How to Get Out of a Timeshare: The "Deedback" Strategy vs. Exit Scams
Автор: The Finance Observer
Загружено: 2026-01-19
Просмотров: 2
Описание:
You paid $25,000 for a Timeshare. It is now worth $1 on eBay. Can you deduct the $24,999 capital loss on your taxes? The answer is almost always NO. The IRS views your timeshare as "Personal Furniture," not Investment Real Estate.
As The Finance Observer, I’ve performed a forensic review of IRS Publication 544. In this video, we dissect the "Personal Use Rule", why converting to a rental triggers the "Lesser of Rule" (wiping out your deduction), and the only safe way to exit a contract without getting scammed (The Deedback).
FORENSIC BREAKDOWN:
0:00 The $1 Reality: Why Timeshares lose 99% of their value
1:15 The IRS Rule: "Personal Use" property losses are NOT deductible
2:40 The "Rental Conversion" Trap: Why the "Lesser of Rule" kills your basis
4:00 The "Hobby Loss" Trap: Paying tax on rental income without deductions
4:40 The Murtaugh Exception: Why owning 13 weeks (Business) is different than 1 week (Personal)
5:45 The Exit Scam Warning: Why you should NEVER pay an "Exit Company"
6:15 The Solution: How to execute a "Deedback" or "Voluntary Surrender"
DISCLAIMER: I am The Finance Observer. This content is for educational purposes only. Timeshare taxation depends on personal use vs. rental history; always consult a qualified tax professional.
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