Where should timeshare income be reported on a tax return?

Timeshare income is reported based on how the income is earned and how the property is used. There is no single line for “timeshare income” on a tax return.

1. Timeshare Rented Out

Report on Schedule E (Form 1040)

If you rent out your timeshare (short-term or long-term), the income is treated as rental real estate income.

Where to report

• Schedule E (Form 1040) – Part I

What to include

• Gross rental income received
• Deductible expenses (maintenance fees, HOA dues, repairs, advertising, management fees, etc.)
• Depreciation (if applicable)

2. Timeshare Used Personally and Rented Occasionally

If you personally use the timeshare and also rent it out:

Key rule

• If personal use exceeds IRS limits, the property is considered a personal-use property
• You must still report all rental income
• Expense deductions may be limited

Personal-use threshold

Personal use exceeds the greater of:

• 14 days, or
• 10% of total days rented at fair rental value

3. Limited Rental Use (14 Days or Less)

Income may be excluded

If you rent the timeshare for 14 days or fewer during the year:

• Rental income is not reported
• Rental expenses are not deductible

(This is the “Augusta Rule,” but it applies to any property, including timeshares.)

4. Timeshare Income as Part of a Business

If timeshare rental activity rises to the level of a trade or business (e.g., frequent rentals with services provided):

Report on Schedule C

• Income reported on Schedule C (Form 1040)
• Subject to self-employment tax

Uncommon for most individual timeshare owners.

5. Exchange or Point-Based Income

If you receive income from:

• Exchanging usage rights
• Renting points through a resort or exchange company

The IRS generally treats this as rental income, still reported on Schedule E, unless facts indicate business activity.

Summary

Related Questions

• How do I report airbnb income on my tax return?
• Do I Have to report rental income If It doesn’t cover my mortgage payments?

Sources:

• IRS Schedule E Instructions 
• IRS Publication 527, Residential Rental Property
• IRC §280A(d)
• IRC §280A(g)
• IRC §162
• IRS Publication 334, Tax Guide for Small Business 
• IRS Publication 525, Taxable and Nontaxable Income