Original Message:
tax question: donating a timeshare that I paid $1 for (by R P.):
tomd360 wrote:I was fortunate enough to donate my timeshare to Donate for a Cause in 2012. My tax guy is now telling us that we can not claim the tax deduction on the value of the timeshare because we originally paid $1 for it.Does anyone know how this works or can point me to documentation?
Thx - Tom
Your tax guy is exactly right .... the value of the timeshare is $1 ( what you paid for it), but Donate for a Cause will tell you that you can write off $5000 for a donated timeshare no matter what you paid for it .... if you do this it will come back to haunt you years ahead including paying back the $5000 write off plus penalties and interest.