Because the IRS classifies a timeshare as a personal use property, when you sell it at a loss you cannot deduct the loss. However, if you sell it for a profit, you have to report the profit. In fact, you will receive a 1099 form that reports your sale proceeds to you and to the IRS.Click to see full answer. Subsequently, one may also ask, do I have to pay taxes on the sale of a timeshare?Any profit on the sale of your timeshare is taxable. 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.Additionally, can you claim timeshare on tax return? The money you pay to maintain the property may be tax-deductible, but only if you rent your timeshare. If you own the timeshare outright, however, you can’t deduct the maintenance fees. Simply so, how do I report the sale of a timeshare? Reporting the Sale In most timeshare sale situations, you will receive a Form 1099, reporting the gross proceeds of the sale. The gross sales proceeds are usually equal to your selling price before reduction for any sales commission and other closing expenses.Is a timeshare considered an asset?A timeshare is not an investment. A timeshare is not an investment, it’s a vacation. It’s also an illiquid asset that is likely to lose value over time. Ultimately, timeshares are like swimming pools, if you buy one, do so because you love the idea of owning it, not because you expect to make a profit.