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

Below is from certified CPA Dave McClintock ..... his expertise on taxes can be found under resources here at Redweek .... notice he says "if you value the week more than $500 you must file a form 8283 WITH your tax return. "If you value the donated week at more than $5000 you must get a formal appraisal."

You cannot just automatically deduct $5000 for a timeshare that you donated to any charity (legit or not) without a FORMAL appraisal .... there are very few timeshares that are valued at $5000 in this market/recession.

DRK doesn't feel the need to explain this to people who are willing to go along with his scam and if the IRS catches him then he and you will be in serious trouble. You'll not only have to pay back taxes but the IRS will add interest also.

[Dave states]"If you value the week (alone or combined with other non-cash donations) at more than $500, you must file Form 8283 with your tax return, putting IRS on notice that there might be a valuation issue for them to scrutinize. If you value the donated week at more than $5,000, you must get a formal appraisal. Further, if you donate more than one week in a year, you must get an appraisal if the total value of the donated weeks exceeds $5,000".

"If required, the appraisal must be performed by someone who is "qualified" to do the appraisal, based on requirements set forth in the federal income tax regulations. Many charities state that they will provide a valuation statement for the donor. Beware of such an offer. If the value is over $5,000, you need a formal appraisal. Whatever the value is, you are responsible for the valuation shown on your tax return. If you significantly overstate the value of your week, there are some stiff tax penalties that can apply".