Time Share

A time share condo was bought and sold at a loss within the same calendar year. Used only for personal use.

Reported as a short term capital loss on Schedule D or not reported as a personal loss?

========================================= MODERATOR'S COMMENT: Assuming this is not a main home subject to Sec 121 exclusion, report on schedule D as a sale of second home, and show the loss. On the next line write "Personal Sale - Loss Disallowed" and enter that loss as a positive amount, so the result is zero gain/loss.

Reply to
R. Pile
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Losses on the sale of personal use assets are not deductible. That includes losses on personal use time-shares.

Reply to
Bill Brown

What about gains? If the OP had sold the (personal-use) time share and made money on the deal, would that gain be taxable? If so, how is it reported? What about someone who purchases a used car, drives it for a few months (personal use), and then sells it for a modest gain? Is that gain taxable?

THANKS

Reply to
John D. Goulden

Yes

Schedule D of the 1040

Not that you asked, but both these hypothetical buyer/sellers would also have line 21 miscellaneous income for the payment they got from Ripley's Believe It or Not.

Reply to
Phil Marti

Back in the 1970's, there was at least one year you could buy a Diesel Rabbit new, and sell it used the following year at a profit.

I'm sure there has been at least one case of someone buying a (used) timeshare at a fire sale and flipping it for a profit.

Seth

Reply to
Seth

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