Time Share sale

Forum|Forum|2 years ago
October 25, 2023
2 replies
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I have 2 timeshares in Mexico that I would like to sell. What are the tax implications, if any, in the US of selling those timeshares?

Ask the Experts - Extension - Sept 2023

John-H2021

Level 6

Hello

A time share is considered a personal asset and the sale is reported on a schedule D. If there is a gain it will be taxed at the capital gains rate if there is a loss the IRS doesn't allow you to deduct it.

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lpower30Author

Level 2

Thank you. Would I be able to deduct any maintenance fees that I have paid for the upkeep of that property?

John-H2021

Level 6

In this case maintanence fees are not deductible

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MarilynG

Level 15

Enter it in TurboTax as the Investment Type Other. I tested this with a Cost Basis less than Sales Proceeds, to generate a loss situation.

You should get a screen as per screenshot below. The transaction then doesn't show on Schedule D.

Capital assets held for personal use that are sold at a loss generally do not need to be reported on your taxes unless specifically required such as if you received a Form 1099-S for the sale of real estate. The loss is generally not deductible, as well.

Here's more info on How to Enter Sale of Second Home, Inherited Home or Land and Guide to Schedule D.

@JStaxer

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JStaxer

Level 2

I do have a 1099-S and need to report it. TT directs me where to add the 1099-S information and that is under "investment income" since this is a timeshare sale. When I add the correct tax basis, it creates a loss.