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If you used this timeshare property as a second home and you rented it less than 15 days during the year, the loss would be considered a non-deductible personal loss.
But, if you rented it out for greater than 15 days during the year, you could treat the sale as the sale of investment property and report it on your return under the Investment Income area of Wages & Income.
In either case, you would report the sale as follows. (TurboTax will ask you about how you used the property, whether for business, rental, personal, etc. and make a determination as to whether any loss is deductible)
If there was rental use, TurboTax will determine if you had a gain or a loss on this investment and determine if it was short- or long-term. If you have other capital gains, a loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Form 1040 and offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income). If the sale resulted in a gain, it will be taxed as capital gains.
If you used this timeshare property as a second home and you rented it less than 15 days during the year, the loss would be considered a non-deductible personal loss.
But, if you rented it out for greater than 15 days during the year, you could treat the sale as the sale of investment property and report it on your return under the Investment Income area of Wages & Income.
In either case, you would report the sale as follows. (TurboTax will ask you about how you used the property, whether for business, rental, personal, etc. and make a determination as to whether any loss is deductible)
If there was rental use, TurboTax will determine if you had a gain or a loss on this investment and determine if it was short- or long-term. If you have other capital gains, a loss will offset some or all of the gains. Otherwise, up to $3,000 of the capital loss will go to line 13 of Form 1040 and offset other income. The remaining loss over $3,000 will be carried forward each year until used up (applied to capital gains and/or ordinary income). If the sale resulted in a gain, it will be taxed as capital gains.
used as a vacation a few weeks a year, not second home? Wouldn't I type timeshare not second home?
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