Are Time Share Maintenance Fees Tax Deductible?

• Time share maintenance fees are those that you must pay on an annual or semi-annual basis. These fees improve and maintain the resort associated with your time share. These maintenance fees are similar to condo fees and are generally not tax deductible. The tax code does not provide for deductions for general living expenses, which this type of fee falls under.
  
  

Mortgage Interest and Insurance Deduction

• Though you may not deduct your time share maintenance fees on your taxes, you may be eligible for other tax deductions associated with your time share. If you financed your time share with a mortgage, provided you meet other requirements, you may be able to deduct the interest that you pay on your mortgage. You can deduct mortgage interest on your primary home and one other home, and your the property must secure your mortgage. Provided your time share is the second home, you may be able to deduct the mortgage interest. You can also deduct the amounts that you pay for homeowner's insurance premiums, if applicable.
  
  

Property Tax Deduction

• In addition to deducting your mortgage interest, you may deduct any taxes that you pay on your time share to a state or local government. You may deduct any real estate taxes and sales taxes paid on the purchase of the time share in the year in which you bought it. To the extent that your time share maintenance fees cover any taxes associated with your particular time share, you may be able to deduct that amount.
  
  

Investment Property Deduction

• If you own a time share that you do not use for your primary residence and you use as an investment property, you may be able to deduct the time share maintenance fees. The reason you can deduct maintenance fees for investment property and not for your personal use is because these fees would be considered an ordinary and necessary business expense, which is deductible under the Internal Revenue Code. You would also be able to deduct other expenses related to renting your time share, such as repairs, legal fees and other general advertising costs. Your deductions are limited, however, to the amount of your rental income profit.