Donate a timeshare

As I have not been able to sell my timeshare, I am looking into donating it. Outfit that has called me is donatetimeshares.com. They are involved with wyattfoundation.org. (760-994-5233) and the person that called was Courtney K. Erwin (donatetimeshares.com) They also gave me their tax # which is 26-3744828

michaelk91 wrote:

As I have not been able to sell my timeshare, I am looking into donating it. Outfit that has called me is donatetimeshares.com. They are involved with wyattfoundation.org. (760-994-5233) and the person that called was Courtney K. Erwin (donatetimeshares.com) They also gave me their tax # which is 26-3744828

When you get cold calls out of the blue having anything to do with your timeshare ownership, be very wary. You will probably be asked to pay them a large upfront fee for them to take your timeshare.

We were in the same postion trying to donate our timeshare with no success. We belong to the NTOA ( National Timeshare Owners Association ) and I read an article about getting rid of your timeshare. They suggested just calling the timeshare and see if they would take it back, We called and the two timeshares took them back with just a quit claim deed and a very minimal fee. We are now free.

Be careful, check with your resort regarding their policies. The Wyatt Foundation has to agree to take ownership of the timeshare and guarantee payment of the yearly maintenance fees to the resort. Never pay an upfront fee to any company or "foundation" and make sure you check with your accountant or the IRS regarding the potential charitable contribution write-off. The IRS has very specific rules and regulations and chances are you are NOT entitled to write off the costs.

Your basic options are 1. Sell it for anything ($1) you can get 2. Get the resort to take title back 3. Find a normal charity that will resell it for you. They will tell you if they can and won't try if they don't think they have a buyer within 30 to 60 days. You get a tax write off for the cash they receive. 4. We are a different charity that actually takes title, but because we don't resell, rent or use the timeshare we charge a $500 fee to accept your title. It's done through your choice of any closing escrow company. They hold your funds in their escrow account until it's done. We are only the final recipient of the title and service fee check. This has been thoroughly discussed with legal references and childish opinionated rebuttals in anther thread "Getting rid of your timeshare". There's no need to go through all that here. 5. The next to last choice is to pay $4,000 or more to a company like Timeshare Relief or one of it's affiliates. Even they have been accused of not ending up taking the title. Lot's of discussions in this TUG. 6. The final choice is to ignore the bills, forget all the threats and understand that a timeshare foreclosure is nothing more than most other negative unpaid bill reports on your credit report. They can't come after you for anything else, take your house and children, or put you in debtor's prison. They don't announce to the world your deadbeat persona (that's illegal). It's simply a ding on your credit. If you're credit isn't that great or useful right now, maybe it's not such a big deal.

michaelk91 wrote:

As I have not been able to sell my timeshare, I am looking into donating it. Outfit that has called me is donatetimeshares.com. They are involved with wyattfoundation.org. (760-994-5233) and the person that called was Courtney K. Erwin (donatetimeshares.com) They also gave me their tax # which is 26-3744828

we have an appointment with donate time shares.com this saturday. please let us know if you are positive this is a total scam or give us the correct things to ask them. thanks

lindad549 wrote:

we have an appointment with donate time shares.com this saturday. please let us know if you are positive this is a total scam or give us the correct things to ask them. thanks

Let's be very clear here --- it's not that it's necessarily a "scam", per se. It's simply that they are going to ask YOU to pay THEM SEVERAL THOUSAND DOLLARS to take your timeshare week. Sound good?

The rest is just details...

lindad549 wrote:

we have an appointment with donate time shares.com this saturday. please let us know if you are positive this is a total scam or give us the correct things to ask them. thanks

They also might try to entice you with by saying that you can get a significant tax deduction that will compensate for the thousands of dollars you have to pay them.

Tax deductions for donated timeshares have been discussed ad nauseum on these boards. Basically, looking for a tax deduction is a complicated and risky venture.

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 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.

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.

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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.

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.

So you think that just because you charge less that your scam is legit ????? You operate the same scam as all the other postcard companies.

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.

Linda, how did your appointment with them go? Did you decide to do it? I had a conversation just the other day with them so I would be curious on your experience.

drk14 wrote:

Your basic options are 1. Sell it for anything ($1) you can get 2. Get the resort to take title back 3. Find a normal charity that will resell it for you. They will tell you if they can and won't try if they don't think they have a buyer within 30 to 60 days. You get a tax write off for the cash they receive. 4. We are a different charity that actually takes title, but because we don't resell, rent or use the timeshare we charge a $500 fee to accept your title. It's done through your choice of any closing escrow company. They hold your funds in their escrow account until it's done. We are only the final recipient of the title and service fee check. This has been thoroughly discussed with legal references and childish opinionated rebuttals in anther thread "Getting rid of your timeshare". There's no need to go through all that here. 5. The next to last choice is to pay $4,000 or more to a company like Timeshare Relief or one of it's affiliates. Even they have been accused of not ending up taking the title. Lot's of discussions in this TUG. 6. The final choice is to ignore the bills, forget all the threats and understand that a timeshare foreclosure is nothing more than most other negative unpaid bill reports on your credit report. They can't come after you for anything else, take your house and children, or put you in debtor's prison. They don't announce to the world your deadbeat persona (that's illegal). It's simply a ding on your credit. If you're credit isn't that great or useful right now, maybe it's not such a big deal.

I was looking to get rid of my two timeshares any we I could. I tried to sell them, give them away or doante them. I then read an article in Time Sharing Today that suggested contacting the timeshare office and asking them to take them back. I called the two offices and notified tham that I am going to get rid of them with or without their assistance. They both agreed to take them back through quit claim deeds. They only required that I be up to date on all my fees and assessments. They sent me the paperwork and I filled it out, had it notarized and sent it back. The only cost was paying the current years taxes and a minimal fee for processing. I now have two recorded quit claim deeds and I am completely free of any obligation to them. It was that easy. I would gladly have paid someone a moderate fee to take them off of my hands but there is no garantee they would be transfered out of my name. I would suggest to anyone wanting to get out of their timeshares to first contact the office and let them know you are getting rid of them and let them have the first offer. I am now free and relieved that I never have to deal with RCI again.

donp196 wrote:

I am now free and relieved that I never have to deal with RCI again.

Even if you still owned your timeshare(s), there would be no reason why you would "have to deal with RCI again". Timeshare owners never have to deal with RCI (or any other exchange company for that matter). RCI is merely an exchange company so that timeshare owners who can't use their regular weeks can try to exchange for use of another week somewhere in RCI's system (and I emphasize the word "try").

That aside, thanks for you experience showing that one does not need to pay a Post Card Company thousands of dollars to take their timeshare off their hands.

Unfortunately I made a bad mistake and extended my membership with RCI before they got greedy and started selling the good weeks on the open market. The timing was perfect my membership expires in January.

jayjay wrote:

So you think that just because you charge less that your scam is legit ????? You operate the same scam as all the other postcard companies.

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.

traudem wrote:

As several of us have stated on numerous occasions, you are the king of scam - FOLKS - wake up and stay away from this outfit.

Am I the only one who seems to see severe cranial thickening in the repeated responses without validation, references or justification? Ah, the wiles of children.

Please, everyone. Read for yourself. Balance what threats, accusations, opinions and idiocy are rampant without honest referenced rebuttal. I have given all of you, and will provide more if justified, actual real quotes from IRS publications, regulations, forms and THE LAW. Please find fault with their statements, not with what you think they should say. Give me something other than rash nose flicking to respond to or else grow up and accept reality.

I"m tired of resorts shafting individuals and families with no recourse. If resorts (or owners associations, if you like) truly felt anything for these people they would provide some reasonable solution. Since there is none, People have to use the law to protect themselves. After years of watching idiots touting the ridiculous notions that it's easy, can be done by everyone on every timeshare, and that if it's not done their way it must be sham, I've decided to stand up for their cause and give quote the law where relevant. Try it sometime. The only sham I see are those that wish to prolong the financial grief of people wanting out of their timeshares.

Actually, I sleep very well at night knowing I'm honest and legal in what I do to help owners who have tried and been unable to find normal expected relief for the actual source of their affliction - greedy, manipulative resorts who knowingly sell something with the express purpose of living forever on the mistakes of others through the "legal" applications of real estate law.

How do you sleep at night knowing your drivel may ruin someone's credit and financial security and that of their heirs solely because you don't seem to like an idea. Which resort do you work for?

drk14 wrote:

jayjay wrote:

So you think that just because you charge less that your scam is legit ????? You operate the same scam as all the other postcard companies.

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.

traudem wrote:

As several of us have stated on numerous occasions, you are the king of scam - FOLKS - wake up and stay away from this outfit.

Am I the only one who seems to see severe cranial thickening in the repeated responses without validation, references or justification? Ah, the wiles of children.

Please, everyone. Read for yourself. Balance what threats, accusations, opinions and idiocy are rampant without honest referenced rebuttal. I have given all of you, and will provide more if justified, actual real quotes from IRS publications, regulations, forms and THE LAW. Please find fault with their statements, not with what you think they should say. Give me something other than rash nose flicking to respond to or else grow up and accept reality.

I"m tired of resorts shafting individuals and families with no recourse. If resorts (or owners associations, if you like) truly felt anything for these people they would provide some reasonable solution. Since there is none, People have to use the law to protect themselves. After years of watching idiots touting the ridiculous notions that it's easy, can be done by everyone on every timeshare, and that if it's not done their way it must be sham, I've decided to stand up for their cause and give quote the law where relevant. Try it sometime. The only sham I see are those that wish to prolong the financial grief of people wanting out of their timeshares.

Actually, I sleep very well at night knowing I'm honest and legal in what I do to help owners who have tried and been unable to find normal expected relief for the actual source of their affliction - greedy, manipulative resorts who knowingly sell something with the express purpose of living forever on the mistakes of others through the "legal" applications of real estate law.

How do you sleep at night knowing your drivel may ruin someone's credit and financial security and that of their heirs solely because you don't seem to like an idea. Which resort do you work for?

YadaYadaYada .... more BS. One more time, no one hogties and forces anyone to sign on the dotted line when they purchase a timeshare, or anything else for that matter, and the financial responsibilities that go along with it.

That's like saying someone signed on the dotted line to buy a new car and then decided they didn't want it or the financial responsibilities (maintenance of the vehicle, car payments, tags etc) that goes along with that purchase. AND, a car depreciates bigtime the minute you drive it off the lot and most people know that, but a lot of cars were bought new (people like that new car smell and accept the hefty price tag that goes along with it).

This time I have to comment on the last posting. Near the end he states that it could affect your heirs. That is the same scare tactic that all of the scam outfits use. I didn't have much of an opinion about his charity operation until I read that line. If it's a legitamate charity operation then you don't need to use scare tactics. I advise anyone to investigate any comapny thoroughly before giving them any upfront money. I belong to the ( NTOA ) National Timeshare Owners Association. It's an organization of time share owners to protect their rights of ownership and to discuss issues in the industry that affect owners. Membership is open to everyone. Their website is www.nationaltimeshareownersassoc.com. I would advise all time share owners to look into joining. They give you a free subscription to Timesharing Today which is a newsletter that has articles written by members. It is the only organization that I know represents time share owners interests. They are the voice of timeshare owners. Please take the time to chech out their website.