taxes on rentals?

cyseitz · #1 (**permalink**) 01-17-2010, 03:28 PM

I have never rented anything out but am hoping to rent out some of my extra points this year. I was wondering if you charged taxes on your rentals and do you have to pay income taxes on what you rent out. I would imagine you do. If you add taxes to your rental charges what is the percentage rates?

If you do have to pay taxes on your property rentals, do you file it when you do your taxes?

Thanks!

tonyg · #2 (**permalink**) 01-17-2010, 04:30 PM

Don't know if State sales taxes legally are required, but income tax would only be on the difference between what you collected and what the week cost you. I suppose depreciation might also be involved if you bought primarily to rent. You cannot take a loss unless you do it as a business.

lawren2 · #3 (**permalink**) 01-17-2010, 04:38 PM

Quote:

Originally Posted by cyseitz

I have never rented anything out but am hoping to rent out some of my extra points this year. I was wondering if you charged taxes on your rentals and do you have to pay income taxes on what you rent out. I would imagine you do. If you add taxes to your rental charges what is the percentage rates?

If you do have to pay taxes on your property rentals, do you file it when you do your taxes?

Thanks!

Of all the points systems I know of, only two charge the transient occupancy taxes upfront at booking. In that case I do charge for them as a separate line item to the renter.

cyseitz · #4 (**permalink**) 01-17-2010, 05:06 PM

How do I know if I have to charge for transient occupancy and How do I figure the difference of what it costs me compared to what I was paid for the week? Thanks

lawren2 · #5 (**permalink**) 01-17-2010, 05:29 PM

Quote:

Originally Posted by cyseitz

How do I know if I have to charge for transient occupancy and How do I figure the difference of what it costs me compared to what I was paid for the week? Thanks

It will depend on which points system you are using. WorldMark gives you the figures right before you book, where applicable. You can go through the whole process without making the res to get that figure.

Other systems don't charge in advance for TOT ( WYN is one) and it would be wise if you advised your potential renters that they will have a tax of x when they check-out to avoid dissatisfaction at check-out.

You should be able to extrapolate what your fees are per point from your purchase and Mfs to make you come out whole or above.

cyseitz · #6 (**permalink**) 01-17-2010, 05:42 PM

Are you saying that Wyndham will charge them when they check out? I do have Wyndham.

lawren2 · #7 (**permalink**) 01-17-2010, 05:51 PM

Quote:

Originally Posted by cyseitz

Are you saying that Wyndham will charge them when they check out? I do have Wyndham.

Yes Wyndham does charge at check-out where TOT is incurred and it is not mentioned on the confirmation. Which WYN are you renting? Perhaps I can help if I have a reference rental to work with.

cyseitz · #8 (**permalink**) 01-17-2010, 06:02 PM

Well, it will probably be Bonnet Creek since that is where we own.

lawren2 · #9 (**permalink**) 01-17-2010, 06:09 PM

Quote:

Originally Posted by cyseitz

Well, it will probably be Bonnet Creek since that is where we own.

To the best of my knowledge, I don't think Orlando has a transient occupancy tax.

Jya-Ning · #10 (**permalink**) 01-17-2010, 07:24 PM

TOT is charged by local. Hawaii has it. If they do the charge, you should let your renter know that they will have to pay the resort.

Income Tax to Federal, If you want to do it legal, each local government will charge the Tax also. You can go to your resort local government to see what kind of form they will ask you for rental.

Jya-Ning