As many owners are having financial difficulties with their timeshares, many of them simply want to get out from their timeshares units. However, there’s a way to minimize such financial burdens by filing a timeshare tax deduction. Timeshares can qualify for a slew of tax deductions. Claiming these deductions depends entirely on the type of timeshare you have and what you decide to do with it. Below are some guidelines to follow when filing for tax deductions.
First, find out the tax deductions for which your timeshare qualifies. Example, if you own a timeshare, you are eligible for deductions on rental tax and mortgage payments. On the other hand, 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. Another one is to file a timeshare you do not rent out under mortgage interest deductions. It’s important also to file a timeshare for vacation home deductions if you rent out your timeshare to others. In this section, you may deduct costs such as maintenance costs, advertising fees and rental commissions. Lastly, file a timeshare you donated to charity on Form 8283 of your returns.
Timeshares can be really costly especially at this down economy. That’s why many owners try to get rid of their timeshares due to its costs. Some of them even hire a timeshare transfer company such as the Transfer Smart. But such costs could be minimized by filing a tax deduction that may qualify the type of timeshare you have. The above mentioned points however, may guide successfully in filing your tax deduction.