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If you had read the provided link entirely, you would have found several links to a full quotable analysis of IRS regulation, publications, commentaries, and forms. If you are interested here is the link again - http://www.communityhealthtraining.org/Timeshare-IRSLossClaim.pdf I will provide the short synopsis here and summarize at the bottom. Please pardon the length - YOU ASKED FOR IT. ========================= (IRS Quote) +++++++++++++++++++++++++ All of the following quotes are directly out of IRS Publication 544 Sale and Other Dispositions of Assets Fair market value. Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither has to buy or sell. If parties with adverse interests place a value on property in an arm's-length transaction, that is strong evidence of FMV. If there is a stated price for services, this price is treated as the FMV unless there is evidence to the contrary. All of the following quotes are directly out of IRS Publication 561 Determining the Value of Donated Property In general, there are three main approaches to the valuation of real estate. An appraisal may require the combined use of two or three methods rather than one method only. 1. Comparable Sales The comparable sales method compares the donated property with several similar properties that have been sold. The selling prices, after adjustments for differences in date of sale, size, condition, and location, would then indicate the estimated FMV of the donated property. ========================= (Comment) +++++++++++++++++++++++++ (Notice: there is no differentiation between new real estate and reselling real estate and timeshare deeds are defined and governed as real estate.) ========================= (IRS Quote) +++++++++++++++++++++++++ For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor's appraised FMV. ========================= (Comment) +++++++++++++++++++++++++ (Ebay is NOT a legal comparable sale.) ========================= (IRS Quote) +++++++++++++++++++++++++ Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property. ========================= (Comment) +++++++++++++++++++++++++ (Taking the majority of legal comparable sales, those farthest from the norm are least considered and since the majority of sales for any resort are those sold BY the resort, the retail price is closet to the norm, not some eBay price which is not useable.) ========================= (IRS Quote) +++++++++++++++++++++++++ 2. Capitalization of Income This method capitalizes the net income from the property at a rate that represents a fair return on the particular investment at the particular time, considering the risks involved. The key elements are the determination of the income to be capitalized and the rate of capitalization. ========================= (Comment) +++++++++++++++++++++++++ (This method does not apply.) ========================= (IRS Quote) +++++++++++++++++++++++++ 3. Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. Instead, it generally tends to set the upper limit of value, particularly in periods of rising costs, because it is reasonable to assume that an informed buyer will not pay more for the real estate than it would cost to reproduce a similar property. Of course, this reasoning does not apply if a similar property cannot be created because of location, unusual construction, or some other reason. Generally, this method serves to support the value determined from other methods. When the replacement cost method is applied to improved realty, the land and improvements are valued separately. ========================= (Comment) +++++++++++++++++++++++++ (Once sold for any price, where and at what cost would the original owner have to find a replacement of unit, date, and terms? The only legitimate source is the direct resort sales and its retail prices.) ========================= (IRS Quote) +++++++++++++++++++++++++ Unusual Market Conditions For example, liquidation sale prices usually do not indicate the FMV. Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. ========================= (Comment) +++++++++++++++++++++++++ (In other words, those sales made when an owner simply says, Get me out at anything you can get. FAST! dont have to be considered indicative of FMV.) ========================= (IRS Quote) +++++++++++++++++++++++++ Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. . . The cost or selling price is a good indication of the propertys value if: The purchase or sale took place close to the valuation date in an open market, The purchase or sale was at arms length, The buyer and seller knew all relevant facts, The buyer and seller did not have to act, and The market did not change between the date of purchase or sale and the valuation date. All of the following quotes are directly out of IRS Form 8282 - Donee Information Return (Sale, Exchange, or Other Disposition of Donated Property Purpose of Form Donee organizations use Form 8282 to report information to the IRS and donors about dispositions of certain charitable deduction property made within 3 years after the donor contributed the property. ========================= (Comment) +++++++++++++++++++++++++ (This is the best reference to timing of FMV and sale price. The IRS is specific is saying that an estimation of FMV can stand, but is automatically changed if there is a resale within 36 months.) ========================= (Comment) +++++++++++++++++++++++++ SUMMARY: 1. Fair Market Value (FMV) is determined ONLY by specific comparables giving names, county record pages, dates, dollar amounts, etc. 2. A quick liquidation sale does not qualify as a FMV. 3. Ebay is not a qualified comparable. 4. Acceptable comparables are priced closest to the average sale price of the majority of sales that qualify as FMV which are resort sales. 5. If an actual sale is accomplished, it takes precedence over and estimated FMV. 6. In order for the actual sale price to take precedence it must be within a 36 month time period of the date of donation or the IRS doesnt want to consider it. 7. A deduction of more than $5,000 requires a certified appraisal. $5,000 is the upper limit of valuation within the above qualifications. If you choose to advise donors to use unqualified comparables such as eBay, determine their timeshare value even though it is considered under Unusual Market Conditions, and ignore IRS law of timing at 36 months on resale, Im happy youre willing to face scrutiny by the IRS. Barring substantial documentation to the presented IRS documentation Ive provided, I would ask you to let this go and not try to prolong a possible contentious discussion without warrant. The links Ive provided are available to everyone. I do appreciate your questioning the concepts and giving me an opportunity to present the facts as stipulated by the IRS. Like you, I believe it is in the best interest of all to have quality resources available for their own review. Also, like you and many others, I initially found the breadth of IRS publications somewhat confusing. I spent many months researching this information AND questioning the IRS directly regarding these issues, before I decided to provide this service to timeshare donors. By the way, your link doesn't work. Why? =========================