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"Forgiven" timeshare loan will have tax consequences... (by KC):

What is a "WDIL" referenced in the post directly above? Not familiar to me; is it perhaps an acronym for "deed in lieu of (foreclosure)"?

That question aside, be aware that if a timeshare loan gets "forgiven", you will receive a Form 1099 from the developer. In essence, a timeshare loan balance does not somehow just magically disappear. On the contrary, the "forgiven" timeshare loan balance then has to be reported and treated (and taxed) as income on your tax return for the year in which the 1099 gets issued. Rest assured that the IRS will also receive a copy of that 1099, as timeshare developers certainly use such bad debt to advantage as "write offs" in their own tax filings.

You can (and probably should) independently confirm the accuracy of this input for yourself directly with a tax attorney or CPA.