Time Share

Apr 22, 2008 4 Replies

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R. Pile 18 years ago

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.

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Bill Brown 18 years ago

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

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John D. Goulden 18 years ago

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

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Phil Marti 18 years ago

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.

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Seth 18 years ago

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

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