I paid $70K for a Shell Timeshare. Shell Vacations repossed the timeshare as we were unable to resolve a dispute regarding maintenance fees. Is any portion of our investment deductible?

The Timeshare that you own for personal use is treated as a capital asset. Per the IRS tax codes, a loss on the sale of a personal asset is not deductible and therefore, your loss on the repossession of the Timeshare is treated as a Personal Loss and not deductible on the tax return. However, this treatment is in contrast to a situation where the sale of the Timeshare generates a gain or a profit. In this situation, the gain on the sale of the timeshare is taxable and reported on Schedule D of the tax return.

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