Should I transfer ownership back to Marriott or try to sell on TUG

[baharrington]

I have a Gold week at Frenchman's Cove in USVI. We've enjoyed it for years and now we are getting older, kids don't want it, ect. Marriott allows us to transfer the property back to them without cost or compensation, they just accept it back, and I think that may be a quicker, safer, option over trying to find a buyer and maybe getting some $2000 if I'm lucky. Maintenance fees are higher than that so if it take more than a year I lose money. Are there any disadvantages to property transfer back to Marriott? For example, could selling for a loss have tax advantage that I lose if I just give it back?

Any advice?

BAH

 

[GetawaysRus]

Some links for you to look at:

Income Tax Advice for Timeshare sales and rentals provided by a Certified Public Accountant

Income Tax advice for Timeshare owners

tug2.net

Any profit on the sale of your timeshare is taxable. If you sell at a loss, the loss is normally not deductible.

Profit on sale is treated as capital gain, subject to favorable tax rates if owned for more than one year. For gain purposes, your cost is generally your original cost, plus additions for the following items: (1) closing costs incurred when you purchased your timeshare, (2) the portion of your annual maintenance fee (for all years owned) allocated to capital reserves or used specifically for capital improvements (such as a new roof), and (3) any special assessments for capital improvement purposes which you paid. This amount should be reduced by any depreciation expense in years you rented the timeshare.

If you (and/or relatives or friends) use the timeshare, exchange it or let it go unused, a loss on sale will be personal and not deductible, just as a loss on the sale of your home or your car would not be deductible. Even though your intent might be to hold it as an investment, your personal use results in no tax loss being allowed upon sale.

If you regularly rent the timeshare to others, a loss on sale might be an allowable business loss. If you have an allowable business loss on sale of your timeshare, it is deductible as an ordinary (non-capital) loss.

https://ttlc.intuit.com/community/t...e-loss-on-the-sale-of-a-second-home/00/30609#

www.redweek.com/resources/articles/tax-aspects-selling-timeshare

 

[tschwa2]

It may be too late for them to accept it back without paying 2021 MF's at this time. If this is the case you would pay 2021 and would have use of the week to use, rent out or deposit it. I think finding someone to pay closing costs, 2021 MF and pocket more than $500-$1000 would be overly optimistic. If you go that route make sure you have the best possible week reserved.

If it were me I would contact Marriott ASAP and see if you can give back without paying for 2021.

If the answer is no, and you have no use or desire for the 2021 week, I would start advertising ASAP perhaps as a giveaway (or something modest) with the buyer paying all closing fees and reimbursing you for 2021 MF. If you get no takers than contact Marriott again in 2021 and start the give back process.

If on the other hand you aren't in a hurry to get rid of it and will use your 2021 week, then you may want to put it up for sale at $1500-2000 plus closing with use starting in 2022 or $1500 plus closing and MF reimburse with use starting in 2021. I would still revisit the give back by July if you don't find a buyer and are ready to give back.

 

[GrayFal]

If you were going to give it for free back to Marriott why not offer it for free here on TUG, you can offer to pay closing costs and the new owner would get use of 2021 week by paying/reimbursing the 2021 Maint fee. Or their usage could start in 2022 and you could deposit, rent or use 2021.

I have the name of someone who does USVI St Thomas closings if you need it. The deed has to be recorded on island.

 

[IngridN]

It may be too late for them to accept it back without paying 2021 MF's at this time. If this is the case you would pay 2021 and would have use of the week to use, rent out or deposit it. I think finding someone to pay closing costs, 2021 MF and pocket more than $500-$1000 would be overly optimistic. If you go that route make sure you have the best possible week reserved.

If it were me I would contact Marriott ASAP and see if you can give back without paying for 2021.

If the answer is no, and you have no use or desire for the 2021 week, I would start advertising ASAP perhaps as a giveaway (or something modest) with the buyer paying all closing fees and reimbursing you for 2021 MF. If you get no takers than contact Marriott again in 2021 and start the give back process.

If on the other hand you aren't in a hurry to get rid of it and will use your 2021 week, then you may want to put it up for sale at $1500-2000 plus closing with use starting in 2022 or $1500 plus closing and MF reimburse with use starting in 2021. I would still revisit the give back by July if you don't find a buyer and are ready to give back.

It's too late to give back to Marriott this year. You will need to pay 2021 maintenance fees but have use of the unit in 2021. We are getting rid of one of ours and Marriott advised it takes 4 months to close. I had one week to make a decision and timing was too tight. We'll get rid of it this year but will have use.

Ingrid

 

[samara64]

I would just deed it back. 1K or 2K are really not worth it.

Since you are past Sep 2020 deadline. Try to sell it as you have to pay MF for 2021 anyway. If it does not sell by Aug 21, I would deed it back.