The note came from the actual client, with a name and number to the lady at the time share that I am suppose to find time to call.  My belief is if that company wanted to make the switch possible they should have just used it as a trade in and not processed it as a sale.(As when you trade a car in for another you only pay sales tax on the difference/balance)    

This is the first time I have had this type of return with timeshare trade/exchange.   I planned to call them and ask what they paid for it and tell them they have to pay on the gain.  But after reading the note written on it. I thought it would be best to see if this was something I didn't have education on...and educate myself.  With all the tax law changes.. I gave my self a doubt that I might be wrong and they might be right.  I feel it has to be reported as a sale and if a gain they have to pay on it.. if a loss.. then too bad. no losses taken on personal second home.   And for the new one.. they'll have to wait until they sell it.  I was just hoping someone else has come across this in the past.. I've been in business since 1983 and haven't had anything like this before on a personal time share,, only on investment property.