Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121260  
Subject: Re: Timeshare write off Date: 12/22/2010 9:59 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
My wife and I purchased a timeshare in Las Vegas 5 years ago before the birth of our first child (4 yrs ago) looking at it as an investment and possible renting it the years we did not use it. We have since listed it with 2 or 3 different companies to sell/rent (We have learned our lesson and no longer listen to them) with out any luck. I had a company (Timesharebailout) tell me that for 3500, they will transfer the deed out of our names and we will be rid of the timeshare. They also said that I would be able to deduct the original cost of the timeshare and the fee they charge off my taxes for the next 6 years (3000/yr). Are they telling me the truth?

Welllllllllllllllllll, it depends. Are you telling us the truth? Can you tell us with a straight face that you bought this as an investment and not for personal use which, because your circumstances have changed, it no longer fits?

Now, DGMW, people make stupid investments every day. A quick glance at my portfolio proves it. So the mere fact that 5 years ago most people had realized that time shares are a money pit with no reward doesn't mean the law required you to realize same.

It comes down to facts and circumstances. If it was an investment property you have a capital loss if you dispose of it for less than your adjusted basis. If it was personal use property you get no loss on your tax return. Since it comes down to intent those things that can be proved, e.g., your usage, rental usage, and treatment of the property on your intervening returns, are more important.

Not that you asked, but taxes aside, have you found out whether you can just walk away from it without any further personal liability? That would seem to me better than paying someone to take it off your hands.

Phil
Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement