The timeshare resale market can be tough, and many timeshare owners spend months or even years trying to sell unwanted timeshare. Many of these timeshare resale companies will charge fees for listing available timeshares, which can end up being a costly process – especially when you consider that a final sale is never guaranteed. For timeshare owners looking for a quick way to get out of maintenance and membership fees, timeshare donation is an excellent option. The only drawback to this approach is that most often you will need to own the timeshare outright, i.e. no longer be making any payments on the principal amount of the timeshare.
Why donate your timeshare?
- It costs nothing.
- The process involves a few pages of simple and easy paperwork.
- You will receive a tax write-off based on the value of your donation.
- Save money in broker’s fees you would have spent on a sale.
- No more maintenance fees, taxes, or special assessments.
Your tax write-off is based on fair market value of the timeshare, not the value it is resold at, allowing you to get the highest deduction possible. Some simple calculations will help you to determine whether or not it is more efficient for you to sell your timeshare outright for a low price, or take a tax deduction based on the market value of your timeshare; any timeshare valued over $5000 requires a written appraisal. For example, someone in the 33% tax bracket with a timeshare valued at $6000 will receive a tax write-off of $1980, whereas that same timeshare can expect to be purchased on the resale market for between $200-$2000.
Unfortunately charities will not always accept every timeshare donation, so your best shot at becoming a successful donor is if you own your timeshare outright, have a highly sought after week, and the resort is in a popular travel location.
Read Charities Accepting Timeshare Donations for a list of non-profit organizations that accept time share.