Are Timeshare Payments Tax Deductible?
A lot of timeshare owners may be wondering how their timeshare impacts on their tax bill. If you have rented out your timeshare week in exchange for money, we will help answer your questions.
Any income should be declared on your tax return, so if you profited from renting out your timeshare week, then yes, the income may be affected by your tax bill. Even if the money you earn only covers your maintenance payments, it is still income you received during the tax year meaning it will subject to taxation.
The only instance in which a timeshare property may possibly be tax deductible would be if it could be considered a work-related resource. For example, if you use your timeshare as a work office, whether you have clients in the country of your timeshare so you use the property as an office, or if you are a writer using it as a writing retreat, then it could be classed as a work-related resource. However, it would be extremely unlikely that you would be able to legitimately claim using these terms.
If you are wondering where you stand on being taxed on your timeshare, a lot depends on your personal circumstances. It is worth clarifying this if you think your case is exceptional. Get in touch with us, we can evaluate your case and circumstances and see where you stand as to whether you’ll actually be taxed on your timeshare at all.