Selling a timeshare-taxes?
My husband sold a timeshare last year. He got it in a divorce settlement from his exwife. We filed our taxes and reported the loss, but do we need to file state taxes or anything in the state the timeshare was located in (Hawaii)? We live in Texas and have lived here for several years. I told him I thought the taxes on timeshares didn’t have much to do with income tax, but does anyone know what to do? We asked two tax preparers who did not know.
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Tagged with: divorce settlement • exwife • Hawaii • income tax • state taxes • tax preparers
Filed under: Selling Timeshare
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Reported the loss? You aren’t allowed to report a loss on the timeshare.
You deducted a loss on a time-share?
Oh boy… what were you thinkin’?
Better get that puppy amended and delete the loss. It’s not deductible.
A tax preparer who does not know is not much of a tax preparer. TX has no income tax, if memory serves, so that’s moot. While the property has a taxable situs in HI, the transaction was a loss, so no big deal. I’d only report to HI if you received a 1099 reporting the gross proceeds of the sale to you.
While you reported the sale, you cannot take a loss on personal property.
You should also file a non-resident Hawaii return so they don’t think you had a gain.
If you reported the loss due to the sale of your timeshare and you do not correct it, the government will gladly provide you with your own temporary living quarters. You can not deduct the loss from the sale of your timeshare anymore than you can deduct the loss from the sale of your car, or your dog. Unless that is, you used the timeshare 100Percent as a business investment as a rental unit. I sort of doubt that. Correct the loss and consider it one if life’s lessons. One that the American taxpayer does not want or need to share with you. Sorry. Oh and get new tax preparers, your cousins, neighbors, hairdressers, friend of a friend is not very knowledgeable.