How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Gerri A Harrison CFP EA Your Own Ques...
Gerri A Harrison CFP EA
Gerri A Harrison CFP EA, Enrolled Agent
Category: Tax
Satisfied Customers: 252
Experience:  27 years of preparing income tax returns - both personal and small business
Type Your Tax Question Here...
Gerri A Harrison CFP EA is online now
A new question is answered every 9 seconds

I am in a situation where I purchased a timeshare in the state

This answer was rated:

I am in a situation where I purchased a timeshare in the state of California three years ago and in March of this year, 2010, I purchased my first home in the state of California with a bank approved FHA loan.

I did my 2009 federal taxes and claimed for the $8000 government credit for first time home buyer. The IRS is now denying me the claim because they think that the timeshare is a primary residential property. I am not residing in the timeshare property. It is a vacationing spot. My home that I purchased is where I primarily reside. I need to know if the timeshare is considered a residential property or explain why the IRS would consider the timeshare a property?

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!

Customer: replied 6 years ago.

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

Gerri A Harrison CFP EA and other Tax Specialists are ready to help you

Related Tax Questions