Bear with me please as I continue to research for IRS ruling of loss allowed on this type of property.
Since you generally can not claim a deduction on your dues to such an organization I want a definite ruling on allowable loss on the sale.
It was an equity membership...Subject to market conditions. I understand that dues
are not deductible, but dues are not my question. Sale of an asset at a loss + sales
expense + transfer fee expense.
Yes, I understand that, I just wanted to make sure that what I am about to advise is an interpretation that will not be misleading down the road.
Your transfer fee expense would be included in the equation if it was a normal and usual fee for all acquisitions of this nature from the club. In other words as long as everyone had to pay the same then yes you can use it against the sell.
Sells expense was not something that I was looking into, the expenses of taxable sales are generally and usually used at time of sale and includeable.
I appologize for making you wait and since you already paid I am going to mark this as information needed so you do not pay again.
So I have it correct 12500 LT loss, 1100 sales expense, 5000 transfer fee expense.
All sales are subject to a 5000 transfer fee. Thankyou
Yes, would handle it that way.