G2R Posted April 5, 2019 Report Share Posted April 5, 2019 Client owns a 3 week timeshare. Uses it for 11 days personally, rents it out for 10 days. Got a 1099 for the rental income. Just want to confirm. The timeshare doesn't qualify as a 2nd home because they didn't personally use it for 15 days correct? I report it on Sch E, but losses are limited to rental income. After that they are disallowed, correct? Do I have to split the association fees and other expenses between personal and rental? Meaning, only (10/21 or 48%) of expenses are deductible on Sch E? Are the disallowed losses carried forward or permanently disallowed? Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 6, 2019 Report Share Posted April 6, 2019 Less than 14 days of rental, can't they still just ignore it all? Or did that change with the new law? Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 6, 2019 Report Share Posted April 6, 2019 Since the rental days are less than 15 , the rent isn't reportable, The 1099 may trigger a letter from the IRS, which will have to be answered. 1 Quote Link to comment Share on other sites More sharing options...
G2R Posted April 6, 2019 Author Report Share Posted April 6, 2019 This is what I thought too, however, after researching it and I think because it doesn't qualify as a 2nd home (they didn't stay in it the minimum of 15 days necessary to qualify as a 2nd home), then that rule doesn't apply. https://www.redweek.com/resources/articles/tax-aspects-renting-timeshare Quote Link to comment Share on other sites More sharing options...
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