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Re: Getting rid of a time share. (by Beck):

The time test is if you've used the unit for personal time, the unit must be rental/investment for 3 of 5 years in order for the capital loss to be deductible, which I said in my post. The hobby vs business conclusion is better addresses between each investor and their tax accountant or the IRS. I agree there are many avenues to realizing your timeshare as an investment to acheive a capital loss, I'd prefer to take an approach which the IRS is unlikely to challenge.

Unfortunately, the way I submitted my post it looks like I said "not quite right" to your first paragraph when I was more concerned about your sentence regarding the $3,000 cap on capital losses. It appears your posts suggests the maximum offset is $3,000 which I'm pretty certain you didn't intend to convey since the offest is limited to the amount of gains and the $3,000 is the limit after the offset, just as I didn't intend to convey my "not quite right" was in response to your first paragraph. You would have been better off saying something more similar to my last paragraph and I would have been better off saying I'd like to add more detail to carvana's post in regard to the $3,000 limit on capital losses.