Have a Tax Question? Ask a Tax Expert
The IRS may be looking at the fact that you had a mortgage interest deduction on your previous years' tax returns for the interest paid on the timeshare loan- is that possible?
If that is the case, you need to contact them, indicate it is a timeshare, probably provide them with documentation showing that it is a timeshare and you only own a week or some points and they will then allow the credit.
A timeshare would be considered a property but it is not your primary residence and does not exclude you from the credit.
I would also recommend that you provide some documentation of your previous residence. If possible a lease agreement showing that you were renting an apartment or house would be a good source for the IRS to look.
The key with IRS is providing them proof that what they are saying is not accurate and they will re-evaluate.
Hope this helps and good luck!
I have already sent them the documentation that was required to explain what the time share is about. I had the tax preparer send a letter as well and filled out forms. I did file interest on the timeshare, but I had too. How can I get the IRS to understand that the timeshare is not a primary residence?
Last week the IRS said that they couldn't accept my claim and advised me to either contest. I really have to go to court for this? I'm sure I am not the only one who has timeshare property and has recently purchased a first home. How can the IRS not be clear on its explanation of what or why they are considering a timeshare a primary residence?
No, you can request to go to the appeals division rather than the courts. Prior to that - I would suggest that you contact the Taxpayer Advocacy department and get them involved. Their goal is quick resolution of a problem that has been outstanding for more than six months.
You can find the Taxpayer Advocacy in your area by looking at irs.gov.