if you’re renting the property to relatives, it can only be deducted if they’re using it as their main home and they’re paying you rent that’s equivalent to fair market value.One thing to note is that expenses from your personal use of the timeshare aren’t deductible. You’ll have fewer limits on deductions if the rental income is for profit.Another non-profit rule: Expense amounts above the annual rental income don’t roll over to become deductible in the following tax year.If the rental is not for profit, you can only deduct expenses up to the amount of your rental income.The IRS has a few limits and rules about which rental expenses are tax deductible: But you may be eligible for a tax deduction. Renting out your timeshare? You should know that you’ll nearly always need to report that income when filing with the IRS. Just be sure you get as many deductions as you’re allowed! MAKE MONEY FROM HOME IWRITE PROFESSIONAL
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |