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.

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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