If you have rented out your timeshare week in exchange for money, you may be wondering if that income can be written off your tax bill. It’s an interesting question, but it’s one that has been posed to us recently, so we thought it a good idea to give you an answer.
The short answer is that, yes, you will be required to declare the income on your tax return if you profited from renting out your timeshare week. Even if the sum you earned only covered your maintenance payments, it is still income you received during the tax year that is subject to taxation.
The only circumstance in which a timeshare property may possibly be tax deductible would be if it could be considered a work-related resource. This could include using it as a work office for whatever reason (perhaps if you are a writer and use the week for uninterrupted writing?) or similar. It’s highly unlikely, however, that most people would be able to legitimately claim on these grounds.
Of course, a lot depends on your circumstances, such as your income and so on, as to whether you’ll actually be taxed on your timeshare at all. It’s worth clarifying where you stand with us if you think your case could be exceptional.