Selling Timeshare And Taxes Question

six16andlife · #1 (**permalink**) January 15th, 2008, 06:17 PM

How can I benefit tax-wise by selling my timeshare? Are there deductions that can be made and, if so, what are they? I know you may not be tax-pro's, but I thought you may be able to point me in the right direction or have an answer for me regarding deductible expenses and such.

Thanks,

Dwight/six16andlife

TAI_Staff · #2 (**permalink**) January 15th, 2008, 06:25 PM

I have asked a similar question recently at several tax-pro websites and thus far only received one reply to my query from About.com has been able to provide me with any kind of response, which I have posted below.

Quote:

A timeshare is a capital asset, and so when you sell a timeshare, you will calculate your capital gain or loss. Fees and expenses incurred to sell a capital asset are included in the cost basis of the asset. Thus your cost basis in the timeshare would include your original purchase price, plus these advertising expenses, plus any commissions or fees paid to a real estate agent. Since this is a personal residence, any capital losses are not-deductible for tax purposes. You will need to report the transaction anyways so that your tax return is complete and accurate.

Hope this helps.

William
About Taxes - Federal Tax Tips, News, and Planning Advice from About.com

If any forum visitor can provide additional information in this regard, Timeshare Adventures welcomes your input.

TAI_Staff · #3 (**permalink**) March 24th, 2008, 09:24 AM

I recentley receive a google news-alert related to selling timeshare and tax related Q & A pertaining to deductions. The fillowing quote is from Cincinnati.com:

TIMESHARE FEES LOST

Q: I sold a timeshare in 2007. Are the maintenance fees and the loss on purchase price vs. sale price all deductible as losses against income?

A: No, unfortunately you can not deduct losses from the sale of personal assets (such as a residence or timeshare). However, if the timeshare was a rental property then the loss and expenses may be deductible. See IRS Publication 523 for more information.