Tax Benefits of Donating a Timeshare
Can I donate my timeshare to charity and get a tax deduction?
Yes, it is possible to receive a tax deduction for a timeshare donation, should your contribution qualify. In fact, many have feel that the tax benefits of donating a timeshare are almost as rewarding as the donation itself. Donate My Timeshare works directly with Give Back Charities, Inc. a 501c(3) charity organization, allowing you to potentially receive a tax write-off from a timeshare donation.
Once the donation is complete, we will provide you with paperwork of the transaction for when you file your taxes. As Donate My Timeshare does not provide tax assistance or advice, we recommend that you refer to your financial advisor or CPA to discuss if you qualify for a tax deduction. If you do qualify, your CPA can help you to file your timeshare donation tax write-off.
Timeshare Donation Tax Deduction – How it Works
The IRS states on Form 8283 that you are permitted to deduct a non-cash charity donation from your tax return, should you decide to itemize your taxes. This would apply to a timeshare property interest, should you donate a timeshare that is deeded. A right-to-use timeshare will not qualify for this type of deduction.
In order to potentially deduct a timeshare donation from your tax return, you must first determine the Fair Market Value of the timeshare (FMV). If your timeshare donation is valued at more than $500 you must file Form 8283. Your CPA can help you to file this form to ensure you receive the highest deduction possible.
If you believe your timeshare is worth more than $5,000, you will also need to get an appraisal to prove the value of your donated ownership. When you receive your appraisal, be sure to gain legal documentation from the appraiser of the exact value of a timeshare donation. It is also recommended that the appraiser states in writing that they will testify that this value is correct.
If you are claiming your timeshare donation write off to be under $5,000, you will not need an appraisal. However, it is never a bad idea to be sure of the value of any item you are donating including your timeshare.
It is suggested to work with a lawyer, CPA, or financial advisor to help you through this process. As Donate My Timeshare does not give tax advice or assistance, you will want to work with a CPA to ensure that you can receive a tax deduction when you donate a timeshare, and that your claim is submitted properly. Each situation and timeshare ownership is different; therefore it is important to gain a consultation from a licensed professional.
Note: This material is intended for general information and not to be used a financial or legal advice. Any mentions of a tax deduction presume that the timeshare property was purchased and used for individual use. The FMV of timeshare resales may differ from properties purchased by the developer as any potential deductions cannot be greater than the purchase price, unless claimed in a different format under a capital gain.