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Time share repair expense deduction

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Level 3
last updated ‎March 06, 2020 10:40 AM

My client has 3 time shares at 3 different cities in California and in Las Vegas. They are all paid off therefore there is no Form 1098 mortgage statement. She received "Dues & Fees Statement" from WORLDMARK by Wyndham  showing $700.00 for repairs. She paid the $700. There is no physical address for any property, but  the statement has  PO BOX address from LAs Vegas. Since it is not a rental property I cannot use Schedule E.

My question is: 1. Can she deduct the repair expense on her Time share?

                             2. On which form should it be claimed?

My thinking is that since it is her personal property repairs cannot be claimed until sold.

Any input please.

                              

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Level 15
last updated ‎March 06, 2020 10:40 AM

If your client had rented out the time share, part of those expenses may be deductible against the rental income under §212.  Otherwise, these are nondeductible personal expenses.  You can't deduct them when the property is sold either since costs of repairs are not to be capitalized as part of the basis.

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Still an AllStar

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Highlighted
Level 15
last updated ‎March 06, 2020 10:40 AM

If your client had rented out the time share, part of those expenses may be deductible against the rental income under §212.  Otherwise, these are nondeductible personal expenses.  You can't deduct them when the property is sold either since costs of repairs are not to be capitalized as part of the basis.

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Still an AllStar

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Level 3
last updated ‎March 06, 2020 10:40 AM

Thank you so much for your help. My client was insisting that I should claim her expenses.

 

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Level 15
last updated ‎March 06, 2020 10:40 AM

NP, @singh!

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Still an AllStar
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