Question

I own a timeshare, but I am not going to use it this year. This got me to thinking of giving the timeshare to my employees for their use if we achieve certain revenue goals. How could I create business tax-deductible treatment for the timeshare?

Answer

You have two different tax-deduction possibilities:

Make the timeshare a tax-deductible employee entertainment facility.

Make the timeshare use by employees “compensation” to the employees.

The two methods are very different, but each method will produce the business tax deduction you desire for your timeshare.

Deductible Entertainment Facility

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