While your timeshare may have been a source of enjoyment for your family at first, it’s common to eventually feel that its use has run its course. There are many reasons why you may find your timeshare has become a burden: you may have fallen on tough financial times, your children may be grown up and you no longer take family vacations, your vacation preferences have changed, or you can no longer afford the rapidly escalating annual maintenance fees. Regardless of your reason for wanting to get rid of your timeshare, you’re most likely evaluating a variety of different options. One may be donating your timeshare to charity.
In theory, donating your timeshare to charity seems like a great plan. You get to unload an unwanted financial burden and a charitable organization may be able to experience some financial benefit – a true win-win for all involved. Unfortunately, the reality is quite different. Donating a timeshare to charity is a complicated process that often is too costly to be worthwhile for either party.
The greatest challenge you’ll find when trying to donate your timeshare is that most charitable organizations don’t want it. The financial burdens that have most likely contributed to your desire to get rid of your timeshare also make the property undesirable to a charitable organization:
In the rare instance that a charitable organization may be interested in your timeshare donation, the mortgage must be fully paid off and you must be current on all maintenance fees. If you’ve fallen behind on any of these payments, it will be extremely unlikely that any organization will consider taking your donation.
One of the primary benefits of making charitable donations is that you can claim a tax deduction for your generosity. Unfortunately, timeshare donations often fail to result in a sizable deduction. The IRS only allows you to claim the fair market value of the timeshare at the time of your donation, minus the amount of any depreciation deductions on the property (this typically only occurs if you rent out your timeshare prior to donating it).
The IRS considers the fair market value of your timeshare to be the amount you can receive for selling the timeshare at the time of the donation. Due to the fact that most timeshares have almost no resale value, the fair market value will be negligible in most cases. Therefore, you’re likely to receive very little, if any, tax benefit for your timeshare donation.
In the rare instances where a timeshare has maintained any market value, the process for donating the property to charity is rather complex. You’ll need to complete appraisals, fill out a variety of forms, and often pay costly transfer fees. This process may not be worth the tax deduction you’re actually able to claim.
If you’re considering donating your timeshare to charity, you must be wary of scams. There are many companies out there that will promise to handle the donation process for you in exchange for a rather costly upfront fee. It’s common to pay these companies several thousand dollars before knowing whether they can find an organization to accept your donation. Often, this will result in you being out the money you paid to the company while still being stuck with an unwanted timeshare.
For this reason, it’s always best to handle the donation process yourself and deal directly with any charitable organization with whom you’d like to give your timeshare to.
If you choose to donate your timeshare to charity, we recommend you adhere to the following tips to protect yourself throughout the process:
Donating your timeshare to charity is a time consuming, complicated process. In many instances, you may have difficulty finding a charity interested in your timeshare and even if you do, there are many potential pitfalls that make this strategy a risky endeavor. If you’re ready to be free of the burdens associated with timeshare ownership, you have another option – cancel your timeshare.
At Timeshare Termination Team, we’ve helped many families just like you safely, legally and permanently cancel their timeshare. We’ll carefully review the terms of your timeshare contract and work with our in-house legal team to design a customized exit strategy tailored to your unique situation. This process has helped us achieve a 100% success rate with our clients, allowing us to offer you our Money-Back Exit Guarantee™. This ensures that we’ll safely, legally and permanently get you out of your timeshare or you’ll receive a full refund.
You’ll also benefit from our exclusive You First Approach™ which places your needs and goals at the forefront of the process. As part of this approach, you’ll receive the education and tools necessary to make an informed decision about your options.
You deserve to live life on your terms, and that includes being free to choose the way you take your vacations. Timeshares represent a significant financial burden that place a great deal of restraints on your travel options. If this arrangement no longer meets your needs, you have options. At Timeshare Termination Team, we’re ready to help you start the journey toward freedom from timeshare ownership.
Please contact us today to schedule a free consultation. We can help you get rid of your timeshare once and for all.
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