If you own a timeshare, you can qualify you for a number of tax deductions. You can claim deductions for real estate taxes, mortgage interest and rental expenses. Also, you can receive a considerable deduction if you want to get out of your timeshare by selling it to a charity. These deductions depends on the type of timeshare you own and what you decide to do with it.
First, you must find out the tax deductions for which your timeshare qualifies. You may be eligible for deductions on rental tax and mortgage payments. But if you rent out your timeshare to another party, you are eligible for rental-use deductions.
Also file a timeshare you do not rent out under property tax deductions. You can check this on your IRS tax returns. Try to record the local and state property taxes you pay each year for your timeshare.
You may also qualify for mortgage interest deductions. With this, you can deduct the entire amount of interest you pay on your timeshare.
If you rent out your timeshare to others, you can try filing for vacation home deductions. In this section, you can deduct costs like maintenance costs, advertising fees and rental commissions. Moreover, you may file the timeshare you donated to charity as there are also certain tax deductions on these.
Either you rent out or get rid of your timeshare by selling or donating it, there are some qualifications for its tax deductions. Before availing any of the options above, review your agreements first. However, the above-mentioned points can serve as your guide.