No, you cannot deduct your loss, on a Timeshare that was personal use property.
Timeshare property losses:
- If these were rentals, you
may be able to claim losses.
- If these were for personal
use, you cannot deduct personal losses.
Personal-use
property:
Generally, property held for
personal use is a capital asset. Gain from a sale or exchange of that property
is a capital gain. Loss from the sale or exchange of that property is not
deductible. You can deduct a loss relating to personal-use property only if it
results from a casualty or theft.
Per
IRS Publication 544
, chapter 4, Reporting Gains and Losses: Loss from the sale or exchange of
property held for personal use is not deductible. But if you had a loss from the sale or
exchange of real estate held for personal use for which you received a Form
1099-S, report the transaction on Form 8949 and Schedule D, as applicable, even
though the loss is not deductible.
To enter the sale of
your Timeshare(s):
These are entered in the
investment section of TurboTax. Follow these instructions:
1. Open your return in TurboTax.
2. In the search box, search for sold second home (use this exact phrase) and then click
the "Jump to" link in the search results.
3. Answer Yes on the Did
You Sell Any Investments? screen.
o If you land on the Here's the investment sales we
have so far screen,
click Add More Sales.
4. Answer No to the 1099-B question.
5. On the next screen, select Second Home (choose this also for inherited homes)
or Land. Click Continue.
6. Follow the on-screen instructions to completion.
