Submitted By: Walter
Answered: August 5, 2014 8:30 am

I bought a time share in 2007 for $28,000 and sold it this year for $5,700. Can I deduct a loss?

If you bought the time share for personal use, then just as in the case of a sale of a principal residence, no loss is allowed. If you bought the time share for investment purposes, you may be able to take the loss as a long-term capital loss.

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Tax Glossary

Taxable income

Net income after claiming all deductions from gross income and adjusted gross income, such as IRA deductions, itemized deductions, or the standard deduction, and personal exemptions.

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