CANADIAN SELLING A US TIME SHARE
I am a Canadian who bought a time share in Las Vegas. What happens when and if I sell it?
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david ingram replies:
I was involved with Resort Condominium International back in 1972 when Adventures West in Whistler was the first member in Canada. And then again in the St Ives project at the Shuswap in 1976.
And, although I have known of Blue Mountain Resort and Myrtle Beach Time Shares to sell at a profit, the usual situation is that you will lose money on the deal.
Because it is real estate based, you (and your spouse if two owners) will need to file a 1040NR tax return to report the sale. There could / would be a $1,000+ fine for not filing the return.
Nevada, Florida, Texas, etc. does not have a state return but if you were selling in Palm Springs, Phoenix, Myrtle Beach, Hawaii, Colorado or Vermont you would be filing a state return as well.
Selling is a problem because the Time Share selling organizations charge an arm and a leg.
Consider something like http://www.sellmytimesharenow.com/ where some $15,000,000 a month of timeshares are resold or rented.
Watch out for a situation where you sell it to a friend in Canada however. You have still made a sale and it must be reported on the US 1040NR even though no money changes hands in the US. This still applies where you get NO CASH because some friend or relative just takes over your payments.
---------------------------------
david ingram replies:
I was involved with Resort Condominium International back in 1972 when Adventures West in Whistler was the first member in Canada. And then again in the St Ives project at the Shuswap in 1976.
And, although I have known of Blue Mountain Resort and Myrtle Beach Time Shares to sell at a profit, the usual situation is that you will lose money on the deal.
Because it is real estate based, you (and your spouse if two owners) will need to file a 1040NR tax return to report the sale. There could / would be a $1,000+ fine for not filing the return.
Nevada, Florida, Texas, etc. does not have a state return but if you were selling in Palm Springs, Phoenix, Myrtle Beach, Hawaii, Colorado or Vermont you would be filing a state return as well.
Selling is a problem because the Time Share selling organizations charge an arm and a leg.
Consider something like http://www.sellmytimesharenow.com/ where some $15,000,000 a month of timeshares are resold or rented.
Watch out for a situation where you sell it to a friend in Canada however. You have still made a sale and it must be reported on the US 1040NR even though no money changes hands in the US. This still applies where you get NO CASH because some friend or relative just takes over your payments.
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