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Get your taxes done using TurboTax
Thanks for everyone's input. This is a complicated issue. Although I owned the membership for about 30 years, I only rented the slip associated with it for the last five years or so and declared income and expenses. Someone mentioned elsewhere that if I had not rented the slip this would not be an asset to be capitalized. Not sure if that is true or not. The analogy was that if you owned a 1962 Austin Healy for 4O years and paid $3000 for it back then, even though you sold it for $60k today, the $57k would not be a gain because you did not rent the automobile. Conversely, if you bought a vehicle a couple years ago at $60,000 then rented it for two years and declared income and expenses, when you sell it at a $20k loss, this would actually be a loss applicable to your taxes. The key is that you used the vehicle as a rental, whereas the Austin Healey was for pleasure only. Thoughts on all this?