Losing money on a timeshare?

timeshare

People paying full retail price for a timeshare rarely make a profit.

NEW YORK (Money Magazine)

I bought a timeshare in 2004 for $27,500 and sold it for $7,500 in 2013. Will I be allowed to take a capital loss? — Gary P., Ohio

Sorry. As is the case with a home, car, or boat, timeshares are nearly always treated by the IRS as a personal asset, says Gil Charney, tax research analyst at H&R Block. Thus, losses aren’t deductible.

On the other hand, had you sold your timeshare at a profit, the IRS would take a much greater interest in the deal: You’d be taxed on the gain.

People paying full retail price, however, rarely profit, since prices typically drop on the resale market.

Related: Feds crack down on timeshare scams

Buyers can find better values there, says Lisa Ann Schreier, author of Timeshare Vacations for Dummies.

But buyer beware: Get proof that taxes and maintenance are paid, and that the title is clear. To top of page

Advertisements

About PortlandHouseListings.com - Tom Ramsey, local Realtor

Local Portland Realtor with 10 years experience specializing in residential sales and investment property. Tom Ramsey Oregon Real Estate Principal Broker John L Scott Real Estate Phone: 503-481-0501 tomramsey1@gmail.com www.PortlandHouseListings.com
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s