Timeshare Loan Interest
If you buy a deeded week of timeshare from Festiva, Bluegreen, or any other reputable timeshare company the loan interest is deductible. Consumers that purchase a right to use lease or points-based arrangement cannot deduct the interest on those types of loan arrangements. Your deeded week must appear in the loan document as the security for the loan so you can take full advantage of your deduction when filing your taxes.
If it’s not stated in the loan document you need to get a letter from the seller that clearly states loans security.
All timeshare companies like Disney, Marriott, Westgate, cannot let you deduct them on your tax filing. The resort where you have a timeshare uses these fees to pay for everything from landscaping to amenities and business costs, and the average annual cost is around $1,000. So, the resort itself writes many of the expenses off to the IRS.
There is only one tax exception for maintenance fees. You can write them off if, you paid them while renting out the timeshare to other people.
Yes, you can get a deduction from the property taxes you pay on your timeshare. Just be sure you follow the rules to make it stick:
- If you are going to attempt to write off the assessed taxes on your timeshare.
- they have to be shown as separate from your miniatures fees. Resorts have a tendency to lump these two items together in your maintenance fee.
- A good practice would be to get a letter from the timeshare resort that has an itemized statement showing that you paid the property taxes.
- If the property tax is for a larger parcel of property that you are just joined into by your week purchase of a timeshare, you will not be responsible for the property tax payment and you also will not be able to use it as a deduction on your tax return.
Always speak to a tax professional when filing your taxes. This is just the opinion of Timeshare Bee Gone.