Unloading my timeshare , tax benefit?

I want to unload my timeshare at Seasons, Warren, VT. It's worth $0 on eBay, $400 avg annual maintenance cost. Not getting $499 + Rci fees worth of trade. What is the best way to unload, I itemize my deductions, so is a donation the best bet? Is a donation even an option.?

I own a second points property which I love, so I plan on unloading and grabbing another points property.

Any guidance will be helpful, I am just beginning to explore my options.

Thanks,
Jon


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If you donate you can only claim market value which would be $0. No one will take it as a donation unless you contribute about $2500 of which they may donate $100 to a charity and then you could claim a $100 deduction if they clearly provide documentation that amount went toward the charity.

In general, your best bet would be to give it away and not worry about a deduction. You may have to pay the closing and transfer cost and maybe even 1-2 years MF's but that would still be less than the "Donate a TS" companies typically charge. Giving a way a ts that is worth $0 isn't always easy and may take months of posting and reposting etc. Good luck.

I sent you a PM

donation is an awful idea in nearly every circumstance (unless you actually have a valuable timeshare that you truly wish to donate to chartiy...vs just looking to dump one)

http://www.tug2.net/timeshare_advice/can_I_donate_my_timeshare_and_get_a_tax_deduction.html

How can I give my Timeshare away on TUG (FREE) - http://www.tugbbs.com/forums/showthread.php?t=132509

[Removed due to inaccuracy]

sjsharkie said:

Assuming your timeshare is worth $0, you can still take a passive loss on the sale/donation -- it is a valuable tax offset if you have a passive gain as you can't deduct the passive loss by itself. The good news is the loss can be carried forward to future years. (There are a few exceptions where you can take the immediate loss, but these are rare and would likely be considered corner cases.)

Charitable deduction? No -- not if the timeshare is worth $0.

-ryan

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What tax line are you referring to ?

Personal property sold at a loss is never deductible. Only if the property is bought for the sole purpose of an investment or rental property would it be deductible.

I would caution anyone against trying to classify their timeshare as an investment unless it truly was. You know many people probably try and the IRS likely looks out for abusers.

It's unlikely any timeshare bought retail could ever honestly make the case of no personal use and only investment.

Saintsfanfl said:

I don't think you are correct. Personal property sold at a loss is never deductible. Only if the property is bought for the sole purpose of an investment or rental property would it be deductible.

I would caution anyone against trying to classify their timeshare as an investment unless it truly was. You know many people probably try and the IRS likely looks out for abusers.

It's unlikely any timeshare bought retail could ever honestly make the case of no personal use and only investment.

Click to expand...

agree.

dump the timeshare to save on future maintenance fees.

but don't try to claim a deduction for a loss on the sale or some imaginary (or inflated by hucksters) donation value.

Thank you all for the direction, I understand that I can only claim a loss if it was an investment, and a donation is just FMV which is $0. And how is it a donation anyway if you are attaching an annual maintenance contract to it?

I will attempt to sell it.


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How can I give my Timeshare away on TUG (FREE) - http://www.tugbbs.com/forums/showthread.php?t=132509

Jdmalibu said:

Thank you all for the direction, I understand that I can only claim a loss if it was an investment, and a donation is just FMV which is $0. And how is it a donation anyway if you are attaching an annual maintenance contract to it?

I will attempt to sell it.


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Click to expand...

In theory you could "donate" a timeshare if it had value, and the charity would accept it as a donation. The maintenance fee portion is inconsequential. The charity could resell it right away, rent it out for a profit, or use it within the purposes of the charity. It's obviously not realistic but it is possible, especially with a very valuable timeshare. They are rare but do exist.

The companies that market "donate your timeshare" do not actually work as outlined above. What they do is have a registered charity that they own accept the timeshare. Then instead of donating the actual timeshare to another charity they just take a tiny portion of the proceeds on the sale and send it to one of several charities. The main problem with this scheme is the "donor" was charged a large sum of money for the "right" to donate the timeshare. In a nutshell they "bought" their tax donation, which actually negates it as a legitimate donation. How many times has someone taken clothes and shoes to goodwill or salvation army only to be refused unless they also wrote a check for $500?

Saintsfanfl said:

How many times has someone taken clothes and shoes to goodwill or salvation army only to be refused unless they also wrote a check for $500?

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I am confused by this comment. I take things to these two particular charities on a regular basis and I am given a receipt to fill in my own estimated value. (Guidelines are given by IRS as to value.)

There was an instance where after a garage sale I took my daughter's 'left overs' to the Goodwill to drop off and was told they don't take that type of donation. (Nothing like having your goods declined.)

I have never been asked to write them a check.

That's exactly what he's saying - with a true donation, you don't have to pay them money on top of the donation.

Saintsfanfl said:

I don't think you are correct. Personal property sold at a loss is never deductible. Only if the property is bought for the sole purpose of an investment or rental property would it be deductible.

I would caution anyone against trying to classify their timeshare as an investment unless it truly was. You know many people probably try and the IRS likely looks out for abusers.

It's unlikely any timeshare bought retail could ever honestly make the case of no personal use and only investment.

Click to expand...

You are correct -- my post is inaccurate.

-ryan

b2bailey said:

There was an instance where after a garage sale I took my daughter's 'left overs' to the Goodwill to drop off and was told they don't take that type of donation. (Nothing like having your goods declined

Click to expand...

Some places that take donations of items (eg., Good Will, Salvation Army, Thrift Shop, etc.) at times will reject items due to space limitations or perhaps they feel that no one will want the item(s) and they will just have to dispose of them while possibly incurring disposal fees.

That happened to us some months back when we tried to take some small furniture items to donate. We tried a couple of places and they said they were not taking furniture donations at that time.

But, back to the OP's original issue that appears to have been resolved, "donations" will cost you a lot more than listing it in the TUG free giveaway section and offering to pay closing costs and MF.

for those wanting actual CPA advice regarding timeshares and your income taxes.

http://www.tug2.net/advice/TUG_Taxes_and_Timeshares.htm