I sold a timeshare and received a 1099-s

[tomsurdel-hotmai]

Sold a timeshare for 18000 and received a 1099-s

[PattiF]

You would enter this in your tax return using TurboTax Premier. The sale of a timeshare would be considered a second home.

1. Open or continue your return
2. In the search box, search for sold second home and select the Jump to the link
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2021? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the OK, let's start with one investment type screen, select Other, then Continue
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
6. On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale

• The drop-down boxes can be filled out with the details of the timeshare sale

1. Description - Timeshare address
2. Date sold - on 1099-S
3. Date acquired - from your records
4. Sale proceeds - on 1099-S
5. Cost basis - initial purchase price plus expenses of the sale such as closing costs.

Indicate if you ever used the property for business or as a rental. You are not able to take the loss on the sale if it was used for personal reasons.

[Caseyblue]

How is a loss handled?

[MonikaK1]

If you sold a vacation timeshare at a loss, and you had personal use of the property, the loss would not be deductible. If you didn't receive a Form 1099 reporting a sale of personal property at a loss, you don't need to report it on your return.

If you received a Form 1099, you can report it on your return as the sale of a capital asset. (Again, 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” if 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

[Caseyblue]

If I received a 1099k but the timeshare sale resulted in a loss, how is that handled?

I assume 1099k must be reported

[PattiF]

You would enter the 1099-K following the same instructions above detailed by MonikaK1  for a loss on a Second Home.

@Caseyblue 

[Lisak12]

I've been very confused by the two contradictory answers for this question.  On further Googling I find there are very specific boundaries to when you can claim timeshares as a second home to claim the loss.  You can't just "claim as a second home," unless you meet this criteria.  You must live in in it for a certain amount of time of the year or rent it out or somehow use it as a business.  If you had a timeshare  and used it once a year for a week to vacation you can't claim the loss.  Just another reason to be sad about owning the timeshare to begin with. 

Here's a link to what the IRS has to say if you want to take a deep dive or need a distraction from working  on your taxes:

https://www.irs.gov/pub/irs-pdf/p936.pdf