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posted Apr 12, 2024 6:44:30 PM

Timeshare and 1099S form 2023

I received 2 Form 1099-S for timeshares that I upgraded in 2023.  Not sure why they were issued as I didn't have any capital gains.  It was just an upgrade, and they took over my old timeshare and gave me a new one.  How is this reported on the 1040 form and it this taxable (the amounts listed on the form 1099-S.  I do not rent out my timeshares and it is only used by myself.  

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1 Replies
Expert Alumni
Apr 15, 2024 9:32:45 AM

This would be considered a sale of investment property because there is no 'trade' allowed for this type of personal use property.  

 

The value of the property received is the selling price of the old timeshare, trade date would be the sales dates. The cost basis is what you paid for the original time share and the date acquired.

 

The timeshare sale can be entered into TurboTax CD or Desktop and TurboTax Online version by following the steps below.

  1. Open your TurboTax account > Select the Personal tab then Personal Income > I'll choose what I want to work on
  2. Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
  3. Add or Edit your sale that is NOT reported on a Form 1099-B > Select to enter a summary of each sale (you only have one)
  4. Enter the Total Proceeds > Cost Basis (includes any capital improvements while you owned the property)
  5. Enter the holding period - if you owned the property for more than one year the it is long term, one year or less is short term
  6. Continue to finish your sale.  

The gain from the sale will be fully taxable because a timeshare is not eligible for any special tax treatment.