Unused timeshare tax deduction and employee perk!
You are considering offering your timeshare to your employees as an incentive for achieving specific revenue goals, and we are interested in how you can create a business tax deduction.
DeductibleEntertainment Facility
One option is to qualify your timeshare as a tax-deductible employee entertainment facility. This approach provides a significant tax-free advantage to your employees, as using the facility is a tax-free fringe benefit.
Timeshare as Compensation
Alternatively, you can treat the use of the timeshare as “compensation” to your employees. This method allows more flexibility, including the ability to offer it only to some employees (at your discretion, of course.)
BusinessTax Deduction
Regardless of the chosen method, you must follow specific steps to ensure the deduction is correct on your business tax return. This applies to Schedule C and business tax returns.
How is your summer going? Are you using your timeshare for business?