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Tom D.
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
Phil L.
Tom tell us your not posting just to write-off a dollar on your taxes! There has to be more to this story!
One of the main problems with this Redweek site is the fact the same questions get asked and answered over and over and over. I will give you credit that this is a new one as far as the number in question,a whole dollar.
PHILL12
Don P.
You can only deduct what the timeshare is worth or what it actually sold for. If one dollar is all it is worth than that is all you can deduct. You don't want to be hit with penalties and interest years from now.
Lance C.
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
My question is If a professional tax preparer such as "[your] tax guy" is telling you that you can not claim that tax deduction, then why are you coming on these boards asking non-professional tax people if you can?
Are you just asking around in hopes of at least someone (whether or not that person is a professional) will tell you what you want to hear so that you can proceed with this questionable tax deduction and then, if/when you get caught, you can claim that you got this advice from a "reputable" source (a forum on timeshares where any Joe of the street can join)?
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.
Last edited by jayjay on Mar 09, 2013 08:23 AM
Brent M.
As a representative of Donate for Cause I would like to correct jayjay's comment above, it is not our position "that you can write off $5,000 for a donated timeshare no matter what you paid for it...".
No matter what you claim you must be able to provide documentation in support of that value and you must act in accordance with the IRS guidelines. We recommend that if you are going to claim any amount you get an appraisal in order to have an expert determine the fair market value and then take that information to a professional accountant and follow their advise regarding the amount you can claim as a chartitable contribution.
R P.
brentm99 wrote:As a representative of Donate for Cause I would like to correct jayjay's comment above, it is not our position "that you can write off $5,000 for a donated timeshare no matter what you paid for it...".No matter what you claim you must be able to provide documentation in support of that value and you must act in accordance with the IRS guidelines. We recommend that if you are going to claim any amount you get an appraisal in order to have an expert determine the fair market value and then take that information to a professional accountant and follow their advise regarding the amount you can claim as a chartitable contribution.
With all due respect .... a timeshare's market value is only what someone is willing to pay for it (especially in this economy) ..... there's no Kelly's Bluebook for the market value of timeshares like there is for cars.
Don P.
The IRS has gotten wise the the appraisal scam. You can only deduct the actual value of the item donated. It is your obligation to prove what the item actually sold for not some phony appraisal that anyone can pay someone to inflate.
Phil L.
brentm99 wrote:As a representative of Donate for Cause I would like to correct jayjay's comment above, it is not our position "that you can write off $5,000 for a donated timeshare no matter what you paid for it...".No matter what you claim you must be able to provide documentation in support of that value and you must act in accordance with the IRS guidelines. We recommend that if you are going to claim any amount you get an appraisal in order to have an expert determine the fair market value and then take that information to a professional accountant and follow their advise regarding the amount you can claim as a chartitable contribution.
Well that sucks! If he does all that he spends more than his $1.00 write-off! PHIL
Brent M.
jayjay – Resorts sell timeshares for thousands of dollars every day. We sell them every day as well, often to brokers who are flipping them for a profit. An owner’s inability to market effectively doesn’t mean their property has no value. Remember, a timeshare is normally considered real estate and it’s valuation is much more complex than you are making it out to be, I would encourage you to read the real estate section of IRS Publication 561, see page 6.
donp - You cannot just go out and get an appraisal for whatever amount you want. Real estate appraisers must be certified and the appraiser is liable if they are found to be inflating fair market value. They can face penalties around $1,000 *per inflated appraisal*. Our donors pay $150 to $180 to get an independent third-party appraisal. You are speculating that an appraiser who invested thousands in getting certification and building a business would be willing to risk thousands more in penalties for $150 in fees. That just doesn’t add up.
Both of you seem to be basing your assumptions on IRS directions regarding the donation of boats, cars, and planes. The IRS made exceptions for those specific donations, the exceptions *do not* extend to the donation of real estate.
Don P.
Anyone that takes a deduction based on an appraisal and then gets audited and slapped with penalties and interest deserves what they get. They should just be happy getting rid of their obligation of future fees. I'm sure you can just say Brent told me it was legal and they're off the hook. I assume you still believe in the Easter bunny too. The greedy will get caught and pay huge penalties and Brent just wants his upfront fee. I almost forgot that he probably wants an " appraisal fee " too. It's a scam.
