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posted Jan 29, 2022 9:26:04 AM

If I received a 1099-A because I signed a quit claim deed for a Timeshare property that I still owed money on, do I have to report this on my tax return ?

It is unclear if it is required that I report this unpaid debt as income since it is a 1099-A not a 1099-C, the instructions in the TurboTax explanation are unclear to me.

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2 Replies
Level 15
Jan 29, 2022 9:28:58 AM
Level 15
Jan 29, 2022 1:06:00 PM

A 1099-A basically means for tax purposes you SOLD the property.

 

If the timeshare was personal use and it was sold at a gain, yes, you need to report it.

 

If the timeshare was rental or business use, yes, you need to report it.

 

If the timeshare was personal use and it was sold at a loss, you technically may not need to report it, but the IRS won't know that you sold it at a loss, you should report it otherwise the IRS may assume you sold it at a gain (but the loss will not be deductible).