Charities Accepting Timeshare Donations

[regtek124]

I'm trying to determine if it is possible to donate and transfer the title to my timeshare to a charitable organization? I'm not looking for a tax deduction, I only want to legally transfer the deed and stop my obligation for paying the maintenance fees. Some of the links found when doing a search get you to companies that want to sell timeshares!

 

[theo]

I'm trying to determine if it is possible to donate and transfer the title to my timeshare to a charitable organization? I'm not looking for a tax deduction, I only want to legally transfer the deed and stop my obligation for paying the maintenance fees. Some of the links found when doing a search get you to companies that want to sell timeshares!

No legitimate charity on Planet Earth wants any part of accepting a timeshare ownership as a "donation".

Let's be honest; timeshare ownership is a liability, not an asset. From a charity's standpoint, it is a unwelcome and unwanted burden, not a "gift". Charities are understandably not at all interested in taking over someone else's burden with its' ongoing financial obligations (i.e., maintenance fees). How would accepting that burden in any way help their cause, whatever that cause may be? They certainly don't need or want that unwelcome headache and that ongoing financial obligation any more than you do.

 

[tschwa2]

If you own a timeshare that you could easily rent for 2-3 times your MF and sell for $10,000-$25,000, you might find a charity willing to take it. They would probably prefer you to sell it yourself and then donate even half of what you made. Yes the top 0.5% of timeshares do have these types of values. If you can't give it away to anyone, then a charity certainly will not want the liability. So if you are asking the question, you probably don't own one of those top half a percent. No charity will accept it.

 

[TUGBrian]

https://tug2.net/timeshare_advice/can_I_donate_my_timeshare_and_get_a_tax_deduction.html

 

[LannyPC]

I only want to legally transfer the deed and stop my obligation for paying the maintenance fees.

Have you tried asking the resort if it will take your timeshare back? Have you tried selling it? Have you tried the free giveaway method here on TUG?

These methods will probably cost you a lot less than what a charity will charge you to "donate".

 

[bogey21]

I'm trying to determine if it is possible to donate and transfer the title to my timeshare to a charitable organization?

15 or 20 years ago there were legitimate charities that would take TS Weeks but not anymore.

George

 

[PDH]

Location
week
bedrooms
If it's a location that I can use you can donate it to my family.

 

[AwayWeGo]

Back when timeshare deeds had value (some may still be worth something, but not many), certain legitimate charitable organizations would accept timeshare donations.

These days, however, practically all the charities have caught on that timeshares are generally worthless & some even represent a negative value because of the associated fee obligations. As a result, charities no longer accept timeshare donations. (I'm guessing some charities learned that the hard way.)

But to fed-up timeshare owners looking for a way out, the idea of shucking off timeshares via charitable donation remains attractive, so much so that there are now bamboozles & hornswoggles out there whose biz plan is collecting big bux from timeshare owners looking to get out from under by giving their timeshare deeds to charity. The bamboozlers & hornswogglers simply add charitable-sounding names to their operations while continuing to roll fulll speed ahead.

So it goes.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[LannyPC]

...so much so that there are now bamboozles & hornswoggles out there whose biz plan is collecting big bux from timeshare owners looking to get out from under by giving their timeshare deeds to charity. The bamboozlers & hornswogglers simply add charitable-sounding names to their operations while continuing to roll fulll speed ahead.

...and then trying to convince donors that there will be a significant tax deduction that will compensate for the charges, thus making it seem to be the most economical option.

 

[theo]

...and then trying to convince donors that there will be a significant tax deduction that will compensate for the charges, thus making it seem to be the most economical option.

This bogus "tax deduction for a grossly inflated value" gig seems to have largely fallen by the wayside since the Feds went after James Tarpey and "Donate for a Cause" and put a stop to their phony, inflated so-called "appraisals".

Unfortunately, people who utilized that bogus DFAC "donation" route are now presumably identified to the IRS, potentially resulting in tax return scrutiny by (and some unwelcome conversation with) everyone's least favorite government agency.

In the final analysis, IRS regs are very clear that you can deduct fair market value for a legitimate donation. If you have to pay someone to take the timeshare (DFAC required four figures), its' fair market value is clearly and precisely zero.

 

[JudiZ]

I donated a week in New Hampshire to our local PBS station but I maintained ownership until the auction closed and the buyer and I arranged for the closing on our own (for which I paid). So my donation wasn't a drop and go, wash my hands of this. This was more than ten years ago and we did get a donation form that listed an absurd value for taxes. I did my due diligence and called both the station and the IRS (audited once and found faultless but I wouldn't want to experience the other way). Both the station and IRS said that the deduction was legal. Ironically, I wasn't desperate to be rid of the timeshare, I just had too many and love to support our the local PBS. Would never expect a deduction like that but might check on the auction angle knowing full well that an owner maintains ownership until the deed transfers.

 

[WVBaker]

This may have been covered however, has anyone ever thought of donating just the "use" of their week.

This is not trying to donate the ownership of the unit, just the use. There are a few 501-c's out there that are looking for weeks, to offer people as vacations.

Trying to figure out the IRS stance on this form of donation is daunting at best. I have no idea what amount, if any, you would claim as a donation/deduction.

 

[Jan M.]

This may have been covered however, has anyone ever thought of donating just the "use" of their week.

This is not trying to donate the ownership of the unit, just the use. There are a few 501-c's out there that are looking for weeks, to offer people as vacations.

Trying to figure out the IRS stance on this form of donation is daunting at best. I have no idea what amount, if any, you would claim as a donation/deduction.

I would think you could claim the maintenance fees for the week and the guest certificate. If it would typically rent for more than that and you could substantiate that you might be able to claim a greater amount.

 

[mtwingcpa]

This may have been covered however, has anyone ever thought of donating just the "use" of their week.

This is not trying to donate the ownership of the unit, just the use. There are a few 501-c's out there that are looking for weeks, to offer people as vacations.

Trying to figure out the IRS stance on this form of donation is daunting at best. I have no idea what amount, if any, you would claim as a donation/deduction.

Generally speaking, you are not allowed a deduction for the "use" of a unit because (in layman's terms) it is deemed to be a partial/incomplete gift. So I'd say no deduction for MFs or any other related expenses in that case.

 

[T_R_Oglodyte]

This may have been covered however, has anyone ever thought of donating just the "use" of their week.

This is not trying to donate the ownership of the unit, just the use. There are a few 501-c's out there that are looking for weeks, to offer people as vacations.

Trying to figure out the IRS stance on this form of donation is daunting at best. I have no idea what amount, if any, you would claim as a donation/deduction.

I would think you could claim the maintenance fees for the week and the guest certificate. If it would typically rent for more than that and you could substantiate that you might be able to claim a greater amount.

There is actually a very simple answer.

There is never a deduction allowed for the use of personal property. Never. Not allowed. Verboten. You can only claim a deduction when you transfer ownership of personal property.

This is very clearly laid out in the TUG timeshare and taxes article.

Note that this applies to any use of personal property, not just real estate. Suppose you have a pressure washer, that has a fair market value (what you could sell it for on Craig's List) of $200. You know of a nice qualified charitable organization that needs to have sidewalks and driveways cleaned. It's a four-hour job. Let's say a local tool rental company charges $100/hour for the rental of a pressure washer similar to yours. In lieu of renting a pressure washer, you take on the pressure washing job yourself. What can you deduct?

• if you use your pressure washer: $0.00.
  
• if you donate ownership of your pressure washer to the charity (and they accept it), and you then use their pressure washer to clean their sidewalk and driveway: $200 (the value of the pressure washer)

 

[chalee94]

This may have been covered however, has anyone ever thought of donating just the "use" of their week.

Trying to figure out the IRS stance on this form of donation is daunting at best...

it's extremely straightforward:

http://www.irs.gov/pub/irs-pdf/p526.pdf

Quote:
From page 9 under "right to use" property:

Partial Interest in Property


Generally, you can't deduct a charitable contribution of less than your entire interest in property.

Right to use property. A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible.

Example 1. You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.

Example 2. Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fundraising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule.

 

[JoeMO]

What if you donate a week to a charity, they sell it for $400, can't you claim the $400 as a deduction on your taxes?
If you donate a car and they sell it for $400, you can claim that. Is a TS different?

 

[SmithOp]

What if you donate a week to a charity, they sell it for $400, can't you claim the $400 as a deduction on your taxes?
If you donate a car and they sell it for $400, you can claim that. Is a TS different?

$400 for a non-cash contribution to a charity is not going to raise any red flags. Once you go over $500 there is an additional tax form required with appraisal value.




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[JoeMO]

Dave,
I am not so much concerned with raising any flags, but trying to determine what is allowed and not allowed. Maybe I should have given an example of $501 instead of $400.

Just trying to understand what is allowed and why.

Thanks,
Joe

 

[JoeMO]

I looked up the IRS rules and here is what it says. I do not think you can count the donation of a TS week according tho this.
Partial Interest in Property
Generally, you can't deduct a charitable contribution of less than your entire interest in property.
Right to use property
A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible.
Example 1.
You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.
Example 2.
Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fundraising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduction either, because she received a benefit equal to the amount of her payment.

 

[regtek124]

15 or 20 years ago there were legitimate charities that would take TS Weeks but not anymore.

George

Thanks to all for your replies