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Orlando purchased a timeshare property in Hawaii that he can use for 5 weeks each year....

Orlando purchased a timeshare property in Hawaii that he can use for 5 weeks each year. If Orlando uses this property for his vacations during the year and rents the property to others when he chooses not to use it, can he deduct any expenses related to this property? Explain

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Answer #1

A timeshare is considered an entertainment facility which doesn't qualify as a business deduction. Hence you cannot deduct timeshare related expenses. However, your share of property taxes and any mortgage interest you pay might be deductible. The tax break available for such ownerships include : -

  • Deducting mortgage interest as long as the debt is secured by the property.
  • Deducting real estate taxes . The taxes are deductible whether you are billed directly or the tax is separately identified on the time share maintenance bills.
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