On Jan 2, 12:47*pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

Sigh, so at the end of this, I'm almost where I started, other than
having access to an article on the subject. Which is not bad. I'll
read the article and see what I think. I'll be interested to see
whether the timeshare management company sends a 1099 for the rental
proceeds.

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On Jan 2, 9:09*am, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

Actually, the expenses were MORE than the rental proceeds.

I'm not interested in taking a loss. I just don't really want to end
up behind cashwise, and then adding insult to injury, pay taxes on the
rental income!

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On Jan 2, 8:34*am, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

It wasn't our first year of ownership, but I doubt that's relevant.
And we have NEVER stayed there. We have only ever traded the week for
a stay elsewhere, or for points to be used toward purchase of other
travel opportunities.

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On Jan 1, 5:50*pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

That crystal ball was pretty clear. Anybody who buys a timeshare with
a profit motive would be better advised to spend their money on
therapy (either fiscal fitness or mental fitness).

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removeps-groups[at]yahoo.com wrote:
- quote -

2%. Misread the OP re expenses.

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On Jan 2, 9:09 am, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

How did you come up with 2%?

- quote -

OP said: "The maintenance fees we paid were greater than the rental
proceeds (yah, big surprise).", which seems that expenses were more
than the rental.

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removeps-groups[at]yahoo.com wrote:
- quote -

the management company has the records of availability, use and
by whom. As they are collecting fees, arranging for maintenance,
etc. and filing tax returns they need to keep those records to
substantiate income and expense.

In the instant case, it is highly likely that the unit was used
personally by other timeshare owners. And... the tax court, ninth
& tenth circuits say that the method to use for allocating
expenses when you have mixed use, is to take the period of rental
and divide by availability. If one assumes the unit was available
for use for at least 50 weeks... you are looking at allocating 2%
of the expenses to the rental income.

Best case scenario if everything fell right, is that expenses
could be written off against the income and any loss would get
carried forward. The OP said that expenses were less than the rental.

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On Jan 2, 6:39 am, se...[at]panix.com (Seth) wrote:

- quote -

Per the article it seems that only if all owners rented out the
timeshare for the stipulated time, then would rental losses be
deductible. Perhaps the management company of the building can keep
track of the total number of weeks that each unit is available for
rent, and available for personal use, so that the owners can know
whether that can deduct, and if some what is the allocation ratio.

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- quote -


Thank you, that is an excellent article. I wonder if that code section, as
it applies to time shares, was actually intended.

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Thanks Alan; the year's brand new and I've already learned something!

I interpreted the article as stating that expenses were deductible up
to
income, with a carryover of unused losses (like any rental that
exceeds
the personal use rule). I doubt that it is common for an association
to provide
the necessary information for calculating the rental/personal use
ratio of each unit;
I would assume the limit is exceeded unless the taxpayer had proof to
the
contrary.

In classifying a time-share as personal, business or investment
property, I think
the IRS might balk at a taxpayer who takes one of the latter two
classifications and
claims a loss on the sale. To claim it as investment means you bought
it with the
intent of holding it for a profit (never using it or never renting
it); to claim it as business (rental
in this case), it appears that your partial ownership may be affected
by what the other
owners do. Any thoughts?

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<removeps-groups[at]yahoo.com> wrote:
- quote -

I might also imply that this is the first year of ownership.

The
- quote -

it might be a resonable conclusion, but it is not assured. I assumed, upon
reading the original post, that the owner put the timeshare into a pool with
a profit motive. I don't know that for sure, but that, too, is a reasonable
assumption.

Providing an answer based on unstated assumptions makes the answer, per se,
incorrect.

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In article <gjk5vk$30q$1[at]reader1.panix.com> ,
Arthur Kamlet <-To[at]panix.com> wrote:

- quote -

But can the expenses be deducted (up to the amount of income), so
there's no taxable income remaining?

Seth

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In article <xWd7l.249450$Mh5.46443[at]bgtnsc04-news.ops.worldnet.att.net> ,
Gil Faver <rowdy'sboss[at]xxyz.com> wrote:
- quote -

It was the first time OP rented it out. The phrasing implies that
there were previous years in which OP used it personally. The
conclusion that it was purchased for that personal use seems quite
reasonable.

Seth

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In article <2b8c805e-2a19-4f98-a541-10313ac0891e[at]g39g2000pri.googlegroups.com> ,
<wpatch[at]aol.com> wrote:
- quote -

After reading David Fogel's analysis in the CASEA Journal, I'm
convinced there's no deductable loss and the income is to be
reported.

Is this a great board, or what?
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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- quote -

Note that in the case of a time share the 14 days or less include the
units
of all 52 weeks of the time share holders. If the unit is rented out
for 3 weeks
of the year, rental is taxable. In absense of proof of 14 days or
less, IRS will
treat it as taxable.

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Stuart A. Bronstein wrote:
- quote -

renting timeshares) is by David M. Fogel, EA & CPA. He explains
how the rules from Section 280A get applied. Specifically, they
relate to the dwelling which is defined as the condominium not
the one week timeshare period. SO, it is quite possible for the
owner of the timeshare to rent it for the week and still have a
dwelling that is used for personal use. He also discusses Tax
Court, Ninth & Tenth Circuit rulings on this issue.

http://fogelcpa.com/Documents/Fogel-TimesharesCSEA.pdf

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"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gjjpe8$fab$1[at]reader1.panix.com...
- quote -


you must have quite a crystal ball to deduce that from the original post.

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In article <SAd7l.249414$Mh5.74089[at]bgtnsc04-news.ops.worldnet.att.net> ,
Gil Faver <rowdy'sboss[at]xxyz.com> wrote:
- quote -


But there's no profit motive. So no loss.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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"Arthur Kamlet" <kamlet[at]panix.com> wrote in message
news:gjjmi7$4a6$1[at]reader1.panix.com...
- quote -

but that is 100% of this asset.

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Brew1 <brew.one[at]gmail.com> wrote:
- quote -

Under section 280A, a "dwelling" that is rented out for two weeks or
less during a year incurs no tax recognition either of income or
deductions. I don't know whether that would apply in this case,
however, since it requires it to be used as the taxpayer's residence
during the year.

Stu

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