Give away timeshare to charity

carlynb wrote:

The timeshare at Los Cabos Golf Resort was successfully transferred out of our name and we do not have to pay the maintenance fees anymore. We never were able to get a deduction, because HMS never resold it- We are just happy not to have it in our name anymore. The deduction would have been nice, but we just wanted out. This was over a year ago-At the time we paid 500.00 to HMS for the transfer costs, including closing costs, etc. Hope this helps.

You need to contact the resort to make sure the timeshare is out of your name.

I received a letter from the resort acknowledging the transfer last year, and am no longer on their mailing list. It is a done deal.

I just started working with HMS to help us get rid of our timeshare. An A+ business accredited by the BBB called Timeshare Brokers in FL recommended HMS. Do you still have good things to say about this company? It sounds legit, because Timeshare Brokers does not ask for upfront fees to sell your timeshare. I had my timeshare for sale for months and never had to pay a time with them. When I decided to donate it, they gave me Shon Holloway's number. What does others think?

There are some charities that do take your timeshare but you have to dig deep for those. There are also some companies that help you to donate your timeshare. I have actually wanted to donate mine for a while now and have read a couple of blogs and websites that explain what to expect.

victorial73 wrote:

There are some charities that do take your timeshare but you have to dig deep for those. There are also some companies that help you to donate your timeshare. I have actually wanted to donate mine for a while now and have read a couple of blogs and websites that explain what to expect.

You can't donate a timeshare the donation foundation doesn't want .... also many former donation foundations (ie: donateforacause.com) ask for several years of maintenance fees before they will take it IF they will take it at all. AND you'd better research the IRS for any tax deductions for donating a timeshare.

I am aware that there are only some timeshares these companies are able to accept. That is why I have researched on what to expect if I do go through with trying to donate my timeshare. Again, the IRS does provide tax deductions as long as the charity is classified as a 501(c)(3) non profit organization.

Here's what Dave McClintock, CPA and respected TUG member/moderator says about donating timeshares and any deductibles allowed:

Donating your Timeshare To Charity A frequent question at TUG is, “Should I donate my timeshare to charity?” That often translates to, “I can’t sell my timeshare and have been told the tax benefit may exceed the sales price on the open market.” The answer is "Yes!", if you have a charitable motive and "No!", as it relates to that expected tax benefit.

If donating a deeded timeshare, the deductible contribution amount will normally be equal to the Fair Market Value (FMV) on the date of donation. That’s the price that an arms-length buyer and seller in the timeshare resale market would agree upon, not what the developer is charging for that same week. If the FMV exceeds $5,000, you’ll need a written appraisal that meets IRS guidelines. If the sale of the property would have resulted in a short-term gain, the FMV must be reduced by this amount.

Right to Use (RTU) timeshares and non-deeded points timeshares are tangible personal property to which additional rules apply. If the charity’s use of the property is unrelated to its primary function (for example, if sold at an auction), the FMV must be reduced by the amount of any gain that would have resulted had the property been sold by the taxpayer.

So, why can’t the tax benefit justify a donation? It’s relatively simple. FMV is normally the same as what you would sell your timeshare for. Since the highest federal tax bracket is 35%, you’re better off selling and pocketing the cash. For example, if you sell your timeshare for $1,000 (the FMV), you’ll have $1,000 in your pocket. If you donate the timeshare, your deduction should be $1,000 and your federal income tax savings would put, at most, $350 (35% x $1,000) in your pocket.

Keep in mind that appraisals aren’t cheap (most cost $500 or more) and the cost of the appraisal isn’t considered a charitable contribution.

Another frequent question is, "Can I get a tax deduction if I donate the use of my week to a charity?" The answer is “No”. IRS regulations won’t allow a charitable deduction for the gift of a right to use property. Donate the use of a week because you are charitable, but you can't deduct any value associated with the use of the week.

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I'm finding it hard to believe that this charity will just simply accept ownership. Most charities will charge thousands of dollars for that.

I'm not doubting that this charity is doing good, charitable works. I just find it strange that, if this charity is going to be fiscally responsible, that it will take over ownership of timeshares that have yearly increasing maintenance fees. Who pays these fees each year? What happens if a special assessment pops up?

And as for the part about receiving a tax write-off/deduction for the full market value, remember that the owner could not sell it and had to give it away. If he had to give it away, the fair market value is around zero and that's what the tax deduction will be.

And just what do you do with the timeshares once you take ownership .... do you continue to pay yearly maintenance fees or do you just let it go into foreclosure leaving other owners at the resort responsible for paying your share. As Lance said, it's the fair market value that counts when donating a timeshare and giving it away has zero fair market value.

Timeshares are for 1 week only so it doesn't make sense that you help people in need of housing. It looks like just another fake charity advertising on Redweek.

If it sounds like a scam and looks like a scam..... it's a SCAM !!!!!!!!!!! Like Jayjay said how can they use just one week. Looks like another twist in the old charity scam game.

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carlynb wrote:

You think 200.00 is high to transfer membership? We are being charged 1100.00! That's right- this is not a typo! 100.00 transfer fee and 500.00 per person to transfer the names for golf privileges. Talk about being taken advantage of! This is for the Los Cabos Golf Resort in Cabo San Lucas? Is anybody out there who has encountered anything like this? We are not even selling this- we are donating to charity-

Were you able to donate your Los Cabos timeshare? If so, to what organization. Was the transfer charge actually $1100?

That's a great price. Dollar for dollar you are way ahead, mine was 2800. I gues it matters as to how quickly it transfers out of your name. Mine took 3 weeks, quicker then I thought.