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Categories:

1. Personal-residence rules: Properties rented 14 days/year or less;
2. Personal-residence rules: Properties rented > 14 days/year and is less than personal use days.  Personal use days = max(less than 14 days, 10% of the rental days)
3. Rental property rules: Properties rented > 14 days/year and is greater/equal to than personal use days.  Personal use days = max(less than 14 days, 10% of the rental days)

Examples:
a. Rent for 210 days and vacation for 22 days, then you’re under the personal-residence rules.  (rental, 210days x 10% < vacation, 22 days)

b. Rent for 210 days and vacation for 21 days, then you’re under the rental property rules. (rental, 210days x 10% >= vacation, 21 days)

Timeshares

• If you use your timeshare yourself and not rent it out, then deduct your share of the mortgage interest (as interest on a second home) and the property taxes on Form 1040, Schedule A.
• If you rent out the unit a portion of the time, the correct tax approach is to allocate expenses based upon personal and rental use by all owners. If these figures are difficult to obtain then use your best guess as to a reasonable allocation, e.g. 50%, and follow the personal residence rules. This approach will permit you to deduct the personal portion of the mortgage interest (as interest on a second home) and the property taxes on Form 1040, Schedule A.