Donate a confirmed exchange to charity ?

tschwa2 · Sep 29, 2015

Ty1on said:
That would have the same net effect as just donating the week, because you would claim both the rental income and the charitable contribution, washing each other.

I agree with Denise about the scenario not working on this one but the net effect would not be the same. The rental income that would be claimed would be the amount above MF and other expenses. The charitable contribution would be the entire amount of the rental.

Ty1on · Sep 29, 2015

tschwa2 said:
I agree with Denise about the scenario not working on this one but the net effect would not be the same. The rental income that would be claimed would be the amount above MF and other expenses. The charitable contribution would be the entire amount of the rental.

That is a good point.

geekette · Sep 29, 2015

PamMo said:
Add: There's been discussion on TUG, with conflicting reports that RCI and II will/will not let you donate an exchange week to charity. If anyone knows what the current answer is, please let us know!

How would they know? I do not have to document how I came to know Mr and Mrs Smith whose name is on the guest certificate that I pay exchange company to procure.

Why would they care? Renting exchanges is problematic due to profit motive, but I don't think a person donating weeks they paid for, along with exchange fee and guest cert, is going to motivate everyone else to start grabbing up weeks to donate.

I personally don't see why there would need to be conference with the exchange co beyond putting name on guest cert.

DeniseM · Sep 29, 2015

You are very unlikely to get busted for donating an exchange to a charity, unless you are making a cottage industry out of RENTING exchanges, and the excessive number of guest certificates that you request, draws attention to your account.

However, if the person who "wins" the raffle calls the exchange company and says, "I just bought this reservation and I want to confirm" - that could also be a problem. That is one of the ways the those who rent exchanges get caught.

geekette · Sep 29, 2015

LisaRex said:
In this theoretical situation, if I pay $2000 in MFs and someone (including a charity) pays me $2000 for use of that week, then I don't consider that a taxable event, any more than I'd consider it a taxable event if I sold the Taylor Swift concert tickets to a guy on the street for face value. I'm not making any money, so I don't see why the IRS would care.*

Extending that logic, if I subsequently donated whatever money I received for the VOI/conert tickets to charity, then I'd feel free to write that off because I am now LOSING money.

Now the IRS might disagree with me, but I'd have no problem bringing that logic into an Auditor's meeting.

*Honestly, even if I made money on those concert tickets, I wouldn't report it to the IRS. There's honest and then there's crazy honest.

Good examples, Lisa. Part of the issue here is that there is no way to account for exactly which dollars you donated. Whether you made the money via job, theft or donated to you, doesn't matter.

Regarding honest vs Crazy Honest, don't sweat it. I never reported all the pennies I've picked up off the ground thru the years either.

BocaBoy · Sep 30, 2015

TUGBrian said:
it is indeed one of the more ridiculous rules in the tax code.

Actually I think the rule makes perfect sense. Allowing a deduction would be the same as taking a deduction for giving the charity the right to give someone a week's stay in your home, or the right to use your car for a week. Giving the right to use your personal property is not a deductible expense.

okwiater · Sep 30, 2015

BocaBoy said:
Actually I think the rule makes perfect sense. Allowing a deduction would be the same as taking a deduction for giving the charity the right to give someone a week's stay in your home, or the right to use your car for a week. Giving the right to use your personal property is not a deductible expense.

Actually, you are allowed to deduct miles you put on your personal car in connection with charity business. Granted, it's about 25% of the standard mileage rate, but it's still something.

BocaBoy · Sep 30, 2015

okwiater said:
Actually, you are allowed to deduct miles you put on your personal car in connection with charity business. Granted, it's about 25% of the standard mileage rate, but it's still something.

That is something entirely different. It is an expense you incur on the charity's behalf that would not otherwise be incurred, not the right for the charity to use your property.

Donate a confirmed exchange to charity ?

TUG Review Crew: Veteran