Tax Guide to Deducting Your Timeshare Stays as Business Lodging Costs
By If you own a timeshare and use it only for personal and business lodging, you have a unique opportunity to maximize your tax benefits.
Big Benefit
The IRS allows timeshare owners who do not rent their property to claim deductions for business-related lodging without being subjected to the grim vacation-home rules.
Guidelines for Maximum Tax Benefits
- Exclusive use for business and personal lodging. With no rental, you maintain eligibility for business and personal tax advantages without suffering from the vacation-home rules.
- Business deductions for lodging expenses. Under IRC Section 162(a)(2), ordinary and necessary business expenses such as timeshare lodging are deductible when traveling for business.
- Personal use. Personal use of a deeded timeshare does not qualify for business deductions, but it can qualify as a second home eligible for second-home mortgage interest deductions.
Records Strategy
Keep detailed records of your timeshare use, separating business from personal days to audit-proof your deductions and ensure compliance with IRS requirements.
Relatives
Here’s a good rule to know for timeshares: days of rental to a defined relative count as personal use days by you. In other words, the tax code does not recognize as rental days the days you rent your timeshare to a defined relative (close relatives such as parents, brothers, children).
Next Step
If you want my help examining your timeshare use, please call me on my direct line at 408-778-9651.