Loss on TS sale tax deductible?

[zdxlc9p6 Senior Member Find all posts View Profile Close zdxlc9p6]

We sold a timeshare this year. Naturally sold for less than we paid. Is the loss deductible on IRS1040?

[PigsDad Senior Member Find all posts View Profile Close PigsDad]

If it was for personal use, no.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

As PigsDad said. You can't claim a deduction when you sell a car for less than you paid for it. You can't claim a deduction when you sell a boat for less than you paid for it. You can't claim a deduction when you sell a pressure washer for less than you paid for it.

The only deduction available to you is if you donate the proceeds of your sale to a qualified charity. Then you can claim a deduction for the amount of your donation.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

To ensure you have the most up-to-date info, always check with your tax preparer or CPA.

You've already gotten great answers.

1)If the timeshare was purchased for the sole purpose of a rental business, there certainly may be deductions you can claim.
2) If the ownership was donated to a 501C organization, then the "fair market value" of the timeshare may possibly be deducted. One of the charities has been delivering a certified appraisal with their closing documents, otherwise you have to "determine" what is the value within the rules set up by the IRS.
3) If the primary purpose was your own personal usage and enjoyment- then your CPA will likely tell you that you cannot claim the loss.

The good news is that if this was a timeshare ownership you weren't using, you can tell yourself that you will be getting a "return" each year by no longer being obligated to pay the maintenance fees from now until the end of time!

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

You can however deduct real estate taxes on a timeshare.