posted 05-14-2005 18:35            

I would also ask the charity for some guidance in how to value the unit. Just remember you're the one who has to defend the price if the IRS audits you!

posted 05-15-2005 18:36               

lots of alleged TS resale advertisers will tell you you need their $600 "appraisal" and they'll promise an inflated sales price on your deed. (they really are a scam and they take your $600 and do nothing for you). A year later, you still have a TS to sell and you're short $600. So, never pay an "upfront fee" to sell a TS (other than a nomianl $20 to $50 advertising fee), no matter what they call the fee (appraisal, marketing, advertising, etc).

I realize you're talking about donations:

posted 05-15-2005 19:08               

If the owner is honest in valuing a timeshare, selling a timeshare should always be more economically beneficial than donating it.

Assume one can sell a timeshare for $4,000. Under IRS rules, that's also the fair market value for donation purposes. The tax value has nothing to with what the timeshare cost to purchase.

First, assume you sell for $4,000 and have $500 of advertising and closing costs. You'll have a net of $3,500 in your pocket, assuming that is less than the original purchase price, because there will be no capital gains tax on the sale.

Now assume that instead of selling, you donate the timeshare and take a charitable donation tax deduction of $4,000 on your tax return. If you are in the highest federal income tax bracket (35%), that donation will save you about $1,400 in taxes.

Having $3,500 in your pocket is better than $1,400.

posted 05-16-2005 12:49            

Thanks everyone for your advice. I'll explore all your leads further, and I'll post if I learn anything that might be helpful to others in the future.

posted 05-16-2005 19:50               

quote:

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Originally posted by Dean:
Getting a true appraisal in unreasonable.

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Not just anyone can give an appraisal for tax purposes.

An appraisal is not required by IRS if the claimed value of a donation doesn't exceed $5,000.

However, if the value exceeds $5,000...

• The taxpayer must obtain an appraisal by a qualified appraiser.
• Both the appraiser and the appraisal must meet IRS requirements as detailed in the tax regulations.
• Both the receiving charity and the appraiser must sign (under penalties of perjury) a form that the taxpayer must attach to the income tax return.

posted 05-16-2005 20:34               

quote:

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Originally posted by Carol C:
Maybe they don't want my timeshare

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Carol, If the organization doesn't have the mechanisms in place to utilize the timeshare, it could end up costing them more than it is worth. They may not have the knowledge to either properly manage or sell the timeshare. If they pay TSownerripoffs.com $700 to list it, they will end up worse off than if you had never given it to them. Many charities lose money and valuable volunteer time disposing of donated goods they can't use. I say sell it yourself and give them some (or all) of the proceeds.

Stefa

posted 05-17-2005 19:09               

quote:

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Originally posted by Dave M:
Not just anyone can give an appraisal for tax purposes.

An appraisal is not required by IRS if the claimed value of a donation doesn't exceed $5,000.

However, if the value exceeds $5,000...

• The taxpayer [b]must obtain an appraisal by a qualified appraiser.
• Both the appraiser and the appraisal must meet IRS requirements as detailed in the tax regulations.
• Both the receiving charity and the appraiser must sign (under penalties of perjury) a form that the taxpayer must attach to the income tax return.

Guess what happens if the taxpayer doesn't get the required appraisal? The taxpayer is not entitled to any deduction for the donation.

There are many qualified appraisers in almost every community who will be able to do a qualified appraisal for somewhere in the neighborhood of $300, plus or minus a bit. If the owner of a timeshare provides pertinent info, the appraiser can do an adequate job at a reasonable cost. Such info might include original purchase price and date, actual resale prices and sources (ask the resort, check the TUG and TSToday databases, etc.), current asking prices for resales (do a Google search and check the TUG classifieds), etc.[/B]

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posted 05-18-2005 18:03               

quote:

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Originally posted by Dave M:
Since most timeshare sales - at least in the U.S. - are a matter of public record, it's fairly easy for a knowledgeable appraiser to find comparable sales with a minimum of effort. The appraiser then uses a template developed specifically to make such IRS-qualifying appraisals and issues the appraisal.

Still, I agree that you or I might be able to come up with the same or a more accurate valuation. However, our non-qualifying appraisal would net the donor a zero charitable deduction - assuming a value in excess of $5,000.

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