RCI/Manhattan Club Question

[HappyHarry]

Hi Everyone, Hoping to get some advice. Our friends own at the Manhattan Club and are frustrated with the M-Fees. Over $2500. They were told one way to be rid of the property was to donate it to a non-profit - Wounded Warriors. It would go to a good cause and they'd be able to write it off on their taxes. Anyone done this before or know someone who has? They're hoping this might be a good choice for them - so hoping to hear from someone who knows!!! Thank you

 

[tschwa2]

Hi Everyone, Hoping to get some advice. Our friends own at the Manhattan Club and are frustrated with the M-Fees. Over $2500. They were told one way to be rid of the property was to donate it to a non-profit - Wounded Warriors. It would go to a good cause and they'd be able to write it off on their taxes. Anyone done this before or know someone who has? They're hoping this might be a good choice for them - so hoping to hear from someone who knows!!! Thank you

A real non profit will not accept a timeshare as a donation. The value of the donation would be the fair market price. If they can't sell it for a dollar than the FMV is less than a dollar. There would be nothing to write off. What would a charity do with a timeshare that is difficult to reserve and has such a high MF's?
'These types of organizations charge large upfront fees and then attempt to sell them on ebay for $1 and if they can't they abandon the timeshare. Years ago that worked pretty well but now many HOA's won't even approve the transfer so your friends may find they are out the upfront fee, still own the timeshare and if they attempt to take a large deduction they may get audited. It is a lose, lose, lose situation.

 

[HappyHarry]

A real non profit will not accept a timeshare as a donation. The value of the donation would be the fair market price. If they can't sell it for a dollar than the FMV is less than a dollar. There would be nothing to write off. What would a charity do with a timeshare that is difficult to reserve and has such a high MF's?
'These types of organizations charge large upfront fees and then attempt to sell them on ebay for $1 and if they can't they abandon the timeshare. Years ago that worked pretty well but now many HOA's won't even approve the transfer so your friends may find they are out the upfront fee, still own the timeshare and if they attempt to take a large deduction they may get audited. It is a lose, lose, lose situation.

Thank you for your note. HGVC sales staff told my friends they would be charged $500 to transfer the timeshare over to the charity. Then through other cash donations to Wounded Warriors, (to cover the MF's) a veteran could choose to Manhattan and vacation. My friends' tax write off would be the market value of the week. I totally hear you and appreciate your response as it sounded silly to me. In the same vein, I also wondered if other people had heard of this or done it before, hence the reason for my post. Thanks again!