Wyndham is closing a handful of legacy resorts - dedicated chart/tracker located in the first post for this unfolding set of events

[robbie0001]

Anyone who thinks a loss on the sale of a timeshare is tax deductible should see IRS Topic 409.

Topic no. 409, Capital gains and losses | Internal Revenue Service

IRS Tax Topic on capital gains tax rates, and additional information on capital gains and losses.

www.irs.gov

"Losses from the sale of personal-use property, such as your home or car (or timeshare), aren't tax deductible."

Depends how the personal property is used. You originally said "personal asset". Use is the defining characteristic. Personal property, if used for a trade or business purpose, is deductible. There are some other situations (though rare) as well.

 

[chapjim]

This Declaration has been superseded by the 20% quorum, 2/3 requirement.

Yes, I know. See Post #1814.

 

[chapjim]

Received proxy forms for a OIRC September 10 Special Meeting. Purpose is "for the members to discuss and vote on whether to authorize the Board of Directors to take all necessary or appropriate actions to (i) suspend occupancy at the resort by members, guests and others as of December 31, 2025 (or shortly after as deemed necessary or proper by the Board of Directors; (ii) suspend collection of 2026 maintenance fees; (iii) waive the funding of reserves for 2026 pursuant to Section 721.13(3)(c)3., Florida Statutes; (iv) refund to members 2026 maintenance fees received by the association; (v) immediately suspend reservations at the resort subsequent to December 31, 2025; and (vi) pursuant to Section 721.13(3)(c)2., Florida Statutes, transfer reserve funds of the Association in the amount of $4,595,367 to pay operating expenses and costs of the Association as set forth in any approved budget for the Association. [emphasis mine]

Edit: The August 5 Special Meeting decided three questions (file Chapter 11, retain professionals, and further actions). The lowest percentage of Yes Votes was 98.74%. So it really doesn't matter if or how any particular (non-corporate) owner votes.

 

[paxsarah]

From your reference:

Is the loss on the sale of my home deductible?​

Answer:​

Maybe. A loss on the sale or exchange of personal use property, including a capital loss on the sale of your home used by you as your personal residence at the time of sale, or loss attributable to the sale of part of your home that is used for personal purposes, isn't deductible. The only deductible losses associated with property (or a portion of property) are losses on property used in a trade or business, losses resulting from a transaction entered into for profit (for example, a loss on the sale of stock), and certain casualty losses. Until 2025, the only deductible casualty losses are those resulting from federally declared disasters.

Yes, if you use it directly for business. In that case, it isn't taking a capital loss on the sale of your personal residence, but on a business property.

Just like if you use your timeshare for business travel only and not personal travel at all. If you use it for personal use at all, it's extremely difficult for it to be reclassified as anything other than a personal item. (see TUG article by a CPA here: https://tug2.net/timeshare_advice/income_taxes_and_timeshares_from_an_accountant.html)

 

[paxsarah]

(i) suspend occupancy at the resort by members, guests and others as of December 31, 2025 (or shortly after as deemed necessary or proper by the Board of Directors;

Ooh, we're finally getting close to the moment I've been waiting for - Wyndham canceling my April reservation! I can't wait to see how or if they notify owners with reservations about the cancellations.

Given that OIRC was the first out of the gate on this process and yet its 2026 reservations are apparently not going to be dealt with until mid-September at the earliest, imagine how long this will drag on for all of the other resorts - and how many owners are not on TUG or FB groups and will be completely blindsided when their 2026 plans go poof.

Speaking of Facebook, someone on there pointed out that the resorts that are expected to close are also blocked from RCI bookings in 2026 (in addition to Extra Holidays, which RENTER pointed out long ago). I checked a couple (but not all) and it seems to be true.

 

[CO skier]

For those who originally purchased from the developer, they will receive a long-term capital loss which will reduce their tax liability.

a home is a personal asset as well, and taxed based on income gained (or lost)

Here you made blanket statements for all cases.

Depends how the personal property is used. You originally said "personal asset". Use is the defining characteristic. Personal property, if used for a trade or business purpose, is deductible. There are some other situations (though rare) as well.

When wrong, you bring in rare, edge cases that apply to less than 1% of owners at the closing timeshares. You do not understand the difference between "personal asset" and "capital asset" for tax purposes.

For those who originally purchased from the developer, they may receive a long-term capital loss which will reduce their tax liability depending on how the timeshare has been used (ie, for "business purposes").

Then you modify the original blanket statement. At least you learned something.


Safe to say for 99% of the timeshare owners involved, any loss from the sale of the timeshare is not tax deductible.

 

[Rolltydr]

Here you made blanket statements for all cases.



When wrong, you bring in rare, edge cases that apply to less than 1% of owners at the closing timeshares. You do not understand the difference between "personal asset" and "capital asset" for tax purposes.



Then you modify the original blanket statement. At least you learned something.


Safe to say for 99% of the timeshare owners involved, any loss from the sale of the timeshare is not tax deductible.

I'm not a tax attorney, or any other kind of attorney, but if your timeshare contract states your timeshare can't be used as a for profit rental business, doesn't that mean it can't be used for a business purpose and, therefore, it couldn't be a personal asset, or capital asset, or any other asset term you want to use?

 

[Jan M.]

I don't know if this is related, but Wyndham notified the board at Kauai Beach Villas that they are terminating the Pahio management contract with the resort at the end of the year. (Pahio is owned by Wyndham.)

As you may recall, Kauai Beach Villas is the Kauai resort that is falling apart due to poor construction and maintenance issues, with an estimated $67 million dollar special assessment needed to correct all of the issues. 2 of it's 3 oceanfront buildings have been closed, stripped of their landscaping and irrigation systems, and allowed to fall into serious disrepair.

The board is holding an election on Sept. 19th for owners to vote on Chapter 11 bankruptcy.

KBV is a unique and unfortunate situation. The resort, in addition to the timeshare units, has a number of privately owned units/condos in the other buildings with people living in them as their homes. For them unfortunate doesn't even come close to describing their situation!

KBV voted out Wyndham as their management company back around maybe 2016-2018. Within a year or two they brought Wyndham back. Is Wyndham withdrawing this time or was voted out again? I'd think they'd be withdrawing this time on the advice of their legal team to disassociate the company with the ongoing legal issues. It makes sense that their legal team's advise would be to withdraw to avoid claims of a conflict of interest and to keep the company out of the ongoing owner complaints and drama.

From what we know those two oceanfront buildings were declared unfit/unsafe for occupancy, not feasibly repairable, and condemned. Also didn't Hawaii/Kauai say that because of their proximity to the ocean they can't demolish those buildings and rebuild on those spots/lots? The cost of demolishing them is significant and hasn't proceeded because everything is tied up with the ongoing lawsuits and unpaid assessment monies needed to do the work.

We enjoyed our stay at KBV. In DH's opinion the tree lined road into the resort rivals the Tunnel of Trees tourists pay to do. That, the central location on the island for doing the various tourist things, and short distance from the airport, Costco, shopping, make the resort a real gem.

 

[paxsarah]

Speaking of Facebook, someone on there pointed out that the resorts that are expected to close are also blocked from RCI bookings in 2026 (in addition to Extra Holidays, which RENTER pointed out long ago). I checked a couple (but not all) and it seems to be true.

I've now checked them all and it's not completely accurate. Patriots' Place and Star Island (and yes, it's the Club Wyndham listing for it) have exchanges that start in January or later. And several locations have late December exchanges that would end past January 1.

 

[CO skier]

I'm not a tax attorney, or any other kind of attorney, but if your timeshare contract states your timeshare can't be used as a for profit rental business, doesn't that mean it can't be used for a business purpose and, therefore, it couldn't be a personal asset, or capital asset, or any other asset term you want to use?

I am sure that the timeshare intervals at the closing resorts will be treated as an asset for tax purposes, and owners who ride it out to an eventual sale and payout will receive a Form 1099 of some kind in the year of the resort sale distributions. The owners will be responsible for reporting the 1099 income on their tax return for that year.

 

[bizaro86]

I'm not a tax attorney, or any other kind of attorney, but if your timeshare contract states your timeshare can't be used as a for profit rental business, doesn't that mean it can't be used for a business purpose and, therefore, it couldn't be a personal asset, or capital asset, or any other asset term you want to use?

I don't think it's likely that timeshare rules impact your taxes. If someone is running a rental business (whether that's allowed or not) the IRS wants their cut. They nailed Al Capone for not paying tax and the rules he broke were somewhat more serious.

And if someone has been running their timeshares as a business and paying the appropriate tax all the way through then they can probably claim a capital loss on any disposition.

I do think the above probably applies to much less than 1% of all TS owners though.

 

[Rolltydr]

if someone has been running their timeshares as a business and paying the appropriate tax all the way through

I do think the above probably applies to much less than 1% of all TS owners though.

I think the first quote is a big IF and agree with you completely on the second!

 

[bnoble]

Is Wyndham withdrawing this time or was voted out again?

With the caveat that I have not read the ballot yet: the language posted so far suggests withdrawal.

Breaking news from KBV board

I listened in also. And there was a little bit of news. They started work on building G, and have found on taking apart the spalling that the damage is worse than anticipated. It was the chairman’s speculation that it would take the whole 3.7 million that they raised in the small special...

tugbbs.com

 

[FL Guy]

I have a stay booked at Fairfield Mountains in Lake Lure the last week of October (hoping to catch fall foliage). I have a 2-bedroom lock off and a 1-bedroom deluxe unit booked. (May or may not keep the 1-bedroom unit booked, depending upon whether friends are going to join us.) I know there are different sections: Fairways on the Mountains, Fox Run, Mountain Loft, and Maple Ridge. Any recommendations on which section I should request? (I know, "no guarantees".) I've read several of the reviews on TUG and some are quite critical, while others aren't as much, so I'm not sure if the difference is section-related, or "luck-of-the-draw" whether your specific unit is better or worse. Thanks!

 

[rapmarks]

a home is a personal asset as well, and taxed based on income gained (or lost)

Can’t deduct loss from personal home on income tax

 

[Jan M.]

I have a stay booked at Fairfield Mountains in Lake Lure the last week of October (hoping to catch fall foliage). I have a 2-bedroom lock off and a 1-bedroom deluxe unit booked. (May or may not keep the 1-bedroom unit booked, depending upon whether friends are going to join us.) I know there are different sections: Fairways on the Mountains, Fox Run, Mountain Loft, and Maple Ridge. Any recommendations on which section I should request? (I know, "no guarantees".) I've read several of the reviews on TUG and some are quite critical, while others aren't as much, so I'm not sure if the difference is section-related, or "luck-of-the-draw" whether your specific unit is better or worse. Thanks!

Log into your account and click on modify for each reservation. You aren't going to actually modify anything. Click on reservation details when it takes you to the modification screen. You should be able to see which section your reservation is in. Depending on what section you booked, you might not be able to request a different section.

We've only stayed in Maple Ridge both times we were there.

 

[FL Guy]

Log into your account and click on modify for each reservation. You aren't going to actually modify anything. Click on reservation details when it takes you to the modification screen. You should be able to see which section your reservation is in. Depending on what section you booked, you might not be able to request a different section.

We've only stayed in Maple Ridge both times we were there.

Thanks!! Looks like both are in Maple Ridge.

 

[bellesgirl]

Received proxy forms for a OIRC September 10 Special Meeting. Purpose is "for the members to discuss and vote on whether to authorize the Board of Directors to take all necessary or appropriate actions to (i) suspend occupancy at the resort by members, guests and others as of December 31, 2025 (or shortly after as deemed necessary or proper by the Board of Directors; (ii) suspend collection of 2026 maintenance fees; (iii) waive the funding of reserves for 2026 pursuant to Section 721.13(3)(c)3., Florida Statutes; (iv) refund to members 2026 maintenance fees received by the association; (v) immediately suspend reservations at the resort subsequent to December 31, 2025; and (vi) pursuant to Section 721.13(3)(c)2., Florida Statutes, transfer reserve funds of the Association in the amount of $4,595,367 to pay operating expenses and costs of the Association as set forth in any approved budget for the Association. [emphasis mine]

Edit: The August 5 Special Meeting decided three questions (file Chapter 11, retain professionals, and further actions). The lowest percentage of Yes Votes was 98.74%. So it really doesn't matter if or how any particular (non-corporate) owner votes.

I own week 52, which begins on December 27, 2025. It was deposited with RCI and, as far as I can tell, my associated points (TPUs) are still available. I raised the question at the Aug 5 meeting and was told they would be honoring all 2025 weeks including those ending in 2026.

But that is not what the proxy vote says: suspend reservations at the resort subsequent to December 31, 2025. I am not a lawyer but that is the way I read it. If they will not honor the full week, someone is going to be short changed.

 

[chapjim]

I own week 52, which begins on December 27, 2025. It was deposited with RCI and, as far as I can tell, my associated points (TPUs) are still available. I raised the question at the Aug 5 meeting and was told they would be honoring all 2025 weeks including those ending in 2026.

But that is not what the proxy vote says: suspend reservations at the resort subsequent to December 31, 2025. I am not a lawyer but that is the way I read it. If they will not honor the full week, someone is going to be short changed.

Look at item (i) about suspending occupancy in my post. Sounds like they are open to people staying until January 3 or 4. At least that's my take on it.

 

[Sandi Bo]

I'd still have a backup plan. And might be slightly paranoid about leaving my room after the 31st and the key still working when I returned.

 

[chapjim]

I'd still have a backup plan. And might be slightly paranoid about leaving my room after the 31st and the key still working when I returned.

I'd agree with you if it were Wyndham corporate running the resort! But if the resort says I'm good until January 3, I wouldn't be concerned about getting back into my unit after 12/31.

Things should settle out in the next few weeks.

 

[HitchHiker71]

Not necessarily. Often in these situations, mangement will offer a "completion bonus" who finish out their time. It's not unlike what many seasonal operations do to keep workers in the last few weeks.

Yes, but even with this, a bird in the hand is worth more than two in a bush right? Even with a completion bonus/severence, if you can find a job now, best to take it while it's offered, because it may not be offered in the future, and jobs in more remote and rural areas where many of these resorts are located aren't easy to come by from what I've observed.

 

[HitchHiker71]

What makes this different than the others on the list? Curious why not include it?

Confirmed with Wyndham, the KBV Pahio resort issue is not in any way related to the actions being tracked in this thread.

 

[HitchHiker71]

Patriot's Place is scheduling a special board meeting next week to discuss next steps pertaining to the closing of the resort, so hopefully we should have more feedback on the path forward at PP either next week or the week after. I suspect many of the other resorts on our list are taking the same steps over the next 1-2 weeks, so with a little luck we should have some substantive updates to share in this thread and be able to provide updates to our tracking table as well.

 

[Arimaas]

I was just thinking, since we are pushing up on September and no major announcements yet, for next year, since I think most of us prepay a year in advance, I wonder if Wyndham will just let you keep the 2026 points that are already credited to your account, and not refund the money prepaid. I've been borrowing against them with some last minute sale bookings, and will likely roll them on January 1 into 2028 to try to preserve them in case they do go poof, since most of my reservations are made already for 2026.

I am not taking the CWA swap, since I don't think it has value, for me.