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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.

Rule Your Retirement Home Fool
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