mcb39 Posted February 5, 2010 Report Share Posted February 5, 2010 New client sold Timeshare at a large loss.; (of course). Purchaser told him that he could recapture the loss over the next five or so years; which, of course, refers to the Capital Loss limitation of $3000 per year. I haven't been able to find anything that addresses this exact subject other than a description of what a Timeshare is. Have any of you had experience with these and , if so, is the Capital Loss allowed? Quote Link to comment Share on other sites More sharing options...
chuck Posted February 5, 2010 Report Share Posted February 5, 2010 Time share is like second home no loss allowed. Might have the purchaser of his time share do and sign his taxes. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 5, 2010 Author Report Share Posted February 5, 2010 Time share is like second home no loss allowed. Might have the purchaser of his time share do and sign his taxes. That's kind of the direction in which I was leaning. Anyone else? Before I Break the News. Quote Link to comment Share on other sites More sharing options...
chuck Posted February 5, 2010 Report Share Posted February 5, 2010 break the new no loss allowed. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 5, 2010 Report Share Posted February 5, 2010 Personal loss ... not deductible. taxbilly Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 5, 2010 Author Report Share Posted February 5, 2010 Personal loss ... not deductible. taxbilly Thanks guys.....BTW, taxbilly, I had my other eye done on Wed. Am still struggling a little, but all "looks" positive. No more drops for the first one. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 6, 2010 Report Share Posted February 6, 2010 You'll notice it to be better day after day. My left eye is 20/15 and my right eye is 20/20. Maybe I can get a job at the airport as an X-ray machine. :~) taxbilly Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 6, 2010 Report Share Posted February 6, 2010 New client sold Timeshare at a large loss.; (of course). Purchaser told him that he could recapture the loss over the next five or so years; which, of course, refers to the Capital Loss limitation of $3000 per year. I haven't been able to find anything that addresses this exact subject other than a description of what a Timeshare is. Have any of you had experience with these and , if so, is the Capital Loss allowed? Not so fast -- was this personal use? Then yes, no loss allowed. But I've known folks who bought timeshares as rental units; never stayed in them, but had a deal with the timeshare property or local realtor to treat as vacation rental property. Mainly these folks had multiple weeks owned (in some cases, wholly-owned -- like owning a rental house with on-site maintenance and security). If that was the case, then it was investment property and would be treated like sale of investment real estate, I should think. Lots of questions, though, as mostly these are personal use units. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 7, 2010 Report Share Posted February 7, 2010 Cathrine is right, IMHO, we should not just assume that it was personal, without at least asking. I have one client that has owned a timeshare for 15 years, and never used it personally after the first year, but has rented it out every year since. It's totally 'investment property' to him. Although he's not about to sell, as he has made a profit on it all the last 8 years. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 7, 2010 Author Report Share Posted February 7, 2010 I WILL ask. However, since this is a new client, I know very little about him except what he told me when he set up his appt. He has some other serious issues also and can use all the help he can get. I would guess that the buyer was pushing for a quick sale at a low price to have told him that. Thanks for the input. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 7, 2010 Report Share Posted February 7, 2010 For new clients, I ask for the previous year's return. If you see that he was renting the time share and reporting rental income on his previous return, you should feel confortable calculating the loss. You should have a lot of questions for this new client. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 7, 2010 Author Report Share Posted February 7, 2010 I rarely accept a new client without a copy of the previous year's return. In fact, I rarely accept a new client as I work alone and don't want more than I can handle comfortably. This is a referral from his son who is a long-time client. So far I have only spoken to him on the phone. Quote Link to comment Share on other sites More sharing options...
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