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1099-S

cissy

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I received a 1099-S form for the sale of my timeshare week. The gross proceeds were less than my purchase price, so there was no capital gain. Is it necessary to report this on my tax returns? I found information on the sale of second homes, but I wouldn't consider a week in a time share the equivalent of a second home.
 

emeryjre

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Generally the IRS wants a person to report the sale of an "asset". I am sure there would be a big debate on the classification of a timeshare as an asset.
 

bogey21

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I received a 1099-S form for the sale of my timeshare week. .Is it necessary to report this on my tax returns?

You better. The IRS gets a copy of the form. If you don't report it on your Tax Return, it is likely you will get a bill from the IRS a year or 2 from now showing you owe taxes based on the full amount on the 1099-S. Report the sale and make sure it shows no profit to be safe...

George
 
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PigsDad

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You better. The IRS gets a copy of the form. If you don't report it on your Tax Return, it is likely you will get a bill from the IRS a year or 2 from now showing you owe taxes for the full amount on the 1099-S. Report the sale and make sure it shows no profit to be safe...
This. If the total income from all your 1099's are not reported on your tax filing, that raises a red flag at the IRS -- this is an automatic process, not part of the pseudo-random audit selection. It doesn't matter if you don't owe taxes on that income, you must report it. I personally was hit by a situation like this (actually, TurboTax had a bug that decided not to report a stock sale since there was no gain or loss on the sale), and it took about a year and many letters back and forth to the IRS to clear it up.

Kurt
 

bluehende

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Report it along with the cost basis and claim no loss. If it looks weird I have sent a note with the return and have never been questioned. If you file online make sure the description of property clearly says timeshare and you should be fine.
 

Brett

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Report it along with the cost basis and claim no loss. If it looks weird I have sent a note with the return and have never been questioned. If you file online make sure the description of property clearly says timeshare and you should be fine.

^^ I agree with this
 
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