Question

Timeshare Rental Trade or Business

Forum|Forum|6 years ago
April 26, 2020
1 reply
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I ordinarily rent 2-4 timeshare weeks each year. I may use 1 or 2 of the weeks. This year I used none. I advertise for and select the renters, prepare the leases, correspond with the lessees, and am paid the rent directly by the lessees. Can the rental be considered a "Trade or Business?

A

AnnetteB6

No, it would be considered rental income reported on Schedule E, not business income reported on Schedule C.

It would not qualify as a trade or business with respect to the Qualified Business Income deduction. It would still be considered a passive activity unless you are a qualified real estate professional.

For more information: Can I get the QBI deduction on rental income?

@DMC4

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