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

mike1536 wrote:

ken1193 wrote:

annm246 states, quote: >> I was in the same position and then I found a company that I could Donate my Timeshare to. It cost me no money and I received a $4900.00 tax credit to boot. The Charity is a IRS Non-Profit Wildlife Refuge and the Company that handled everything was www.TREJESTO.com. They were great and everything was done in a couple of weeks. I would highly recommend them. <<

Ann Cherry Hill, NJ

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You don't get a "tax credit" for a timeshare donation. A "tax credit" is a "dollar for dollar" reduction of your total tax liability, and that's NOT what a timeshare donation actually qualifies for under IRS regulations.

More accurately, you MAY be eligible for a tax *DEDUCTION* as a result of your donation, based upon its current market value (NOT whatever was paid originally), up to a maximum of $5k. Actual tax savings are FAR less money than a "tax credit" would be since, as already stated, the "dollar for dollar" nature of a "tax credit" does NOT apply to a timeshare donation.

Tax matters aside, however, the bigger issue with timeshare donations today is that many charitable organizations simply (and understandably) DO NOT WANT THEM and will promptly DECLINE the donation offer unless it's a popular week / resort / geograhic area (as Ann's Cape Cod timeshare clearly was). Some charities (most of them, actually) use a closing company to decide whether the "offered" timeshare should be accepted at all; very often it is NOT accepted.

Don't forget, a timeshare week is every bit as much of a financial burden for the recipient of the "donation" as it was to the previous owner who was willing to give it away (maintenance fee bills, special assessments, etc.). Unless an organization can promptly and easily turn a donated timeshare directly into cash by a very quick turnaround sale, it's absolutely worthless to them and just becomes an unwanted financial liability to them. For that reason, more timeshares are rejected than accepted.

Not to sound pessimistic, but having some direct, first hand knowledge and experience in this particular area, I wouldn't want folks seeing Ann's post quoted above to jump to incorrect conclusions and have false hope that an unwanted timeshare can simply be donated. Again, in today's market, more timeshare "donations" are REJECTED than are actually accepted as "gifts".

In short, Ann's experience is the exception, not the rule -- Cape Cod is a highly desirable area with a very limited number of timeshare locations and weeks being available. You wouldn't have the same success trying to donate a timeshare in a geographic location where thousands of timeshares are advertised for sale every day for pocket change (Kissimmee, FL , for example).

Anyway, just another word of caution. I checked out donating a TS to "Eyes for Sight". I declined after reading the requirements. They did not actually take the TS until after a buyer was found. In the meantime, I would've had to continue the maintenance fees AND I was not allowed to use, rent or deposit the unit.