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What’s your plan to exit timeshares when you no longer can travel?

Caligirlfrtx said:
I was considering sending my employees on vacation using my units. I will speak with my accountant.
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I believe the issue is that if you post MF as a business expense, your employees may have to file the equivalence as income in kind. We did that for years, in that we gave timeshare stays to our employees but we did not declare as expenses so that our employees need not declare as income in kind.

https://www.nolo.com/legal-encyclopedia/question-deduct-employee-gift-cost-28066.html
 
VacationForever said:
Ask your CPA. I highly suspect the answer is no and it won't stand up in an audit if you do so.
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Agreed, I'd ask. But aware that many tax preparer's, lawyer's and CPA's are not very good with timeshares because they often follow different rules than condo's. My understanding as a lay person in timeshares is that you have 2 options. You can call it compensation to them and include it in their income or you can make the timeshare a business entity.

As I understand it, if you use the income method the employee gets the fair market value as income and you get direct expenses applicable to the portion they used as a deduction which means they are normally going to get a much larger spike in their income than you can write off. You can't then deduct the amount included in their income on the business side like you would the cash income. You would then deduce the direct yearly expenses that are allocated to the % that they used and you could potentially depreciate that portion but you'd have to file those forms and then if you sold the timeshare, you'd have to include the depreciation as a lower basis upon selling which might or might not cause it to be counted as income. For example (and short version) if you own a beach condo and only rent it out and you depreciation the entire cost over time then later sold it, the entire sale price would be counted as capital gains.

If one converts the timeshare to an employee benefit, then the "employees" would have to use it more than 50% of the time compared to family, friends, owners and "highly compensated". Highly compensated would be those that are in the top 10% of the earners at the company plus anyone making over a certain amount as defined by the IRS if it was higher than 10%. A few years ago it was anyone who made over $115K. Basically you'd have to own it for the employees to use most of the time.
 
terrygee said:
Default.
It's on St Thomas.. no more use to me or value anymore.
Fortunately I don't need credit for anything anymore and don't give a hoot what happens.
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Why don’t you give it away on TUG?


Sent from my iPhone using Tapatalk
 
tugboat89 said:
. . .
We give weeks to our local charities for their annual auction even though not tax deductible. Last auction brought $1,200 for a week that i booked in Arizona. With exchange fees it cost us out of pocket about$500.
. . .
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If you were out of pocket $500 and you believe it is not tax deductible, you need to find another tax accountant. If you have enough other expenditures to itemize then it is tax deductible.
 
Caligirlfrtx said:
I was considering sending my employees on vacation using my units. I will speak with my accountant.
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Some business owners have purchased HGVC NYC properties to use as a base for business visits for themselves and their employees to the city. However these are documented business trips with a prorata share of MF applied. Not sure about using them as an employee incentive.
 
controller1 said:
If you were out of pocket $500 and you believe it is not tax deductible, you need to find another tax accountant. If you have enough other expenditures to itemize then it is tax deductible.
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Donation of use of a condo or timeshare is not deductible in any form. You can rent it and donate the proceeds and you'd be able to take the deduction.
 
Sometime recently, there was a thread about what information to leave to survivors if timeshares were part of the estate. That information would be of use with this topic but I am unable to find the discussion. Any help would be appreciated.
Thanks!
 
We hope to use our timeshares for a long time. Retirement is close for DH and I already am retired.
We have 5 timeshares in 5 different places. Still in RCI and am pleased with the exchanges lately.
Also do exchanges thru TUG. We want to visit all of our timeshares next year if possible. As we age and find it difficult to use our timeshares we will sell or give them away. We are giving away one already.
Then we will have an even 4.
Silentg
 
When the time comes I’ll likely turn all my weeks into Marriott reward points since I have Starwood too, and have some fun hotel getaways. Once done there, get Marriott to buy the platinum weeks I have, then voila, all gone...
 
When I don’t need my timeshares anymore, I’m going to give them to @dioxide45 :)
 
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I’m wondering if the properties will last as long as I do.

We arrived at OP yesterday to find our newly refurbished room smelling musty and moldy.

OP has been hit many times by hurricanes. This season began early with Alberto.

Check in was difficult. Our room was ready when we arrived. It was an II exchange and the reservation actually began on Friday. It was on the south side of Cobia. My friends got in the room first and detected a musty moldy sensation. One went to the corner in the living room and found the carpet soaked 2-3 ft. square area. It could have been wet for a long time because 2 things gave us the opinion housekeeping hadn’t been looking in that corner.. The first was when we moved the chair there were cracker crumbs still on the rug and the second was the puddle of water in the sill by the glass was dirty so it hadn’t been dusted for a while.

We called AYS and waited before we emptied suitcases. Two separate housekeepers were sent up with the note they needed to wipe a spill or mop a floor. Not at all what I had told AYS. After several more calls an engineer came up and said they had recently had all the windows worked on after last years hurricane but this one was still broken.. It could have been leaking for the past few days or weeks from the recent storms.

They sent someone up with and extractor but it wasn’t a matter of simply caulking the window. The engineer said it was leaking from the outside. With the forecast for daily storms there was the possibility of the carpet getting wet on a daily basis.

I got a couple calls from rooms control to discuss staying or moving. As he droned on about the complications of moving us he had to insert his editorial about the buildings being 20 years old.

2 hours after arrival we were settled in a nice dry smelling room in Sailfish.

Today has been lovely so far. We got a nice walk and now my gang is down by the pool. Storm expected at 2. It will hit the opposite side of the building.
 
GetawaysRus said:
The definition of optimism.
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Hahaha! It passed by on the west. No rain at all. We stayed at the pool and walked to dinner.

Many of the stays we have at OP we look forward to a bit of rain hitting the windows because it clears off the salt spray. The wet rug changed my perspective for a while.
 
Quilter said:
Hahaha! It passed by on the west. No rain at all. We stayed at the pool and walked to dinner.

Many of the stays we have at OP we look forward to a bit of rain hitting the windows because it clears off the salt spray. The wet rug changed my perspective for a while.
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At Ocean Pointe this week also. Checked in on Sunday. Forecast shows an entire week of rain......but....Sunday night we had a nice swim, s’mores, etc in the evening after check-in....and weather on Monday (Memorial Day in the US) was fantastic. Windy, no rain, warm temps, little overcast, and just enough sun. Wine & cheese welcome in the PM. Great day!

Rain still forecasted the rest of the week. I’m betting against rain.... :).
 
I’m now looking forward to enough decent weather for an enjoyable trip. We got to walk the bridge (Mt. Blue Heron) and sit outside at DQ. It was also a beautiful moonlit walk on the inlet.
 
Fasttr said:
You should re-read the tax law... or do a web search....

Check out Donating the Use of a Week paragraph here as an example....
https://www.redweek.com/resources/articles/donating-timeshare-to-charity
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Dean said:
Donation of use of a condo or timeshare is not deductible in any form. You can rent it and donate the proceeds and you'd be able to take the deduction.
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All of the IRS guidance pertains to deducting the fair market value of the property and disallowing it because of the partial interest. I do not dispute that and agree that is not deductible.

I specifically addressed the $500 out of pocket expense in making the reservation. There are several scenarios to be able to legally deduct that amount. I've made similar deductions and argued same once with the IRS and they agree. I'll leave it at that.
 
bagdiver said:
Sometime recently, there was a thread about what information to leave to survivors if timeshares were part of the estate. That information would be of use with this topic but I am unable to find the discussion. Any help would be appreciated.
Thanks!
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This month, there was a great article in Timesharing Today about what to do with estate planning of timeshares and all the ins and outs if someone dies and leaves it to heirs and the risks of that. The article said that with weeks, that is deeded real estate so it would be treated differently than points in a vacation club. I’d recommend anyone interested in this topic to look up that article. I get a magazine subscription on paper so not sure if ther article is available online.
 
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TravelTime said:
This month, there was a great article in Timesharing Today about what to do with estate planning of timeshares and all the ins and outs if someone dies and leaves it to heirs and the risks of that. The article said that with weeks, that is deeded real estate so it would be treated differently than points in a vacation club. I’d recommend anyone interested in this topic to look up that article. I get a magazine subscription on paper so not sure if ther articler is available online.
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Looks like a trip to the library is in order... http://news.hospitality-1st.com/TSTodayJoin-050318.html
Do they still have libraries?
 
Our Raintree membership is a RTU on an exit program that will reach it's end within about five years.

Our Winners Circle has resale value and will be easily disposed of, via sale or gift.

Our Diamond ownerships will be sold or given away; if that isn't successful, we will deed back.
 
silentg said:
We have 5 timeshares in 5 different places....We want to visit all of our timeshares next year if possible. As we age and find it difficult to use our timeshares we will sell or give them away. We are giving away one already.
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Pretty much what I did with my 6 Weeks in 6 different place. I used them on a declining basis and disposed of them one at a time in a very orderly manner. It took me about 3 years before I was rid of them all.

George
 
I'm just starting to put together a plan for my timeshares. I have Starwood and Wyndham. Some of my points are deeded weeks and I am polling my relatives to see whether they want to participate in a family trust and make use of the good things I have. They can use them or rent them out to recoup MFs. But, it's my understanding that deeded weeks are a different animal so I may have to give those away separately if family members don't want my other timeshares. If I don't put the rest of the undeeded points into my living trust document (don't pour-over those) the heirs can refuse to accept them. I can use all the advice anyone wants to offer! (I do have that article in the Timesharing Today and will see if I can make good use of that.)
 
Our timeshares are held in a joint revocable living trust. Will either my spouse (upon my death) or our children (when both of us die) have the option to reject one or all of timeshares upon death with no obligation? What about the trust? Will there be an estate obligation?
 
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