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Can I dontate my
Timeshare and claim a tax deduction? This page is an answer to a very common question we get here on TUG, we hope this page will provide you with all the information you need to help you answer this question completely. TUG does not exist to tell you what you want to hear, we are here to tell you the truth about timeshares! |
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Can I Donate my Timeshare to a Charity and claim a Tax deduction?! This is an extremely common question in this day and age with the tumbling economy and more and more people finding it extremely difficult to sell their timeshares even at bargain basement prices. The short answer to this question is "yes but...". While it is certainly POSSIBLE to donate your timeshare to charity and get a tax deduction, what most people dont realize is that the charity has to be able to sell your timeshare for a profit in order for the charity to actually receive anything of value as its rare that the charity will actually USE the timeshare themselves. The profit is in reselling the timeshare and thus you can claim a small deduction if this happens. The problem is that if you have been unsuccessful in selling your timeshare, a charity isnt likely to be very successful either, and may flat out turn out down on the spot if they dont feel they can sell your timeshare for at least a reasonable amount of money. Also its
important to note that fees may apply to these donations as even
charities cannot transfer timeshare ownerships and complete other
closing documents for free. When a charity actually sells your timeshare, they must file form 8282 with the IRS and submit a copy to you as well showing the actual sale price of the timeshare (remember, charities do not "take" timeshares, they merely sell them on your behalf). It is here where a huge "appraised" value that is significantly different than the actual sale price can certainly put a huge red flag on your return! Donation is only an option if you truly are trying to be charitable and have a week with some value that you wish to help a charity out by giving them the ability to sell it for you and keep the proceeds of the sale. Donation of your property because you have been unable to sell it yourself is always a poor idea, and in all cases will simply end up costing you more money out of your pocket. I
Furthermore TUG has two existing documents to provide more details on both the tax deductions applicable to you, and the actual options for donating your timeshare to charity. These articles are located here: TUG - Taxes and Timeshares This article discusses
tax deductions as they relate to timeshares, written by our own
resident CPA and timeshare Expert DaveM.
and here: Timeshare Abandonment - When you cant sell your timeshare at any price This article provides
you with options for getting rid of your timeshare when you have been
unsuccessful selling it on the open resale market. additional questions and answers can always be found on the BUYING, SELLING AND RENTING forum! |
and post Free Timeshare Classified ads (for individuals) in the |
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page updated Aug 7, 2011 by B Rogers - Send email regarding this page to tug@tug2.net