- Joined
- Apr 18, 2018
- Messages
- 1,370
As a CPA I feel compelled to clarify some statements. Please do not take any offense as I'm not trying to be argumentative or point out mistakes. However, some people who read these boards could use information they've learned here and I want to ensure their making decisions on accurate info.
Agreed it's true that rental income must be reported whether a broker is used or not. However, Form 1099-MISC is the form a broker would send to an owner. The owner reports the rental income and expenses on Schedule E
This is incorrect. Dues are a required expense for the owner and therefore fully deductible from rental income.
Correct about the interest, not the rest. Contracts have an expiration date, and therefore the owner's right to use diminishes each year. This is similar to depreciation and can most certainly be used to offset rental income.
Disclaimer: This is a very general overview of some topics pertaining to rental income and should not be construed as tax advice. I would highly recommend that any owner who rents and isn't very familiar with tax laws seek help specific to their situation from a licensed tax professional. Preferably one with experience with timeshare rentals.
Thank you, Scott. I AM NOT a tax person. I do have an accountant, and I presume they will do all of these things right, but I AM trying to understand as much as possible, myself.
Something kind of unrelated: I would like to put my DVC contracts into a Family Trust (Probably), but I have NO idea how a Family Trust works, or what you need to do to transfer it to the Family Trust, and HOW will it affect resale, someday? If anyone knows anything about this, please comment.