Sale and purchase of timeshare vacation ownership

Forum|Forum|1 year ago
January 28, 2025
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We sold our Vistana vacation ownership (timeshare) and took all the money from that sale to buy into Marriott Vacation Ownership (timeshare) in the same transaction. We therefore received a 1009-S from Vistana . How do we report this to most effectively in Turbo Tax to minimize our tax burden? Also, what do we do about the Marriott purchase? Do we report it? We received a 1098 from Marriott for mortgage interest. Thanks.

TurboTax Premier Online

ThomasM125

You need to use the Form 1099-S to report the sale of a second home. Any gain on the sale will be investment income, taxable as capital gain income. Any loss will not be deductible since it is personal use property.

Follow these steps to enter the sale in TurboTax:

1. Navigate to Investment Income in the Wages and Income section of TurboTax

2. Choose the Stocks, Cryptocurrency, ... option

3. Skip the Import option

4. Choose the Other (land, second homes, personal items) option for investment type

5. On the screen where you enter the sale information, choose Second Home for the investment type and complete the rest of the entries

The mortgage interest is deductible as an itemized deduction. You can enter it in the Deductions and Credits section, then Your Home and then Mortgage Interest. It will only benefit you if you benefit from itemizing your deductions. Other than that, you don't need to report the Marriott purchase.

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