Catherine Posted April 11, 2009 Report Share Posted April 11, 2009 Client has a timeshare that they rent out. Only one week per year, and only a small amount of income (management company takes 40% as a fee; nice gig if you can get it). How do I report this? It falls under the "seven days or less" for passive rental activities. Does that mean Line 21? Or is it still Sch. E? Catherine Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 11, 2009 Report Share Posted April 11, 2009 No, it means it is not shown at all. No tax on the income, but also no deductions allowed. The folks who live around the Masters Golf Club love this rule. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 11, 2009 Author Report Share Posted April 11, 2009 No, it means it is not shown at all. No tax on the income, but also no deductions allowed. The folks who live around the Masters Golf Club love this rule. Thank you! It's hard to believe that there is even _one_ source of income that isn't taxed. When you have to report someone's raffle winnings of $25, to find a place where a couple of hundred gets ignored really makes you doubt that you're seeing it right. Catherine Quote Link to comment Share on other sites More sharing options...
OldJack Posted April 11, 2009 Report Share Posted April 11, 2009 No, it means it is not shown at all. No tax on the income, but also no deductions allowed. Well... I always thought that real estate taxes and mortgage interest were deductible for such a property on Sch-A. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 11, 2009 Author Report Share Posted April 11, 2009 Well... I always thought that real estate taxes and mortgage interest were deductible for such a property on Sch-A. Usually there is a quarterly "maintenance fee" of which _part_ is RE taxes -- but frequently not spelled out as such. The "wear and tear" and management portions are nondeductible personal expenses -- but is you own/rent enough weeks, those would be rental expenses. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.