# Timely TUG Tax Tutorial...



## KauaiMark (Apr 16, 2006)

Dave McClintock's "Income Taxes and Timeshares"
http://www.tug2.net/advice/TUG_Taxes_and_Timeshares.htm


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## bigfrank (Apr 29, 2006)

As usual, Dave has provided another great source of information. I liked reading the Donating your Timeshare To Charity section. Not sure if I understand it all. Do you have to get an Appraisal in order to claim a TS value of $4500? If not then donate the weeks you want to get rid of and claim up to $4999. Makes sense to me.


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## Dave M (Apr 29, 2006)

No, you wouldn't need an appraisal. As the article states, "If the FMV [Fair Market Value] exceeds $5,000, you’ll need a written appraisal that meets IRS guidelines." No formal appraisal is required for timeshares valued at $5,000 or less.

Your strategy would not be the best economic strategy, unless the timeshare owner plans to cheat on taxes. As the article explains with an example, it should almost always make more economic sense to sell rather than donate. An exception would be where the selling costs would reduce the net proceeds from selling to less than the tax savings from donating.


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## bigfrank (Apr 29, 2006)

Thank you Dave, I think i was reading it to late at night and was dozing off. I see that you said you do not need the appraisal for under $5k. 
BTW, I would never cheat the Government of my hard earned money. I enjoy sending in every penny. Especially this year as I was looking forward to it for months. Since I sold some properties last year,  I had Uncle Sam and Aunt Samantha giving me kisses on 4/17. Yes they were wet kisses.


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## SOS8260456 (Apr 30, 2006)

Thank you Dave for sharing this information.  As a fellow CPA I pushed off filing our taxes until I could research how to handle our timeshare sales and rentals and your article verified how I had already planned to handle everything.

Lisa


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## Kauai Kid (Apr 30, 2006)

Please repost this information next year in early January. 

Thanks, Sterling


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