Received money from backrupt timeshare that is less than what we paid. What form do I use to claim this loss?

[MichaelL1 · Accepted solution]

If the timeshare was used for personal purposes such as vacations, then a loss is not deductible because no personal losses are allowed to offset taxable income.

If this was an investment with no personal use then you can enter your sale.  The information below will get you started in the right direction.

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)

If personal report this way.

If you received a 1099-S for this transaction, you will enter it as the sale of a capital asset. Just make sure that you report the basis equal to the amount being reported as proceeds from the sale so that the two amounts cancel each other out (resulting in zero "0" capital gain or loss on the sale)

If not personal and was an investment report this way.

To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button