If we sell our Timeshare in Mexico what is our tax liability?

Forum|Forum|1 year ago
June 26, 2024
1 reply
0 views

No text available

Ask the Experts - Retirement II - June 2024

marctu

A timeshare or vacation home is considered a personal capital asset and the sale is reported on Schedule D Capital Gains or Losses. A gain on such a sale is reportable income. If you incurred a loss on the sale, the IRS doesn't allow you to deduct the loss. Knowing what I know about timeshares, I am assuming it will be a loss though I am hoping that it is a gain. If you have had the timeshare for more then a year then it would be a long-term capital gain. If less then a year then it would be a short-term capital gain.

Thanks again for the question @Sedutra

All the best,

Marc

Employee Tax Expert

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

SedutraAuthor

We have owned it for over 15 years (if not more) so what difference would that make to how much we would owe? It will likely be a loss of income upon the sale.