One timeshare exit option is to donate your timeshare to charity. This is a wonderful way to support a cause and gives the charity multiple ways to benefit from your donation. It can also reduce your taxes by giving you a donation to deduct at the end of the year.
Here are a few things to think about when donating your timeshare to charity:
Make sure the charity you select will accept your donation: Not all charities will accept a timeshare as a donation. If a charity does accept timeshares as a donation, they will usually require that any loans related to the timeshare are paid off prior to your donation.
Understanding your tax deduction: The value of your tax deduction depends on both the fair market value of your timeshare and how the charity can monetize it. To better understand the value of your tax deduction, you should ask the charity how they will utilize your timeshare.
Determining the fair market value of your timeshare: Finding the fair market value of your timeshare can be difficult. A few effective ways to determine the fair market value of your timeshare include:
- Contact a real estate agent who specializes in timeshare sales.
- Contact a company that sells timeshares and ask what they would pay for yours.
- Research what timeshares that are like yours are selling for online. Remember, details matter. Try and find timeshares with the same week, the same or similar resort, etc.
Potential costs associated with your timeshare donation: In some cases, a charity may require you to pay the costs associated with transferring your timeshare to their charity. Contact your timeshare developer to determine if there will be transfer costs and how much they are.
Contacting a tax professional: It is important to discuss your timeshare donation with a tax professional, such as your accountant. They will help make sure you are following the correct rules and procedures related to your timeshare donation.
Our advice: Donating your timeshare can be a fantastic way to make a charitable donation, earn a tax deduction, and exit your timeshare. The information above will help make this an easier process. We recommend starting by contacting your timeshare company, resort, or HOA to get the process started.