Can You Donate Your Timeshare?
There are many reasons why donating a timeshare is the best way to get out of your timeshare ownership. If you donate time share, we will provide you with a tax receipt reflecting your donation to the charity. The fair market value of your timeshare is NOT the same as what the developer or resort is charging for the same week or ownership. Similar to a used car, the market value of a timeshare ownership typically depreciates over time.
If you have questions about the process, feel free to contact us. While having these documents will help to speed up the timeshare donation process, we can work with you to retrieve the necessary information to move forward. Costs to Get Out of a Timeshare On average, it costs about $5,000 to $6,000 and takes 12–18 months to get out of your timeshare contract using a timeshare exit company.
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This could be a lengthy process in which you will still be responsible for paying all maintenance fees, utility taxes, and other special assessments until, or if, the donation is accepted. In this article, we will look at the reality of donating timeshares and how the process really works. We’ll also turn a critical eye to that deduction on your tax return. Finally, we’ll look at other legal, ethical options for exiting your timeshare that are preferable to donation.
The IRS states that you may claim the fair market value of the timeshare on the date you donated it. If you are claiming the fair market value as greater than $500, you will need to fill out Form 8283 to submit with your tax return. If you are claiming the fair market value as greater than $5,000, you will also need a written appraisal that meets IRS guidelines. DonateMyTimeshare.org was founded to help owners and charitable organizations through the sometimes complicated process of donating a timeshare.
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Selling a timeshare on your own, can consume a lot of money, time, and energy. This means that you do not have to continue to pay the maintenance fees, taxes, and the special assessments while the timeshare sits on the market. Timeshare Donation Tax Write-Off The IRS states that you may file to deduct the “Fair Market Value” of your timeshare donation, should your gift qualify. Therefore, advertisements that donating timeshares can get you a fat income tax deduction are usually overblown. You can’t get a tax deduction for a timeshare you bought for your own personal use. Can you really say that you bought the timeshare to use it as part of your job?
If for some reason your timeshare cannot be accepted, we will inform you in the beginning to avoid any costs that may occur. To determine the Fair Market Value of your timeshare, you should speak with a CPA or financial tax adviser. If your adviser determines that your timeshare’s market value is over $500 and you’d like to try to get a tax deduction, you must file Form 8283 with your tax return. You may need a professional timeshare appraisal if you are claiming the FMV to be over $5,000.
A timeshare does need to be paid in full with the resort or the resort’s lender in order to donate to Giving Center. If your contract has no deed back clause, you may be able to give your timeshare back under a deed back program. To qualify, most resorts insist that all maintenance fees and special assessment fees are paid in full.
- Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation.
- Our closing company will contact you to sign the final documents and begin the donation process.
- The amount of paperwork needed to complete a timeshare donation is vast.
- Timeshare Donation Tax Write-Off The IRS states that you may file to deduct the “Fair Market Value” of your timeshare donation, should your gift qualify.
To find out the fair market value, have a professional timeshare appraisal that meets IRS standards. We are an ethical timeshare exit company dedicated to getting you out of your timeshare contract, free and clear. With over ten years of satisfied customers, Our team at Linx Legal knows the commitment it takes to free you from the chains that seem to bind you to your contract. In reality, it’s the only foolproof way to rid yourself of a timeshare contract legally.
You will then receive a new deed that transfers ownership from you to the charity. After you sign it, have the new deed notarized and return it to the charity or its representatives; that’s when you’ll receive a tax receipt for your donation. You remain responsible for paying maintenance and all other fees until you receive the tax receipt. It is important to note that this type of deduction refers only to deeded timeshare property interests.
But the cost and the timeframe can vary depending on a number of factors including, how many contracts are attached to your timeshare. After years of vacationing at the family timeshare, you’ve decided it’s time to get rid of it. Life changed, and you cannot travel as often as you used to and can no longer afford to pay the ever-increasing fees.