My wife and I purchased a time share in Mexico in 2005 - this was our second time share purchase, the first having been located in the US
and purchased in the 1990's.
Unfortunately, due to the erosion of security in Mexico in the years after purchase, and the fact that we had another to use, we never used the Mexico unit.
Rather than continue to have to pay maintenance fees, we returned the unit to the timeshare company in 2015, writing off the full purchase price of the unit.
My research shows in most cases that time share losses cannot be deducted, but I have found some info from a credible source indicating that if the unit has not been used by the owners, and has only been rented to others, that the loss is deductible
as an ordinary (non-capital) loss.
Specifically, I’m looking for confirmation that I can I write off the loss, which I would calculate by taking current market value, less what I realized on surrender ($0).
Thanks very much for your help with this.