Article Date:
June 2024

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Tax Guide to Timeshare Tax Deductions When You Rent It to Others

Last month you learned that business use of your timeshare produces business deductions.


The timeshare subject to the special rules discussed in this article is a timeshare used for



personal purposes only,


rental purposes only, or


personal and rental purposes.


You might ask: What happened to business use? Answer: You first deduct the business use and then ignore it for the personal and rental use. Your business deduction is discussed in Tax Guide to Deducting Your Timeshare Stays as Business Lodging Costs.


Deducting Mortgage Interest on the Timeshare


The mortgage interest rules allow you to deduct mortgage interest on your main home and one additional home that you select.1


You may select the timeshare as a second home for mortgage interest deduction purposes if it qualifies as a residence. The timeshare can qualify as a residence in one of two ways:2



You have no rental use of the timeshare.3


You have rental use, but your personal use is such that it qualifies the timeshare as a second home.4


Caution. The IRS deems as rental use ... Log in to view full article.

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