The holiday season is rapidly approaching and we all know what that means...
the season of giving is upon us! Christmas is a time of goodwill, peace, and charity, but it's not necessarily always better to give than receive.
For instance, donating your timeshare to charity might seem like a convenient way to rid yourself of such a financial burden, but the only thing you'll receive is a massive headache! Timeshare donations paint a picture of philanthropy coupled with massive tax deductions, along with the obvious benefit of ridding yourself of your timeshare obligations.
This pie in the sky offer seems too good to be true! Unfortunately, it is.
Timeshare donation is one of the most common and expensive scams in the industry today.
Not only that, but it could trigger an audit of your tax returns by the IRS, upon which, it will be revealed that the donation was really a scam - leaving you owing Uncle Sam a hefty sum.
To put it simply, donation just isn't a viable option as a timeshare exit solution.
Here's how it works: A group of sales professionals sequester a group of disgruntled timeshare owners into to a physical location or a webinar with someone posing as a timeshare counselor.
Once the presentation begins, they'll feed you quasi-accurate information about the folly of listing your timeshare on the resale market (Note: This is the only part of the scam that is remotely valid - timeshare are nearly impossible to sell).
When they feel like they've convinced you to enlist their services, they will request a large up-front fee to channel the timeshare to various charities with which they're affiliated.
Next, they'll appraise your timeshare and claim that it's worth roughly 75-80% of its initial value.
After the bogus appraisal has been completed, they'll ensure you that you can write the appraisal figure off on your taxes.
For the salespeople, the closer is that the amount that you will receive in your tax deduction will far exceed the amount you paid for their services - a patently false claim.
Keep in mind, if you go through with this process, the IRS will audit you and hold you responsible for the refund that you receive.
At this point, it will be too late to plead ignorance.
Given the shabby resale market, the IRS is fully aware that your timeshare is not worth what these companies appraise them at.
Further, they know that you are also well aware of this fact, and they will act accordingly.
Timeshare donation is a dangerous, expensive, and inefficient method of timeshare disposal.
If you don't believe me, discuss the matter further with your attorney or accountant; you'll hear the exact same thing from them.
At best, it's a poor financial decision, at worst, it's a scam that could get you and your family in hot water with the IRS.
If you're honestly considering timeshare donation, please, at the very least, seek an accurate appraisal of your timeshare from an objective source.
I strongly urge you to be thorough in your search for an efficient and expedient timeshare exit solution, but I'd really hate to see you dig deeper into financial difficulty by dealing with timeshare donation agencies.
I know that many of your have dealt with less that reputable individuals and organizations in the past, so please don't make the same mistake twice!