If you inherit it, and sell it, it is considered investment property. However, if you use it yourself once you inherit it, it is converted to personal use property. Unless you purchase a timeshare for the specific purpose of renting it out, and do so on a regular basis, you'll be hard pressed to convince the IRS it's an investment property so you can claim a loss. Also remember, if you claim it as an investment property you have to recapture allowed depreciation (whether you claimed it or not). You'll also have trouble claiming it as rental property if you didn't report the income from it each year on schedule D.