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Re: Successful Resales & Rental Feedback Wanted (by Beck):

@maryanne, ok provide the date your sale was recorded and last name, I'll look up the sale price listed on your deed.

As for tax loss, google "Irs deduct loss on sale of real property" and the very first link says it all: http://www.google.com/m/url?client=ms-android-verizon&ei=Lkv-TOiDK4SEqQO5x6IK&q=http://www.irs.gov/publications/p17/ch14.html&source=android-home&ved=0CBIQFjAA&usg=AFQjCNHAmCxFQB__bTRfq_k9pJCs3708HA

"Personal Use Property

Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain. However, you cannot deduct a loss from selling personal use property." This rule applies to real property such as your home, vacation home, timeshare.

IRS publication 544 clarifies the deductibility of property, specifically the only way is if you can clearly and specifically demonstrate the property was used to generate taxable income, and as I see it that means you would have had to report the rental use of your unit on your tax return in prior years. Especially since vacation homes have a two week rental income exclusion from taxes, it is unlikely any owner reports taxable income on their tax returns for timeshare rentals. Even if they did, it is my opinion the IRS might still determine your capital loss is not deductible specifically because your reported income is not considered investment income. Only an owner similar to me, who owns dozens or hundreds of units with the specific goal to profit from renting units or buying / selling and reports such on their tax return, is likely to be able to deduct capital losses.

And if you really did deduct the loss, the only reason the IRS hasn't notified you your 2009 entry is invalid is because they haven't noticed it yet. My best guess is roughly 2012 / 2013 when they do the three year audits is when they will most likely notice.