The IRS Audit Blog

Archive for December, 2006

NORTH TONAWANDA: Tax evasion charges filed against NT man

A North Tonawanda tax preparer was indicted Thursday by a grand jury and has been charged with 34 counts of tax fraud evasion charges.

Congressman Jim Marshall (D-GA) Town Hall Meeting, Sept. 26 2009 10

Question: Can you claim as a loss on Schedule D of IRS forms the sale of a Time Share.?

If you purchase a time share and wish to sell it and the only way to do this is to sell it at a loss or give it away, can you claim what you originally paid for the time share, which is deeded, as a loss on Schedule D. The deed has been registered in the state in which the time share is located. We have used the time share for our own use, and have not rented it.

Answer: Any profit on the sale of your timeshare is taxable. If you sell at a loss, the loss is normally not deductible.

Profit on sale is treated as capital gain, subject to favorable tax rates if owned for more than one year. For gain purposes, your cost is generally your original cost, plus additions for the following items: (1) closing costs incurred when you purchased your timeshare, (2) the portion of your annual maintenance fee (for all years owned) allocated to capital reserves or used specifically for capital improvements (such as a new roof), and (3) any special assessments for capital improvement purposes which you paid. This amount should be reduced by any depreciation expense in years you rented the timeshare.

If you (and/or relatives or friends) use the timeshare, exchange it or let it go unused, a loss on sale will be personal and not deductible, just as a loss on the sale of your home or your car would not be deductible. Even though your intent might be to hold it as an investment, your personal use results in no tax loss being allowed upon sale.

Notorious, lengthy FAFSA form gets easier

Jason Romero, a high school senior from Pueblo, has learned that applications for college scholarships often take longer than the college applications themselves.

Churches to defy IRS on sermons Church and State uniting?

A Look at 2010 and Beyond

Consumers cut back on a lot of things during an economic downturn, but they can only reduce their consumption of food and household products so much.

IRS Appeals, IRS Help

AZ oversight agency eyes SEABHS action

The agency designated by the state to manage publicly funded behavioral health services in Santa Cruz, Cochise, Graham, Greenlee and Pima counties is on the verge of issuing a corrective action plan to the embattled Southeastern Arizona Behavioral Health Services.

AROUND THE AREA: Local Events and Activities

The Tuttle Basketball Booster Club will meet in the gym lobby on Jan. 24 at 3 p.m.

Thousands Attend Tax Day Protests