Timeshare Charity Donation: Understanding the Real Value and Potential Pitfalls
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Are you tired of the timeshare week you are obligated to pay maintenance fees on, or just can't afford it? Should you rent it? Sell it? Perhaps doing a timeshare charity donation?
Timeshare charity donation and fair market value
The tax deduction you can receive out of a timeshare charity donation is limited to the "fair market value" of your timeshare. Fair market value is the price a buyer would pay for your timeshare in the resale market. Fair market value is not the amount you paid for your week or what the timeshare is selling for at retail prices.
Timeshare charity donation - real value
Most timeshares have a REAL resale value of less than $500.00 USD. Why is this possible when you paid thousands of dollars to own the damn thing? Simply put, timeshares are not financial investments. A developer pays thousands of dollars in marketing expenses in order to sell one out of every ten customers who walk through the salesroom. These expenses are deducted from the cost of your timeshare.
Another aspect to take into consideration is that there are around 600 people looking to sell their timeshares for every person interested in purchasing a timeshare in the resale market. Therefore, as you can see, timeshare resale becomes a difficult task. If you check for prices on internet sites such as eBay or RedWeek, timeshare are being sold for $1 Dollar commonly.
Timeshare charity donation - the economics
Now we know the real value of your timeshare. The question is, How much can you expect to obtain as a tax deduction? Let's say that your week is valued at $350 dollars; if you do a timeshare charity donation, the proceedings will arrive as a tax deduction. If your tax bracket is 20%, your tax savings will be approximately $70 dollars.
Timeshare charity donation and the IRS
When doing a timeshare charity donation, there are ways to appraise your timeshare for up to $5000 or more, but you run the risk of being audited. Some timeshare owners inflate the value of their timeshare to obtain a higher tax break. Doing this constitutes a tax fraud, which can result in criminal consequences. You and I know how much trouble the IRS can bring into your life, so I don't recommend this venue.
Timeshare charity donation - reason to do it
People wishing to perform a timeshare charity donation should do it on the desire to help a nonprofit organization and the desire to exit an unwanted timeshare, not by wishing to obtain a tax break.
Timeshare charity donation - conclusions
Mexican Timeshare Solutions has received several calls asking for help since timeshare owners that made a timeshare charity donation were audited by the IRS and now they have big penalties to pay (in some cases, the sum is larger than the initial timeshare cost). We recommend looking around for a company or charity that is not only interested in obtaining a financial gain out of you but also a company that is legitimately interested in helping you get out of your timeshare.
If you wish to do a timeshare charity donation of a membership purchased in America, contact Mexican Timeshare Solutions today to explain to you how we can help you get rid of your timeshare in three easy steps. Best of all, you don't have to pay any upfront fees; MTS gets paid until you are free of timeshare. This guarantee puts you on the safe side.
Contact Mexican Timeshare Solutions today to get rid of a timeshare purchased in the US.
To receive more information about timeshare charity donations and how to cancel your timeshare, send a WhatsApp to +52 1 333 239 6589, fill out the contact form, or call us at +1 714 277 3662.
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