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September 7, 2022
Question

Where do I enter the 1099-S for sale of Time Share at a loss? Turbo Tax requires a Schedule E Worksheet but it doesn't apply.

  • September 7, 2022
  • 1 reply
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I owned the Wyndham Resorts time share for over 5 years. It is deeded and recorded.  They purchased back my shares, at a loss to me and issued a 1099-S.

1 reply

September 7, 2022

Losses on Sale of Personal Use Timeshares are Not Deductible. So since you got a 1099-S you report it but set the cost equal to the selling price. The same as you would if you sold your personal residence at a loss and got a 1099-S

Losses on Sale of Timeshares Used as Rental Property May Be Deductible if: 

the timeshare qualifies as rental property then losses incurred on its sale are deductible. However, this is rarely possible. A timeshare will qualify as a rental property only if:

  • it was rented at fair market value to unrelated parties for 15 days or more during the year, and
  • its owners did not personally use it for more than 14 days per year or 10% of the total days rented, whichever is greater.

When determining the rental and personal use days for the 15-day, 14-day, and 10% cutoffs, you must include the combined use of all the owners of the timeshare unit. The result is that personal use by any owner of a timeshare is considered personal use by all of the owners.