"I haven't filed taxes since i stopped working over 10 years ago. Since then I've been on disability, so again no filing taxes. I only bring in $12,000 a year & was told I don't need to file so, should i have been filing all this time?
Now, I acquired timeshare during this time period & have paid it off & now am in the process of selling it. Since i spent all this time not filing taxes, what are the consequences of selling then filing or not filing? WHAT the heck do i do about all this? "
If you sell the timeshare at a gain (and I seriously doubt you will) then you will need to file a tax return.
If you sell the timeshare at a loss, then no need to file a return at all. Losses on the sale of personal property are not deductible.
Now, if after the sale you receive a 1099-S at tax time, then it doesn't matter if you sold at a gain or a loss. You would be required to file a tax return.
I sold two time share ownerships I held last year and after closing recieved two forms 1099-S. Each only shows the name of the property and the gross -- NOT net proceeds.
I followed the instructions I found on Turbotax to report these as sales of personal capital assets in the income section of my return. When I did that, Turbotax told me to input the net-- NOT gross proceeds (I had the net figure, which was on the closing memo I received after the sale) as well as the basis and date of original purchases of the ownerships. Turbotax then calculated my capital gains (yes, GAINS - which I had on both sales).
What I am concerned about now is other (and contradictory) information I have read in discussions here on the proper way to report a time share sale. Some are saying I should have inputted gross proceeds (even though is NOT what Turbotax instructed me to do) and then inputted the same figure into basis. And yet other information I found stated Turbotax would allow me to input sales expenses for the sales of those contracts, which would clarify when the return was processed why the net proceeds figure I provided was less than the gross proceeds figure on the form 1099-S. But I have not been able to find any section of Turbotax that allows me to input the sales expenses for these two transactions.
Bottom line: what is the proper to report a time share sale in Turbotax?
there is a lot of misinformation on these Boards. The only expert on these boards is Turbo Tax - that is why you buy their product (for their expertise among other things)
Why would you buy Turbo Tax if you thought it was wrong? That is why they have the guarentee - as long as you input the documents corrects and follow their instructions, they will compensate you against any penalties levied. If you don't follow their instructions, they will not pay.