Handling Rental Income on Tax Return

According to Dave McClintock (CPA) on Tug:

Rental Income and Losses If you rent your timeshare, you can deduct all current expenses, including depreciation, advertising, rental commission and maintenance fees against the rental income.

What he said. And use Schedule E to report the income.

Extra Holidays sent a 1099-MISC with the gross rental amount (i.e., before their 40% commission was deducted) in Box 7 (non employee compensation). That implies it needs to go on Schedule C, not Schedule E. Please advise.

Extra Holidays has corrected that mistake. Anyone who got a 1099 with income in box 7 should have already gotten on with the income in Box 1 where it should be.

Does Redweek issue any 1099-Misc for Rental Income?

We do not track or send out 1099 forms for rental income. It is up to each individual owner to track and report their rental income.

I thought it was law that if a company disbursed rental income, they had to issue a 1099 .... how is it that you dont issue 1099s??

Glenn: As RedWeek Real Estate LLC is not a property manager, there is no 1099-MISC reporting requirements. However, if your rentals generate over $20,000 and have more than 200 individual rentals, our payment processor would generate a 1099-K.

RedWeek also does not collect or remit taxes on behalf of the owner, and we recommend you contact a tax professional to determine if rental proceeds collected as a timeshare owner are taxable.

Has the 'American Rescue Plan' reduced the $20k threshold to $600 per year?

FYI Effective January 1st, 2022, PayPal and Venmo are now required to provide customers with a 1099-K form for payments if their total goods and services payments exceed $600 during the tax year. https://newsroom.paypal-corp.com/2021-11-04-New-US-Tax-Reporting-Requirements-Your-Questions-Answered#:~:text=PayPal%20and%20Venmo%20will%20be,your%20Tax%20Year%202022%20filings. and https://dvcfan.com/2022/01/21/what-new-paypal-1099-rules-mean-for-dvc-rentals/

Has Redweek sent out the 1099-K for those who hand rentals totaling more the $20K in 2021? If not when will they be sent. Thank you

Marriott is now a Destinations program using club points. We do not own a timeshare but buy into a points program. How can Redweek even ask the questions on rental income for a timeshare or ask for a tin or SS number? This IRS so-called $600. Income threshold is a fiasco. Also the IRS defines rental property as being a dwelling or a place you live. The Marriott Destination program use is not a dwelling so where can a timeshare fall in the IRS definition?

Marriott is now a Destinations program using club points. We do not own a timeshare but buy into a points program. How can Redweek even ask the questions on rental income for a timeshare or ask for a tin or SS number? This IRS so-called $600. Income threshold is a fiasco. Also the IRS defines rental property as being a dwelling or a place you live. The Marriott Destination program use is not a dwelling so where can a timeshare fall in the IRS definition?

Does Redweek report rental revenue to local taxing authorities, such as state and city?

Van: The taxes we collect on rental bookings are remitted to the relevant tax tax jurisdictions. You may want to check with the relevant tax authorities for your unit to see if there are other taxes you are responsible for collecting and remitting. Rental revenue for your RedWeek account is reported to the IRS and you will receive a 1099-K from us.

Redweek has reported rental revenue in a 1099K, but the payment was not received via Paypal or Venmo, it was received via ACH or check. Tax software indicates that 1099k is only issued for non-personal receipts via Paypal, venmo or the like, so why is Redweek issuing 1099K's? Am I able to write off my timeshare expenses in a 1099K?

Hi Stacy, we issue 1099-K's as a 1099-K is the standard form for funds received from third party settlement organizations, or the central organization that has the contractual obligation to make payments to participating payees of third party network transactions. PayPal and Venmo are also examples of TPSO's, but certainly are not the only ones. As for any deductible fees associated with your rental, you'll want to consult with your tax professional.