How do I get started in donating my timeshare?
There are 2 easy, hassle-free ways to gift:
1. Start your timeshare donation now! Fill out as much of the information as you can online. Then print out and sign the consent form that allows the closing company to discuss the details of the timeshare with your timeshare management company. Send your deed (if available) and the completed consent form to the following address:
Donate Timeshare Online
39111 Paseo Padre Parkway
Suite 301
Fremont, CA 94538
Or you may fax it to (510) 574-0786.
2. We can send you a paper application by mail that includes the necessary paperwork. Please call a donation specialist at (510) 744-1875 to request a packet or with any other questions regarding our program.
Once you have initiated the gift process, you may get a phone call from Donate Timeshare Online with further questions. In most cases, we review the information, search for a buyer, and when we are successful in finding a buyer, then Timeshare Closing Online will send you a deed to sign. Once Timeshare Closing Online receives the signed deed, the proceeds of the sale will go to Free At Last, or your chosen charitable organization.
No-Hassle Timeshare Gifts
Simple, easy and hassle-free.
All you have to do is give us some basic information over the phone, sign a form to let us talk to the resort management and send us a copy of your deed (if you don't have it available, we can get it from the local registry). Timeshare Closing Online will do all the work and even prepare the deed for you to sign after handling the paperwork and processing.
Who is FREE AT LAST?
Free at Last, a non-profit agency based in East Palo Alto, offers a full range of services from street outreach and intervention to bilingual substance abuse treatment, transitional housing and long-term aftercare to over 4,200 people ranging from adolescents to young adults and parents. The community-based model reduces the spread of HIV, breaks the cycle of addiction and incarceration, rebuilds families, fosters self-sufficiency through employment, and establishes a strong community of recovery.
Free at Last embodies a new model of recovery – "in the community, by the community and for the community. We believe people can recover at home, reclaiming and rebuilding our own community."
Read more about Free at Last.
What Does It Cost Free At Last?
Free At Last doesn't pay anything for this service. When you donate your timeshare, it costs the Free At Last Fund nothing. There are standard costs to check the title and brokerage fees to sell the property that are deducted from the sale price. A check is mailed to Free At Last Fund within days of the sale.
How will my donation help FREE AT LAST?
Addiction is as common as coffee in this society. But some forms of addiction erode integrity and health, undermine emotional and financial stability and seriously disrupt family life. Free at Last treatment programs reverse the self-destructive process, and clients gradually regain self-respect and awaken to possibilities they didn't conceive of before. It takes discipline, self-reflection, counselling, group discussion and mutual support, but clients turn around to help others.
Their programs serve over 4,200 people each year, predominantly African Americans, Latinos, and Pacific Islanders living in East Palo Alto, Belle Haven, North Fair Oaks, and Redwood City.
What are the benefits of donating my timeshare?
You Save Money: No more maintenance fees, no special assessments, no more broker fees, no closing costs, and/or timeshare bills. The donor may be charged a document retrieval fee if they are unable to produce a copy of their deed.
Absolutely NO UP-FRONT FEES!
The transaction is 100% guaranteed
We can start the process of transferring the ownership right away
you will no longer be responsible for the timeshare
you will no longer pay maintenance fees
you will receive a receipt from the charity and IRS forms to take to your tax preparer.
Will The Proceeds From My Gift Go To FREE AT LAST?
Yes. Before entering into this arrangement, we checked things out carefully and we arranged to have the proceeds of the gift (after standard selling expenses) go to FREE AT LAST. Donate Timeshare Online was specifically set up to handle these gifts. They ensure that FREE AT LAST receives a check within three weeks of the closing sale.
Who provides me with my gift receipt for tax purposes?
The non-profit charitable organization will provide you with your "gift-in-kind" tax receipt. However, we will deliver the gift receipt to you upon confirmation of your donated item.
I Can't Sell My Timeshare. How Do You Do It?
Selling timeshares on the resale market is disorganized and difficult. Many firms list timeshares for an upfront fee but actually sell few units. They make their money from listing fees, not sales. At Donate Timeshare Online we work with organizations like Timeshare Angels, Inc. who don't charge upfront fees for their services. Donate Timeshare Online was created explicitly to help FREE AT LAST and other charities accept gifts of timeshares.
Timeshare Angels, Inc. has an established network of timeshare agents in all 50 states, Canada, Mexico and the Caribbean and they have a proven track record of being able to sell most timeshares quickly and efficiently. They have established relationships and systems to easily and rapidly evaluate timeshares, check that the title is good, sell the property within 8-12 weeks and complete the gift.
As anyone who has tried to sell a timeshare probably knows, it can be difficult and expensive to sell these properties, so having a network and system in place is crucial. Timeshare Angels, Inc. is often able to accomplish this in a much shorter time than the owners can. While you will only deal with one or two timeshares in a lifetime, TSA may deal with hundreds each year. And because there are no upfront fees, it is risk-free to you!
What about Annual Fees and Mortgages?
All maintenance fees and charges must be current and fully paid at the time the gift is made. The timeshare needs to be free and clear of any outstanding mortgage. If the value of the timeshare is high and the mortgage is low, it is sometimes possible to work something out. However, this is the exception.
Will It Cost Me Anything?
While there are fees, they are generally covered by the buyer. This is when the timeshare is worth enough on the resale market to be sold and cover hard expenses for transfer of ownership, and the charity takes their proceeds for their organization's charitable works. There are some cases where timeshare is NOT worth enough on the resale market to cover hard expenses for transfer of ownership, and the donor chooses to contribute funds for hard expenses. Donate Timeshare Online donates their fee to the charity for their organization's charitable works. Once you have mailed in the required information, Timeshare Angels, Inc. handles everything for you. If you are unable to provide a copy of your deed or if any of the persons named on the original deed have died, there will be a small charge (less than $100) to you for drawing up a new deed. You do have to be current on your annual maintenance charges, but once the timeshare is accepted you will no longer be responsible for any expenses.
Do You Accept Timeshares Anywhere?
We can accept timeshare gifts in all 50 states, Mexico, Canada and the Caribbean.
Do You Accept Most Timeshare Gifts That Are Offered?
We find that 60-70% of timeshares will be accepted, usually within a few weeks of the time you get in touch with us. The timeshares that don't work are usually timeshares where there is an outstanding mortgage that the donor is unable to pay off, one with overdue annual maintenance fees or occasionally where the timeshare property has been allowed to deteriorate badly.
Are All Timeshares Sold?
We normally seek to find a buyer and complete the sale of the property within 8-12 weeks of the gift. Typically, we are able to accept and resell 60-70% of the gifts offered.
Like you, we want to see your gift turned into a way to help someone in need.
What Happens If You Can't Sell My Timeshare?
We try to avoid this situation, but it does happen occasionally. If TSA cannot find a buyer for the timeshare they will notify you and return the documents you have provided.
What if you don't live in the U.S.?
Non-US residents are welcome to donate timeshares. However, if you are interested in receiving a tax write-off for this donation in your home country you must first consult a tax advisor and find out if this donation would qualify for a write-off.
What is the Value of Timeshare Resales?
When a developer first opens a timeshare resort, properties commonly sell for $10,000 to $25,000. It will often take the developer 10 years or more to sell all of the original timeshare intervals at a given location.
This long sales cycle means that once someone owns a timeshare and wants to resell it, it can be quite difficult to find a buyer. If they can find a buyer at all, a good rule of thumb is that the resale value is roughly 10-25% of the original sale price and sometimes less.
Why do People Gift Their Timeshares to Help FREE AT LAST?
Our supporters want to help others that are less fortunate and are pleasantly surprised to find that they can dispose of an unwanted timeshare at the same time. The original intended use of the timeshare may no longer exist. The owner may have moved, the time slot may be inconvenient, health concerns may no longer permit easy use, or as the family has grown up, it may simply be the wrong size or location. Sometimes a couple has purchased the timeshare, but one partner becomes ill or passes away and the timeshare becomes impractical.
Other timeshare owners find that the annual maintenance fees outweigh the value of the property in their situation. It can also be much easier to give a property to FREE AT LAST than to deal with the difficulties of selling property in a distant location and competing with timeshare developers offering attractive incentives.
In the end, our donors receive a valuable service, a tax deduction and they feel good knowing that they’ve helped pay for Treatment Programs that may one day help save the life of a loved one, or even themselves.
What If I Decide To Sell My Timeshare On My Own?
This is certainly an option any timeshare owner has. We find that many owners do initially try to sell their timeshares, but ultimately decide to simply give it to FREE AT LAST.
A typical timeshare owner will spend $800-$3,000 trying to find a buyer that will pay $1,000 to $4,000. It can take several years, a commitment of personal time and a high degree of frustration trying to find a buyer. Since there are also maintenance fees to be paid while you are trying to sell, time is of the essence. If you hold on to the timeshare for three extra years, the maintenance fees and costs of finding a buyer may exceed the sale price.
Selling timeshares is a specialty where most agents require substantial upfront listing fees. Most owners have few easy alternatives. This is part of what makes a timeshare gift to benefit FREE AT LAST so attractive.
Tax Issues
(Note: This section is intended to offer suggestions and provide general guidance, not to provide legal advice. Each person's circumstances will differ, so it is important that you consult your own tax or financial advisor. Assuming the timeshare has been owned for personal use and was purchased by or given to the current owner.)
What Do Timeshare Gifts Typically Sell For?
They can range from $50 to over $5,000. A very small percentage sells over $5,000.
Can I Take A Charitable Deduction For A Timeshare Gift?
Yes, you can take a tax deduction for the fair market value of the timeshare gift if you itemize it on your federal income tax return. The IRS describes Fair Market Value “as the price that a knowledgeable buyer would pay a willing, knowledgeable seller when neither has to buy or sell."
How Do I Determine The Value Of My Gift?
The donor is responsible for valuation issues. It is best to be realistic in claiming a charitable income tax deduction based on actual values. If you do so, the IRS is unlikely to question the value you put on the gift.
If the claimed value is $5,000 or less, you simply provide the estimated value and give a short explanation of how you determined it. The IRS does not tell you how to come up with the value, nor do they require a formal appraisal for gifts less than $5,000. Since the IRS is most concerned that you not overstate the value, one conservative approach is to use the actual sale price that property sold for.
To obtain the sale price for your timeshare, you can call Donate Timeshare Online at (510) 744-1875.
Alternately, you can use any method you believe will determine the fair market value of the timeshare at the time of the gift.
Do I Need To Obtain An Appraisal?
For charitable gift value of $5,000 or less, no appraisal is required by the IRS. All you need to provide is:
- FREE AT LAST is the charity you list for tax purposes
- A brief description of the property
- The date of the gift
- The date and method acquired (i.e. purchased June 2006)
- Your cost basis (usually what you originally paid for it)
- Value you are claiming for the charitable tax deduction
- A short (5-10 words) explanation of how you determined the value (Many will simply say something like “Same price that charity sold it for")
Do I Need An Appraisal For Gifts Worth Over $5,000?
Yes, the IRS requires an independent appraisal to confirm a value over $5,000. If you make a timeshare gift worth more than $5,000, you can either obtain an appraisal to justify a higher charitable income tax deduction or simply take a charitable income tax deduction of $5,000 or less without an appraisal. Some timeshares will sell for more than $5,000, but the percentage is small.
The Developer Sells Timeshares For $20,000. Can I Take A $20,000 Deduction?
Determining the actual value is between you and the IRS when you file your tax return.
If the developer is selling timeshare units in the same location that are identical to yours for $20,000, you could certainly claim a tax deduction for $20,000 if you can get an appraiser to confirm this value. However, experience suggests that it may be difficult to find such an appraiser willing to agree that $20,000 is the true value on the resale market.
It is common that a developer will sell a timeshare week for $20,000 while the very same timeshare unit for the following week is being offered for $4,500 on the resale market by a different timeshare owner or through a listing agent.
It's like buying a new car: As soon as you drive it off the lot, the resale value drops substantially.
If you get into a dispute with the IRS, they will undoubtedly argue that it is worth $4,500 and you will argue that it is worth $20,000. A good argument can be made for both sides. Ultimately, this is a decision that a court would have to determine. Only you and your tax advisor can decide how you should to handle this. You may also want to look at the instructions for IRS Form 8283. If the IRS examines the issue, they will easily be able to determine what the timeshare sold for, both originally and when resold.
Do I have to pay my maintenance fees for next year?
All donors are responsible for keeping their account current throughout the donation process. If the process is completed and the usage is still available you will be reimbursed all or part of the fees for that use year.
What Timeshare can be donated?
Just about any timeshare anywhere can be donated. There are a few timeshares that we don't take.
What if I want to donate to a charity not listed on the donation form?
If you would like to choose a different charity not listed on the submission form you will need to provide us with a phone number of an officer of that charity.
What are my duties during the donation process?
You will need to fill out the on-line submission form, sign a consent form, sign the new deed once we send it to you and pay all fees associated with this ownership until it is transferred out of your name.
How do I get my charitable tax deduction?
As soon as we transfer the ownership of your timeshare we will send you a receipt for your donation.
How much will my Donation Receipt be for?
It is up to you to determine the fair market value of your donation. We will send you a receipt which describes the donated property and you write in the value. You are always welcome to visit the closings website and click on closing status link and see how much your property sold for.
What are the costs for me to donate my timeshare?
Typically, you pay nothing. If we have to request a deed from the county (due to a lost deed) there is a $25 charge. Also, if we have to draft an Affidavit of Death (if the deeded owner has passed away) there is a $95 charge plus recording fees.
How long will this process take?
The closing process takes approximately 120 days not including the time it takes the county to record the new deed.
How does the process work?
In order to process the Donation and Transfer of your timeshare ownership, the account must adhere to the following criteria:
- Loan balance must be Paid in Full.
- Maintenance fees must be current until the end of the transfer.
Process and Procedure:
- Donation consent forms need to be sent back to Donate Timeshare Online along with any ownership documents and Deed.
- Once the consent forms are received Donate Timeshare Online will conduct a market analysis and start the transfer process.
- Timeshare Closing Online will submit an estoppel request to verify the details on your account with the resort. This process will approximately take 2-3 weeks.
- Once the account is verified Timeshare Closing Online will begin to prepare the new Deed and/or Transfer Documents. Once the documents have been prepared, they will be forwarded to the Donor with instructions on how to complete. This process will approximately take 10-12 business days.
- Once the Deed or Transfer Documents has been executed, it must be sent back to Timeshare Closing Online to be forwarded to the appropriate Resort or County.
If the Deed has been sent to the County for Recording, the Recording process approximately takes 2-3 weeks.
- Once we receive the Newly Recorded Deed back from the County, a copy will be sent to the resort to transfer ownership.
- Once the Deed/Transfer Documents have been sent to the Resort, the processing time may vary depending on the resort.
- Once Timeshare Closing Online receives confirmation that the transfer is complete, they will notify you and will submit your file to the Accounting Department to close out your file.
How can I contact someone to discuss my donation?
Please use our contact page.
What is a Right of First Refusal (ROFR)
This right is reserved by some resorts to take the position of a buyer in a contract to purchase one of their timeshares. If the resort elects to purchase the property they must buy it at the same price and conditions as stated in the contract.
What is Title Insurance?
A contract by which a private title insurance company agrees to pay the insured a specified amount for any loss caused by defects of title to real estate, wherein the insured has an interest as purchaser, mortgagee, or otherwise.
Once I donate a Timeshare, who then owns it?
Upon receipt of your donated timeshare, the charitable organization becomes the owner of the item. We provide the turn-key liquidation service for the non-profit (e.g. inventory, auction, shipping, conversion into cash), but ownership remains with the charity.
What tax benefits might I realize by donating items that are no longer useful to me?
In USA, most often the "fair market value" of the item can be deducted. Depending upon market conditions, the fair market value is often quite higher than the actual selling price. In many cases, when you factor in the value of your time, the tax donation benefit can often outweigh trying to sell the item yourself.
With the exception of marketable securities, donor's who wish to claim a tax deduction for donated items of non-cash gifts exceeding $5000 must substantiate the valuation with an expert appraisal. Deductions up to $5,000 do not require an appraisal.
However, tax guidelines are highly specific and change regularly therefore we strongly recommend that you consult your tax advisor for individual and specific detail.
Who provides me with my gift receipt for tax purposes?
The non-profit charitable organization will provide you with your "gift-in-kind" tax receipt. However, we will deliver the gift receipt to you upon confirmation of your donated item.
Timeshare Donation Tax Advantages Deductible Items (e.g., Taxes and Interest)
Unless you rent your timeshare to others, you might have no deductible amounts related to the timeshare. However, if the property taxes applicable to your unit are billed separately to you (such as in California), those are deductible. They should also be deductible if your resort shows them as a separate item on your maintenance fee billing. However, if you have to seek out the tax amount applicable to your unit by examining the financial statements, the taxes are not deductible.
A few owners can deduct the interest expense on a timeshare loan. The interest is deductible only if the loan is secured by the timeshare as a mortgage and you deduct no other mortgage interest except on your primary home.
*Note that most timeshare loans don't qualify because they are written as consumer loans rather than as mortgages. Similarly, interest expense on credit card debt used to finance the purchase would not be deductible. If your timeshare was financed with a home equity loan on your personal residence or by refinancing your mortgage on that residence, the interest is generally deductible, subject to certain limitations.
Donate a Timeshare to Charity
Should I donate my timeshare to charity? The answer is "Yes!" 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. If the FMV exceeds $5,000, you’ll need a written appraisal that meets IRS guidelines. If the sale of the property would have resulted in a short-term gain, the FMV must be reduced by this amount.
Right to Use (RTU) timeshares and non-deeded points timeshares are tangible personal property to which additional rules apply. If the charity’s use of the property is unrelated to its primary function (for example, if sold at an auction), the FMV must be reduced by the amount of any gain that would have resulted had the property been sold by the taxpayer.
Is it worth it?
If you are in this position then the answer is most assuredly, YES! Especially when the charitable organization can make meaningful use of your property the gains can increase for you. It is of course best to consult you tax advisor.
Another frequent question is, "Can I get a tax deduction if I donate the use of my week to a charity?" The answer is "No". IRS regulations won't allow a charitable deduction for the gift of a right to use property. Donate the use of a week because you are charitable, but you can't deduct any value associated with the use of the week.
How do you calculate depreciation expense?
If your timeshare is newly purchased, even from a secondary market, you can base your claimed depreciation expense on your purchase cost. However, if you have previously used your timeshare for personal purposes (including an exchange or use by friends or family), you must base your depreciation on current value - which means resale value - as of the date you convert to rental use. If deducting expenses from rental income results in net rental income for the year, it's taxable. If you have a net rental loss, you cannot deduct the loss.
How come?
First, it's certainly legitimate to deduct rental expenses to offset rental income. However, with timeshare rentals, there are some significant limitations if you incur a loss. Assuming that like most timeshare owners, you typically rent to tenants for one week or less at a time; your rentals don't qualify as a "rental" business. A special section of the Income Tax Regulations prohibits treating your loss as a rental loss if the average rental period for a particular tenant is seven days or less.
So what happens to the loss if it's not treated as a business rental loss?
It falls into the passive activity loss rules of §469 of the Internal Revenue Code. Those rules prohibit deducting such losses except against other passive activity income. Such income is narrowly defined and doesn't include, for example, dividends, interest or other investment income. You're pretty much stuck with carrying over such losses to use against positive taxable income from your rental activities in future years. You can also deduct any carryover losses related to a rental property in the year you sell that timeshare. There are a number of complex rules that could change the result here - including the vacation home rules, rules relating to renting to tenants for longer than one week at a time, etc.
Vacation Home Rules
Wouldn't the vacation home tax rules apply to a rental gain, allowing you to avoid reporting the income, because you rented the property for fewer than 15 days? No, the vacation home tax rules will usually not apply. Thus, you must report the rental profit - whether you own one week or a number of weeks.
The vacation home rules apply only if you use the "vacation home" for at least 15 days each year for personal purposes. A timeshare can qualify as a vacation home. However, unless you own at least four weeks at a single resort, using at least three of the weeks for personal purposes, you can't take the benefit of excluding the income from renting the fourth week, because there is no practical way that you could use your timeshare for at least 15 days and rent it out to others. Thus, in almost every situation, you must report the rental profit. You can also offset losses from some rentals against profits on others to minimize your net taxable income, but deducting a net loss is still subject to the rules above.