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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I'm selling a Disney timeshare and feel sure I'll pay taxes.

Customer Question

I'm selling a Disney timeshare and feel sure I'll pay taxes. I'm active duty military and my home of record is Alaska. If I get say $6500 and my tax bracket is28%, I pay this % for taxes, right?
Also, I'd like to sell my home in Maryland and feel sure I could get $230K as I have put about 25K into the makup-- including windows. If I sale below but just enough to pay off the mortgage, can I take a loss on my taxes?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Hi and welcome to our site!
Regarding timeshare...
Generally we need to start with your basis - that is mainly your purchase price - assuming the timeshare was purchased.
Then you calculate your gain which is equal to (selling price) MINUS (basis) MINUS (selling expenses)
That gain will be added to your other taxable income.
If you held the property more than a year - the gain woudl be long term capital gain - and will be taxed at reduced rates - depending on your total income it might be 15% or 20%.
.
Similarly you will determine the gain or loss on your home.
We would need to start with your purchase price - that is your basis.
The basis will be adjusted by improvements and sale expenses, and the gain/loss is calculated as
(selling price) MINUS (adjusted basis) MINUS (selling expenses)
If you have loss - that loss may not be deducted for personal home, but if that is a rental property - the loss may be deducted.
If you have a gain - it will be taxable,
but if that is your primary home - under certain circumstances the gain may be excluded from taxable income.
The mortgage balance would not be relevant in calculating the gain.
Let me know if you need any help with reporting.