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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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i recd a 1099-a form for a timeshare i purchased over a year

Customer Question

i recd a 1099-a form for a timeshare i purchased over a year ago... how do i know if i have to claim a loss or gain?
Submitted: 7 years ago.
Category: Tax
Expert:  Ed Johnson replied 7 years ago.

DearCustomer

 

To know if you will take a loss or gain use the following formula that I modified just for you.

 

Capital gains 1099-a = Box 4 - (orignal cost, + improvements, + major repairs) - costs incurred by you for the abandonment.

 

Note; there are usually no costs associated with this type of transfer of property unless the bank asseses them to you.

 

If box 4 is greater than box 2, you do not normally have cancellation debt income.

 

If box 4 is less than box 2, then you may be subject to receiving a form 1099-C and having cancellation debt income.

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