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Re: Getting rid of your timeshare (by R P.):

matth176 wrote:

JayJay, I did come into this discussion late, as I just became a member of Redweek, but I did read the entire four pages of material in this discussion. You have to admit, drk14 did back up all of his posit with fact and citations from the IRS rules. You, however, used emotion and name calling with absolutely no citations of fact. There was not one reference in all of your banter to any factual material.

You may feel that it is unfair to the other paying members, and that is a legitimate opinion that you hold. However, many buyers of timeshares are told that the company they are purchasing from will buy the timeshare back at anytime, as a part of their sales pitch, to get you to buy.

If you are new to the timeshare game, you look at it as a win-win situation. You can use the timeshare FOREVER, and it is an asset (which it is not considered by any creditor as an actual real-estate asset), and you can will it to your heirs, etc. AND, if the time comes that you no longer want or need the timeshare, the company will buy it back from you and sell it to someone else. Marriott was very smooth in the way they sold me my timeshare, and Marriott is actually a very low pressure sales company and I love their service and properties like no other.

Here's the thing--I just lost my job and cannot afford the maintenance dues that Marriott charges. And, they are not buying it back from me. They finally told me, after I really dug in and asked the serious questions, that they probably would not buy it back and told me to try Redweek.com. This was a very different position than what they told me when I purchased.

I'm in a good situation, because Marriott has such a good reputation, that I will be able to rent or sell my property and get out of the fees that I can no longer afford.

Some companies do not have good reputations, or beautiful properties and people are stuck. Drk14's charity is an attempt to help people get out of those fees when they cannot even give away their property. Why should someone face losing a good credit rating by foreclosure, when they were led to believe in the first place that they would NEVER be placed in that situation in the future.

Drk14 backed all of his points up with fact, citations and references. You may feel it is morally or ethically wrong, but he, on the same hand, feels the opposite. So you both have opposite opinions about a moral issue. He, however, was very articulate in how he approached the discussion and he will not get hit by the IRS or any other government agency for anything because his business model is correct. Manipulative, perhaps, but not in error or illegal.

I think the issue all goes back to the timeshare company. They at least need to offer SOME semblance of help with fees so people don't go into foreclosure without having absolutely no way out. The only alternative is to get ripped off by the true scammers, who charge you $4,000.00 and basically do the same thing.

In the future, use facts and citations instead of name calling. It does appear immature and childish, when you might just very well have a good point to make. This is all IMHO.

Here's what Dave McClintock, CPA and respected TUG member/moderator says about donating timeshares and any deductibles allowed:

Donating your Timeshare To Charity A frequent question at TUG is, “Should I donate my timeshare to charity?” That often translates to, “I can’t sell my timeshare and have been told the tax benefit may exceed the sales price on the open market.” The answer is "Yes!", if you have a charitable motive and "No!", as it relates to that expected tax benefit.

If donating a deeded timeshare, the deductible contribution amount will normally be equal to the Fair Market Value (FMV) on the date of donation. That’s the price that an arms-length buyer and seller in the timeshare resale market would agree upon, not what the developer is charging for that same week. If the FMV exceeds $5,000, you’ll need a written appraisal that meets IRS guidelines. If the sale of the property would have resulted in a short-term gain, the FMV must be reduced by this amount.

Right to Use (RTU) timeshares and non-deeded points timeshares are tangible personal property to which additional rules apply. If the charity’s use of the property is unrelated to its primary function (for example, if sold at an auction), the FMV must be reduced by the amount of any gain that would have resulted had the property been sold by the taxpayer.

So, why can’t the tax benefit justify a donation? It’s relatively simple. FMV is normally the same as what you would sell your timeshare for. Since the highest federal tax bracket is 35%, you’re better off selling and pocketing the cash. For example, if you sell your timeshare for $1,000 (the FMV), you’ll have $1,000 in your pocket. If you donate the timeshare, your deduction should be $1,000 and your federal income tax savings would put, at most, $350 (35% x $1,000) in your pocket.

Keep in mind that appraisals aren’t cheap (most cost $500 or more) and the cost of the appraisal isn’t considered a charitable contribution.

Another frequent question is, "Can I get a tax deduction if I donate the use of my week to a charity?" The answer is “No”. IRS regulations won’t allow a charitable deduction for the gift of a right to use property. Donate the use of a week because you are charitable, but you can't deduct any value associated with the use of the week.