Do I pay taxes on points rented

[Tigger2ntinkerbell]

So from those amounts you should be deducting expenses related to those points -maintenance fees, any cost for mailing or communicating with the renters, a portion of the real estate taxes that you paid for that year of points used. Maybe there are other "expenses" that would help off set.

Just the maintenance fees @ $7 per point would be $861. Bringing your taxable income at least down to $920. Less taxes paid on the property - so if you are only adding $900 to your income it will likely not make much of a difference if any in your refund

We never get a refund from IRS .
I own at AKV(all 4 contacts)and the taxes are not that much on 137 points

 

[tidefan]

No, you couldn't include your buy in costs.

Hmm. I know some people that own condo's here on the coast in AL and they are allowed to depreciate the purchase cost of their rental unit. Would the laws be different in this case?

 

[GAN]

Hmm. I know some people that own condo's here on the coast in AL and they are allowed to depreciate the purchase cost of their rental unit. Would the laws be different in this case?

That's an interesting question -hope someone knows the answer. Roll Tide....

 

[tidefan]

That's an interesting question -hope someone knows the answer. Roll Tide....

RTR!

 

[CraigInPA]

A condo is not a timeshare. You can depreciate a condo if you meet the guidelines set forth by the IRS (up to 15 days of personal use, etc...)

 

[Dean]

Hmm. I know some people that own condo's here on the coast in AL and they are allowed to depreciate the purchase cost of their rental unit. Would the laws be different in this case?

Because of the IRS rules. You actually could if you met certain requirements which you would only be able to do with significant ownership in a given timeshare resort (not system) and only used it as a true business with rental. You likely would not want to for other reasons as you'd be stamping your file at the IRS with a flashing red light that said audit. A timeshare is different than a condo in the eyes of the IRS and most tax preparers are simply ignorant of the differences.

 

[crisi]

So from those amounts you should be deducting expenses related to those points -maintenance fees, any cost for mailing or communicating with the renters, a portion of the real estate taxes that you paid for that year of points used. Maybe there are other "expenses" that would help off set.

Just the maintenance fees @ $7 per point would be $861. Bringing your taxable income at least down to $920. Less taxes paid on the property - so if you are only adding $900 to your income it will likely not make much of a difference if any in your refund

Your real estate taxes would be included in your maintenance fees - don't double dip them, that would be wrong (and in the case of audit, is one of the things which makes agents consider "fraud" rather than "unintentional error." Your expenses will be maintenance fees - and only those that were used on the point rental. If you communicated with a FedEx package, you could write that off - if you did what most of us do and communicate via email, there are no other costs. You do not get to consider your time. Absolutely do not count any trips to "check on" your property - that direction lies fines you will pay off for years.

 

[tidefan]

Your real estate taxes would be included in your maintenance fees - don't double dip them, that would be wrong (and in the case of audit, is one of the things which makes agents consider "fraud" rather than "unintentional error." Your expenses will be maintenance fees - and only those that were used on the point rental. If you communicated with a FedEx package, you could write that off - if you did what most of us do and communicate via email, there are no other costs. You do not get to consider your time. Absolutely do not count any trips to "check on" your property - that direction lies fines you will pay off for years.

Makes sense. If you put the property tax on a separate deduction, then you would need to take that portion out of any MF deduction.