Getting rid of your timeshare

Here's how THEIR scam/bogus timeshare donation works (from their website):

You choose a title escrow closing company.

You deposit their fee (usually about $400) in their escrow account.

jayjay says: Any credible timeshare transfer closing/escrow company wouldn't touch this scam with a ten foot pole.

.

****YOU DEPOSIT OUR $500 SERVICE FEE IN THEIR ESCROW ACCOUNT . ****

jayjay says: Doesn't look like you're a non-profit organization to me .... $500 service fee ?????

. ****Only after the deed is in our name and you are FREE do they send the deed and our fee to us.

jayjay says: Who's name is that?

• We send you a fully legal IRS donation receipt for $5,000.

jayjay says: Illegal .... why would a person give their timeshare to you and pay $900 in doing so if the timeshare is worth zero and face getting into deep trouble with the IRS ????? In other words the IRS donation receipt for $5000 is bogus and the IRS will catch up to you and the socalled donor eventually .... I can guarantee you that.

. We are a non-profit charity.

jayjay says: Yeah right, and I'm Santa Claus.

• We don't resell your timeshare.

jayjay says: They let the timeshare go into foreclosure for nonpayment of maintenance fees HOWEVER the timeshare will never be transferred into another entity's name .... the timeshare will still be in the owner's name and the owner will still be responsible for all future maintenance fees

• We don't use or even rent your timeshare.

jayjay says: How can you when it will go into foreclosure???

• We hold title in our name for 36 months before we offer it back to the resort.

jayjay says: And in that 36 months you will not pay the maintenance fees and the timeshare resort will go into foreclosure.

• The resort send their bills to us, just like you.

jayjay says: Who is us and what exactly do you pay? Ah, you answered my question below.

• We don't pay them, just like you can.

jayjay says: Now we're getting to the nitty gritty of just how you say your scam works.... you don't pay them any future maintenance fees so you don't care if the timeshare goes into foreclosure ... to hell with all the other owners that do pay.

• The resort sends us to collection and ruins our credit, just like you.

We don't use credit so we don't care.

jayjay says: It's evident that you don't care and that you have zero scruples/integrity as a human being .... all you do is force all paying owners of the resort to take up the slack via your scam.

• Without selling it we get nothing in the deal.

jayjay says: You get $500 .... liar.

• We accept a $500 cash donation from you to do this service.

jayjay says: BS personified.

• You're FREE. We get $500. The resort complains and gets title back in 36 months.

jayjay says: No, the owner it NOT free .... like I said he/she will more than likely still own the timeshare and will be notified when the resort sends out yearly maintenance fee bills.

• The IRS says you get a full $5,000 donation credit if we keep it for 36 months and if you're in a 25% tax bracket you'll get $1,250 back as a tax refund.

jayjay says: One more time this is illegal .... they can't get credit for a donation that's worth nothing .... you're setting up any future clients that may be buying into your BS with getting into deep s--t with the IRS.

The scam website was copyrighted only a little over a year ago (Copyrighted 06/14/2010 CHT, Inc. Las Vegas, NV), however new timeshare scams pop up everyday .... this scam needs to be reported to the NV Attorney General.

Beware - this company is a fraud!!!!

lucyd21 wrote:

lghtm wrote:

Why didn't you just sell it to me?? Wow I can't see to find a share to buy and you people are just giving them back???

Are you serious about wanting to buy one? I have listed mine here for a few mo nths. Only want a couple of thousand for it. Please contact me, if interested. I paid $35th. some years ago, would be happy with just $2,000 or so. Interested?

In this economy getting $2000 for a timeshare is rare unless it's a very high demand resort and a very high demand week (supply and demand). Some timeshares cannot even be given away for free since maintenance fees last forever and go up each year in most cases.

It's NOT a great service at all....it will cost you money and it's a scam.

jayjay, traudem, lucyd21,

I thank you for exemplifying childish discussions. When you began by challenging specifics of legality and were presented with specific answers and references from the IRS and the law, you resorted to name calling and wild statements with no merit or validation. If you have to act like children, find a different website.

Since you feel it's important to continue being judgmental in ignorance I suggest a simple test. Go to our website and review everything there. Challenge specific legal issues with other legal references. Check out the two companies we list as closing escrow companies. Challenge their legality, process, and proper business ethics. As we've said, we are only the final recipient, not the processor. Contact them to see why they do timeshare transfers for owners to us.

donp196,

I applaud your original purpose and post. It is a good way to divest oneself of a timeshare. One of the reasons we do what we do is because too many resorts are NOT concerned about their owners and leave them out to hang.

As for our responsibility to other owners in the HOA or the resort directly, we feel no responsibility to anyone on this basis after the original owner has usually tried and failed to find support or help from the other "responsible" owners. Individual's (that includes businesses, corporations, NPOs, etc) have rights and one of those rights is to fail financially and suffer the legal consequences. Just because someone screams that it's illegal, unethical, fraudulent, or crooked, the law says differently. Until the law changes, individual will continue to have those rights guaranteed by the law. The reverse of this is to return to debtor's prisons or arrange for the government to guarantee to bail out any final owner of a timeshare when everyone else bail.

drk14 wrote:

jayjay, traudem, lucyd21,

I thank you for exemplifying childish discussions. When you began by challenging specifics of legality and were presented with specific answers and references from the IRS and the law, you resorted to name calling and wild statements with no merit or validation. If you have to act like children, find a different website.

Since you feel it's important to continue being judgmental in ignorance I suggest a simple test. Go to our website and review everything there. Challenge specific legal issues with other legal references. Check out the two companies we list as closing escrow companies. Challenge their legality, process, and proper business ethics. As we've said, we are only the final recipient, not the processor. Contact them to see why they do timeshare transfers for owners to bail.

Your bogus donation company is a SCAM, period. One can't deduct a $5000 deduction on IRS taxes when the timeshare is worth zero .... you will be caught eventually.

I'm disappointed that Redweek continues to permit you to post your scam company in their forums.

jayjay wrote:

drk14 wrote:

jayjay, traudem, lucyd21,

I thank you for exemplifying childish discussions. When you began by challenging specifics of legality and were presented with specific answers and references from the IRS and the law, you resorted to name calling and wild statements with no merit or validation. If you have to act like children, find a different website.

Since you feel it's important to continue being judgmental in ignorance I suggest a simple test. Go to our website and review everything there. Challenge specific legal issues with other legal references. Check out the two companies we list as closing escrow companies. Challenge their legality, process, and proper business ethics. As we've said, we are only the final recipient, not the processor. Contact them to see why they do timeshare transfers for owners to bail.

Your bogus donation company is a SCAM, period. One can't deduct a $5000 deduction on IRS taxes when the timeshare is worth zero .... you will be caught eventually.

I'm disappointed that Redweek continues to permit you to post your scam company in their forums.

jayjay wrote:

Your bogus donation company is a SCAM, period. One can't deduct a $5000 deduction on IRS taxes when the timeshare is worth zero .... you will be caught eventually.

jayjay wrote:

I'm disappointed that Redweek continues to permit you to post your scam company in their forums.

traudem wrote:

Could not agree more, I did some checking and am able to confirm all your points.

If you're going to spout opinions, don't be such idiots to think people will believe it simply because you state it loudest. We quoted IRS publication and law. Please grant others the same mature thoughtful opportunity so they can read your sources for themselves.

Otherwise, I think this discussion has shown true value for those wanting actual references, and enabled others to see the immaturity exposed by nameless, egotistical, and ill informed children.

Oh, by the way, why don't you put me out of business and buy all the timeshares people want to unload? After all, you are so experienced at buying and selling timeshares you know how to make it easy and profitable. (Hmm, actually maybe you are. You sound an awful lot like a resort rep.)

It's been a pleasure, boys. Time to pick up your toys and head home.

From a very reputable CPA, a Tug (Timeshare User's Group) advisor/moderator, and an expert in the field of timeshares, charities and tax deductions:

“Should I donate my timeshare to charity?” That often translates to, “I can’t sell my timeshare and have been told the tax benefit may exceed the sales price on the open market.” The answer is "Yes!", if you have a charitable motive and "No!", as it relates to that expected tax benefit.

If donating a deeded timeshare, the deductible contribution amount will normally be equal to the Fair Market Value (FMV) on the date of donation. That’s the price that an arms-length buyer and seller in the timeshare resale market would agree upon, not what the developer is charging for that same week".

I REST MY CASE .... THE FAIR MARKET VALUE OF A TIMESHARE BEING DONATED TO YOU IS ZERO .... ONE CANNOT DEDUCT $5000 ON A WORTHLESS TIMESHARE. HOW MANY TIMES DO I HAVE TO STATE THIS TO YOU. YOU WILL BE CAUGHT EVENTUALLY FOR TELLING LIES AND YOUR CLIENTS WILL BE BILLED BY THE IRS FOR BACK TAXES PLUS INTEREST IF THEY DO BUSINESS WITH YOU.

AS I STATED, NO REPUTABLE CLOSING COMPANY WOULD TOUCH YOU AND YOUR BUSINESS WITH A TEN FOOT POLE.

jayjay wrote:

From a very reputable CPA, a Tug (Timeshare User's Group) advisor/moderator, and an expert in the field of timeshares, charities and tax deductions:

“Should I donate my timeshare to charity?” That often translates to, “I can’t sell my timeshare and have been told the tax benefit may exceed the sales price on the open market.” The answer is "Yes!", if you have a charitable motive and "No!", as it relates to that expected tax benefit.

If donating a deeded timeshare, the deductible contribution amount will normally be equal to the Fair Market Value (FMV) on the date of donation. That’s the price that an arms-length buyer and seller in the timeshare resale market would agree upon, not what the developer is charging for that same week".

I REST MY CASE .... THE FAIR MARKET VALUE OF A TIMESHARE BEING DONATED TO YOU IS ZERO .... ONE CANNOT DEDUCT $5000 ON A WORTHLESS TIMESHARE. HOW MANY TIMES DO I HAVE TO STATE THIS TO YOU. YOU WILL BE CAUGHT EVENTUALLY FOR TELLING LIES AND YOUR CLIENTS WILL BE BILLED BY THE IRS FOR BACK TAXES PLUS INTEREST IF THEY DO BUSINESS WITH YOU.

AS I STATED, NO REPUTABLE CLOSING COMPANY WOULD TOUCH YOU AND YOUR BUSINESS WITH A TEN FOOT POLE.

traudem wrote:

jayjay wrote:

From a very reputable CPA, a Tug (Timeshare User's Group) advisor/moderator, and an expert in the field of timeshares, charities and tax deductions:

“Should I donate my timeshare to charity?” That often translates to, “I can’t sell my timeshare and have been told the tax benefit may exceed the sales price on the open market.” The answer is "Yes!", if you have a charitable motive and "No!", as it relates to that expected tax benefit.

If donating a deeded timeshare, the deductible contribution amount will normally be equal to the Fair Market Value (FMV) on the date of donation. That’s the price that an arms-length buyer and seller in the timeshare resale market would agree upon, not what the developer is charging for that same week".

I REST MY CASE .... THE FAIR MARKET VALUE OF A TIMESHARE BEING DONATED TO YOU IS ZERO .... ONE CANNOT DEDUCT $5000 ON A WORTHLESS TIMESHARE. HOW MANY TIMES DO I HAVE TO STATE THIS TO YOU. YOU WILL BE CAUGHT EVENTUALLY FOR TELLING LIES AND YOUR CLIENTS WILL BE BILLED BY THE IRS FOR BACK TAXES PLUS INTEREST IF THEY DO BUSINESS WITH YOU.

AS I STATED, NO REPUTABLE CLOSING COMPANY WOULD TOUCH YOU AND YOUR BUSINESS WITH A TEN FOOT POLE.

Amen!!! Once again, you are appreciated and let's hope the public understand the facts and "thank you"!

You're most welcome .... my motivation for posting on Redweek's forums is to warn anyone interested in the word "timeshare" to be aware of the many scams out there in that industry ..... new ones pop up everyday, especially in this bad economy.

Let's look at what the IRS says:

(The following verbiage has been taken almost exclusively directly from IRS documents) Internal Revenue Service Review of Appraisals Real Estate

(Everything down to the Summary is directly quoted from IRS publications)

In general, there are three main approaches to the valuation of real estate. An appraisal may require the combined use of two or three methods rather than one method only.

Cost or Selling Price of the Donated Property The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. . .

1. Comparable Sales “Selection of Comparable Sales. . . the amount of weight given to a sale depends on the degree of similarity between the comparable and the donated properties. The degree of similarity must be close enough so that this selling price would have been given consideration by reasonably well-informed buyers or sellers of the property.” (Publication 561 -Determining the Value of Donated Property)

Unusual Market Conditions or example, liquidation sale prices usually do not indicate the FMV. Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV. (Publication 561 - Determining the Value of Donated Property)

2. Capitalization of Income (Doesn’t apply)

3. Replacement Cost New or Reproduction Cost Minus Observed Depreciation This method, used alone, usually does not result in a determination of FMV. When the replacement cost method is applied to improved realty, the land and improvements are valued separately.

Qualified Appraisal Generally, if the claimed deduction for an item or group of similar items of donated property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser. You must also complete Form 8283, Section B, and attach it to your tax return. See Deductions of More Than $5,000, earlier.

A qualified appraisal is an appraisal document that: * Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal standards, * Meets the relevant requirements of Regulations section 1.170A-13(c)(3) and Notice 2006-96, 2006-46 I.R.B. 902 (available at http://www.irs.gov/irb/2006-46_IRB/ar13.html), * Relates to an appraisal made not earlier than 60 days before the date of contribution of the appraised property, * Does not involve a prohibited appraisal fee, and * Includes certain information (covered later).

Form 8283 Generally, if the claimed deduction for an item of donated property is more than $5,000, you must attach Form 8283 to your tax return and complete Section B.

Purpose of Form Donee organizations use Form 8282 to report information to the IRS and donors about dispositions of certain charitable deduction property made within 3 years after the donor contributed the property. (Form 8282 - Donee Information Return (Sale, Exchange, or Other Disposition of Donated Property)

Appraisals Appraisals are not necessary for items of property for which you claim a deduction of $5,000 or less. (Publication 561 - Determining the Value of Donated Property)

For each comparable sale, the appraisal must include the names of the buyer and seller, the deed book and page number, the date of sale and selling price, a property description, the amount and terms of mortgages, property surveys, the assessed value, the tax rate, and the assessor’s appraised FMV. . . . Only comparable sales having the least adjustments in terms of items and/or total dollar adjustments should be considered as comparable to the donated property.” (Publication 561 - Determining the Value of Donated Property)

Summary: 1. Fair Market Value (FMV) has very specific and legal meaning in the IRS. 2. If the property is sold for cash, the sale price must determine the FMV. 3. Based on Form 8282, the time limit for this sale extends to 36 months from the date of donation. Thereafter, it doesn’t apply to valuation. 4. Only a licensed and qualified appraiser can give you a FMV. What you feel it’s worth based on your depressed sale circumstances has no bearing on the deduction you can claim. 5. That qualified appraisal must be based on comparable sales (items and conditions, not circumstances) with very specific quoted details of information generally only available at court recorder’s offices. 6. A donation value from $500 to $5,000 can be granted if there is no specific sale price for the donated item. 7. If the title is held for more than 36 months, the $5,000 non-appraisal donation credit can be taken with little risk of audit. The deduction is granted immediately and only subject to change if it is later sold for cash within 36 months of the donation date.

Finally, What if you do face an audit? Here are the criteria required to pay a penalty.

Penalty 20% penalty. The penalty is 20% of the underpayment of tax related to the overstatement if: • The value or adjusted basis claimed on the return is 200% (150% for returns filed after August 17, 2006) or more of the correct amount, AND (emphasis added) • You underpaid your tax by more than $5,000 because of the overstatement. 40% penalty. The penalty is 40%, rather than 20%, if: • The value or adjusted basis claimed on the return is 400% (200% for returns filed after August 17, 2006) or more of the correct amount, AND (emphasis added) • You underpaid your tax by more than $5,000 because of the overstatement.”

In other words, unless the error caused you to write off such a large amount that you actually underpaid your taxes by $5,000 based on the overstatement of value alone, you are no subject to a penalty.

Opinions may be interesting but they aren't informative or accurate unless backed up with specific references others can trace. Let's see your references.

-----

Timeshare Relief and many other affiliates charge $4,000 or more to take your timeshare from you. They are not granted the right to charitable donation credit. Don't believe you can write it off as a bad investment. The IRS will nail you on that. The key is to make sure you continue to control and keep your money if you don't get free from your timeshare. Any real estate closing company will hold your funds in an escrow account for return to you if the deed doesn't go through. Make sure you work with a licensed title closing company.

If you have specific question on the process I'd be happy to have you contact me directly.

I have been talking with Josh. He wants $2,000 to take my fixed week. How long did it take/ Are you sure Wyndham has made the transfer and you have no annual fees?

Bill

billhinton@gmail.com

770 597 3958

billh423 wrote:

I have been talking with Josh. He wants $2,000 to take my fixed week. How long did it take/ Are you sure Wyndham has made the transfer and you have no annual fees?

Bill

billhinton@gmail.com

770 597 3958

I was responding to someone who said she was sucessful. Thanks so much for your advice.

billh423 wrote:

Why would you EVER pay someone $ 2,000 "to take your week"???? Don't you know, it's just another big scam????

One interesting and illustrative aspect of this forum is the wild opinions offered without any reference. Words have meanings. Unfortunately too many people forget that.

A SCAM? - Here's an online direct quote definition.

World English Dictionary scam (skæm) [Click for IPA pronunciation guide] — n 1. a stratagem for gain; a swindle — vb , scams , scamming , scammed 2. ( tr ) to swindle (someone) by means of a trick

Collins English Dictionary - Complete & Unabridged 10th Edition 2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009

So the question is whether this was a stratagem to swindle or cheat you out of your money with no follow through result you desired? That's what you need to find out.

On the other hand, if you understand and agree that it's worth $2,000 to pay to someone else who will take title from you so you're finally free of your timeshare and the other party does so, you're finally free. That's not a scam. That's a business agreement. Both parties perform to the others satisfaction and gain what they desire.

Of course, if a person is greedy or ignorant and feel they are owed freedom plus cash in their pocket it become obvious in their dialogue. Because they don't like the process, they flame the proposal instead of provide references for personal review.

If you got what you wanted - freedom - and that's worth the cost to you, it's legal, ethical, and definitely NOT a scam.

On the other hand, if the labeler of scam questions why you should pay $2,000, let him provide clear and precise instructions for you and others on how to divest yourself of your particular timeshare on a profitable basis. After all, he must be speaking from experience and knows how to do it right. Is there some reason he's withholding that secret information from us?

drk14 wrote:

Timeshare Relief and many other affiliates charge $4,000 or more to take your timeshare from you. They are not granted the right to charitable donation credit. Don't believe you can write it off as a bad investment. The IRS will nail you on that. The key is to make sure you continue to control and keep your money if you don't get free from your timeshare. Any real estate closing company will hold your funds in an escrow account for return to you if the deed doesn't go through. Make sure you work with a licensed title closing company.

If you have specific question on the process I'd be happy to have you contact me directly.

The IRS is going to nail you for your scam eventually. Not only are you scamming the IRS, you're scamming any person that falls for your BS and you're scamming resorts and all paying owners because you have no intention of paying future maintenance fees and special assessments (the bread and butter of any resort). The paying owners have to take up the slack via higher and higher maintenance fees, but you couldn't give a DAMN about paying owners.

What goes around comes around = karma. You'll get yours one day, but I do have one major question .... how do you sleep at night.

Yesterday we received the second of two recorded quit claim deeds that we deeded back to our time share associations. I didn't want to post it until it was official and recorded. We were also skeptical that it was going to be this easy. We just contacted our home resorts and located the right person to speak to about deeding them back. They both agreed to take back our units with just a quit claim deed. We were required to be up to date on all of our fees and assessments. They only asked us to pay the years taxes and a minimal processing fee. We didn't expect any tax write off. We are happy to just unburden ourselves of the yearly maintenace fees and future assessments. Our lives have changed and we don't want to travel that much anymore and trying to get the exchange we wanted from RCI was nearly impossible since they started selling the good weeks on the open market. Our advice to anyone wanting to rid themselves of their obligations to a time share is to first call the office and ask them to take back the property. Don't play games with the IRS and don't expect anything other than getting rid of your financial obligation. Yes it was just that easy for us and we sleep better at night not worrying if the IRS will come after us down the road for taking a questionable deduction. If they hadn't taken back our units then we might have used the services of a company and worry that the transaction actually went through. Good Luck to anyone else trying to get rid of their timeshares.

donp196 wrote:

Yesterday we received the second of two recorded quit claim deeds that we deeded back to our time share associations. I didn't want to post it until it was official and recorded. We were also skeptical that it was going to be this easy. We just contacted our home resorts and located the right person to speak to about deeding them back. They both agreed to take back our units with just a quit claim deed. We were required to be up to date on all of our fees and assessments. They only asked us to pay the years taxes and a minimal processing fee. We didn't expect any tax write off. We are happy to just unburden ourselves of the yearly maintenace fees and future assessments. Our lives have changed and we don't want to travel that much anymore and trying to get the exchange we wanted from RCI was nearly impossible since they started selling the good weeks on the open market. Our advice to anyone wanting to rid themselves of their obligations to a time share is to first call the office and ask them to take back the property. Don't play games with the IRS and don't expect anything other than getting rid of your financial obligation. Yes it was just that easy for us and we sleep better at night not worrying if the IRS will come after us down the road for taking a questionable deduction. If they hadn't taken back our units then we might have used the services of a company and worry that the transaction actually went through. Good Luck to anyone else trying to get rid of their timeshares.

Congratulations. Resorts that will accept "deed in lieu of foreclosure" (a.k.a. "deedback") are certainly the statistical exception rather than the rule, but I'm certainly glad that it has worked out for you in your particular situation.