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Level 1
January 29, 2022
Question

1099s

  • January 29, 2022
  • 3 replies
  • 25 views

Bought a Disney time share in 2003 for $3150 and sold it in 2020 for $4100.  I received  a 1099s for $4100

 

I guess my capital gains is about $1000.  Is that what gets reported?  Why would I report $4100 and not the $1000 on my tax's?

    3 replies

    Level 7
    January 29, 2022

    You report that sale as sales price minus cost. That determines your profit and the program taxes it as appropriate.

    Level 15
    January 30, 2022

    @rk8196   You will treat this as the sale of a capital asset. (However, Losses from the sale of a personal use timeshare are deemed to be personal losses and are not deductible) 

     

    To enter this transaction in TurboTax Online or Desktop, please follow these steps:

    1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
    2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
    3. Scroll down the screen until to come to the section “Investment Income”
    4. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
    5. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
    6. Since you did not receive a 1099-B, answer “no” to the 1099-B question
    7. Choose type of investment you sold - select Second Home
    8. Some basic information:
      1. Description –  Usually the basic timeshare information
      2. Sales Proceeds – Net proceeds from the sale 
      3. Date Sold – Date you sold the property

    Source: VictoriaD75 Employee Tax Expert

    [Edited 1-30-22|11:22 am PST]

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    Level 15
    January 30, 2022

    Yes, you only pay tax on capital gains.  You will need Turbotax premier or higher.  Go to the section for Sale of stocks, bonds and other investments.  Treat it like the sale of a second home, don't enter as a 1099-B.  You will be asked for the purchase price, selling price, dates, etc.