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Can You Donate Your Timeshare To Charity?

Often, timeshare buyers regret their purchase and eventually look for a way out. However, the industry's resale market is no picnic. Reselling can be a nuisance with the exorbitant fees, bring time-consuming, and the overall lack of property value for potential buyers. 

In recent years, thousands of timeshare owners have struggled to sell their timeshare week and have turned to the idea of donating the property proceeds to charity instead. Continue reading below, and we'll answer the most common questions regarding timeshare donations.

Are Donating Timeshares to Charity a Smart Way to Get Rid of Them?

If you are familiar with the timeshare resale market, you know how it’s a barren wasteland of unhappy vacation owners. There are hundreds of listings far below their original purchase price, yet hardly any willing buyers. On top of that, it costs a lot to sell a timeshare unit from the advertising costs, recording fees, and title and resort transfer fees.

Many owners are so desperate to flee the high costs of their vacation ownership they have found other ways to get rid of them. Recently, donating timeshares to charities has proved to be a hassle-free process for many owners.

ARE THERE BENEFITS TO DONATING YOUR TIMESHARE?

Here are several reasons why donating gifts of timeshares could prove to be beneficial:

  • Relieves You Of Timeshare Ownership Responsibilities
  • You Won’t Have To Pay Annual Maintenance Fees Anymore
  • Saves You An Abundance Of Time and Money Compared To Reselling
  • Makes A Positive Change By Supporting Local Communities
  • Eligibility for Potential Tax Benefits

CAN YOU RECEIVE A TAX DEDUCTION FOR DONATING YOUR TIMESHARE?

You may qualify for a charitable tax deduction if you’re lucky enough to find a charity willing to accept a timeshare donation. There is no guarantee you'll receive a charitable deduction, but you should contact your tax specialist for more information to find out.

HOW TO DONATE A TIMESHARE TO CHARITY

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Now that you understand the benefits of donating a timeshare to charity, you are probably curious about how to do so. The first step is to find a charity willing to accept it as a gift. Once you've done that, you can begin preparing your records for the timeshare donation process.

Here is the information and documents you will most likely need:

  • Name of the Resort Company
  • The Timeshare Agreement or Deed
  • Proof Of Mortgage Paid In Full
  • Most Recent Timeshare Maintenance Fee Bill
  • Most Recent Property Tax Receipt

This information will help speed up the timeshare transferrable process, thus saving you money. The next step is to have your property appraised to determine the timeshare's market value, determining your tax return deduction amount.

HOW TIMESHARE OWNERS CAN DETERMINE THE FAIR MARKET VALUE

The appraisal of your timeshare donation is crucial. It's no secret that a timeshares' resale value is far less than many owners believe, but this must be accurate. To find out the fair market value, have a professional timeshare appraisal that meets IRS standards.

The IRS strictly claims that you cannot claim a fair market value higher than the original timeshare cost. Claiming a timeshare is worth more than its actual value when donating to a charity can result in a fine or an IRS audit.

CAN YOU DONATE A TIMESHARE WITH A MORTGAGE?

Unfortunately, you cannot donate your timeshare property until you fully pay it off with the resort company. A charity will not accept the timeshare as a donation if you still owe a mortgage on it. Once you have paid off the mortgage, you can begin looking at a donation option.

WHAT COSTS SHOULD I EXPECT TO PAY, AND HOW LONG DOES IT TAKE?

Each timeshare donation is different, so determining the associated costs can be challenging. You should at least expect to continue paying all regular timeshare expenses, including taxes, maintenance fees, and special assessments until the donation transaction is closed. Depending on the timeshare company, you should also know the potential closing costs and resort transfer fees.

Luckily, the donation process for these properties tends to go much quicker than working with timeshare resale companies. While you do have to complete the transferral of ownership with the charity of your choice, this typically takes no longer than a month.

WHAT WILL THE CHARITY DO WITH MY TIMESHARE?

Most charities that accept timeshare donations as contributions are considered 501(c)(3) charities, meaning nonprofit organizations exempt from federal income tax. Donated timeshares typically aid less fortunate individuals and families involved with these charity organizations. Many charities have timeshare donation programs, including the Giving Center and Helping Hands Of America, while other large charities often use third-party donors.

CONCLUSION

So, can you donate a timeshare? Sure, as long as you meet all the legal requirements and have a willing buyer or charity to accept it. While selling a timeshare can be a headache or, even worse, a scam, donating it can leave you with a sense of virtue.

If you are a timeshare owner looking for a way out of your agreement but at a crossroads, reach out to Wesley Financial Group, LLC for assistance. While they do not accept timeshare donations and are not at liberty to give out tax advice on charitable donations, their staff does include timeshare exit experts who can help point you in the right direction to financial freedom.

Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes and not intended to substitute for professional advice, legal or otherwise.

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