Patrick Michael Posted April 12, 2020 Report Share Posted April 12, 2020 Happy Easter everyone! Client could not use her time share in 2019 and was able to rent out 3 of her 14 days. She received a 1099 for the $645 of rent and had $190 in commissions and other expenses related to the rental . Since this was a one time event and she is not trying to make a profit I was thinking of putting the $455 net income on line 21 as other income, not subject to SE tax. Would this be proper treatment or should it go on a Sch E? 1 Quote Link to comment Share on other sites More sharing options...
Elrod Posted April 12, 2020 Report Share Posted April 12, 2020 Happy Easter to you too Patrick, And good tidings to all on this community.. 1 Quote Link to comment Share on other sites More sharing options...
Max W Posted April 13, 2020 Report Share Posted April 13, 2020 If you net it out, which is not proper, it won't match the the 1099. Do the Sch E. It won't take long with just a few entries and you can charge the client for it. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 14, 2020 Report Share Posted April 14, 2020 What happened to the rules about rentals that lasted fewer than 10 days? Do those not apply to a timeshare? Or did they go poof while I wasn't looking? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 14, 2020 Report Share Posted April 14, 2020 26 minutes ago, Catherine said: What happened to the rules about rentals that lasted fewer than 10 days? Do those not apply to a timeshare? Or did they go poof while I wasn't looking? That rule where the rental is less than the greater of 14 days or 10% of days rented is supposed to apply only to rentals of a personal dwelling unit (second residence or vacation home), and in this case the timeshare wouldn't qualify as a second residence because the fact pattern says that the taxpayer wasn't able to use it at all last year. 2 Quote Link to comment Share on other sites More sharing options...
Elrod Posted April 14, 2020 Report Share Posted April 14, 2020 For Catherine...Science and the mystery of POOF. 3 Quote Link to comment Share on other sites More sharing options...
Patrick Michael Posted April 14, 2020 Author Report Share Posted April 14, 2020 On 4/12/2020 at 9:58 PM, Max W said: If you net it out, which is not proper, it won't match the the 1099. Do the Sch E. It won't take long with just a few entries and you can charge the client for it. Good point. I didn't think of that. If I put it on Sch E would it have to be depreciated and that depreciation "recaptured" when sold (which is what I'm trying to avoid)? How about putting the $645 on Line 21 and then a negative amount on Line 21 to net it out? Or just putting the $645 and eating the tax? Quote Link to comment Share on other sites More sharing options...
Roberts Posted April 14, 2020 Report Share Posted April 14, 2020 If it's on Schedule E (which is in my opinion the correct location) I wouldn't enter it as an asset to depreciate. You are likely supposed to enter it but for 3 days? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 18, 2020 Report Share Posted April 18, 2020 This is just my opinion and I am not being critical of the OP. But the amounts we are talking about here regarding depreciations, possibility oi SE tax are very insignificant so is it worth splitting hairs over? I agree with Max, put it on the E and be done with it. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 18, 2020 Report Share Posted April 18, 2020 17 hours ago, Terry D said: regarding depreciations I don't see any cause for depreciation. The timeshare isn't really ownership of the building asset, rather it's reserved time to USE that asset. 1 Quote Link to comment Share on other sites More sharing options...
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