DVC as a lost - Tax write off?

[RayJay]

I bought DVC in 2002, later sold it for less.

Can I write off the Real Estate loss on a Schedule D?

Anyone ever deal with this?

Thanks
RayJay

 

[Jimbo]

I know that you can not take a deduction if you sell your primary residence at a loss. I can't imagine selling your timeshare at a loss would be any different.

 

[jel0511]

You can only deduct losses on the Schedule D from the sale of investment securities ie, stocks, bonds mutual funds. Timeshares, even though a real estate interest does not fall into this category. Also, since this wasn't your primary dwelling, no loss is deductable.

According to the IRS, you are not allowed to deduct losses on personal-use property. A timeshare would fall into that category.

 

[RayJay]

Thanks Jim and Jel

I really didn't think you could, but what peaked my interest was the 1099-S form I got the mail showing a proceed of $14700 from the sale of my DVC.

Not sure if I even have to report that.

RayJay

 

[Doctor P]

This is a sale of a real estate interest, as far as I know, and the 1099-S will be used to balance out the transaction for tax purposes. In general, any loss will not be tax deductible.

 

[JimC]

All real estate sales must be reported to the IRS and what is reported is the gross proceeds. You need to report the sale on your return as the IRS computers will look to match the reported gross proceeds to your return. If not found the IRS should send a notice asking for more information possibly requiring you to amend your return. Unfortunately, I believe you can not deduct the loss because this is personal property.

 

[KANSAS]

RAYJAY

do u mind if I ask, why u sold your DVC POINTS in less than 1 year?

I hope u r not in poor health??

 

[manning]

Jimc is right. of course you will not have to pay any taxes on the sale as it is a loss.