If I received a 1099-A because I signed a quit claim deed for a Timeshare property that I still owed money on, do I have to report this on my tax return ?

Forum|Forum|4 years ago
January 29, 2022
2 replies
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It is unclear if it is required that I report this unpaid debt as income since it is a 1099-A not a 1099-C, the instructions in the TurboTax explanation are unclear to me.

TurboTax Deluxe Online

Critter-3

Level 15

https://www.investopedia.com/form-1099-a-definition-4782262#:~:text=Form%201099%2DA%20is%20used,that%20it%20has%20been%20abandoned.

AmeliesUncle

Level 15

A 1099-A basically means for tax purposes you SOLD the property.

If the timeshare was personal use and it was sold at a gain, yes, you need to report it.

If the timeshare was rental or business use, yes, you need to report it.

If the timeshare was personal use and it was sold at a loss, you technically may not need to report it, but the IRS won't know that you sold it at a loss, you should report it otherwise the IRS may assume you sold it at a gain (but the loss will not be deductible).