Original Message:
Re: Has anyone ever donated a timeshare for a tax write-off? (by Ken R.):
It's interesting to see the thread of comments here. They follow two basic threads. One is the question at hand and the other is the individuals themselves. I, for one, would prefer to answer questions about myself than let others speculate about me. If there are questions regarding my or anyone else's background or expertise, let us answer those ourselves. That helps prevent irrelevance, keeps the focus on the primary question and reduces the potential for irritation and flaming.
In answer to one comment by ken 1193, the thought that the developer has the sole right to recoup his or her costs as the "initial" market and the timeshare buyer does not seems questionable. After all, doesn't the buyer have a cost basis for his possession? Isn't what he paid for the timeshare a cost he or she would wish to recover? As such they would fit into the same definition as the developer.
Interestingly, the IRS has no such difference in their calculations. They do not differentiate between the "initial" and "second hand" markets. Their regulations stating the basis for any sale is the initial purchase price, regardless of the purchase reason, stands out clearly when one reads the regulations. Even to the point of being able to use that point as the basis for a tax loss if the buyer resells the timeshare for less than what he or she paid for it.
I would propose that any questions one might have be directed to the authority of the IRS and then, if they desire, share those findings with the forum. I try to do that whenever possible. Before I ever post I have generally check with the source to answer my questions instead of giving opinion without back up. After all, if I'm doing business of any kind, I want to make sure I can do it the way I think it should be done - before I get stuck with problems I failed to consider in advance.
This, and most other forums, are great to bring questions up for research. That's one of the reasons I check on those issues I'm concerned about. I appreciate questions, comments and concerns as presented by people like ken 1193 about the question at hand. It often does send me back to research the question some more.
Dr. Ken Rich