You cannot deduct the loss on the sale if it was a personal-use timeshare, unfortunately. Timeshares are considered personal assets and losses are not allowed. You don't have to report the timeshare sale unless you received form 1099-S for the sale.
Time share sale data entry:
- Federal Taxes
- Wages and Income
- Scroll down to Investment Income
- Select Stocks, Mutual Funds, bonds, Other
- Indicate that 1099-B/brokerage statement was not received for the sale, continue through the interview.
- On the screen Choose the type of investment you sold, select Second Home - you will be asked to enter the net proceeds, the date of sale, how you acquired the property and then the cost basis of the home (original cost and improvements).
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