Timeshare Council » donate

10 Things You Should Know About Timeshares

Time Share Advisor — Thu, 22 Sep 2011 03:28:34 +0000

Understand the contract.
It is easy to sign a timeshare contract, but it may be hard to get out of one. Make sure you understand all of the terms. When do you get to use the property? Do you get the same property every time? What is your yearly total cost of ownership? Are there set dues and fees? How much can the dues and/or fees increase each year? Who manages the property? Who do you contact with contract questions?
Walk away from high pressure sales.
There are good timeshare deals, and there are timeshares deals that require high pressure sales. Walk away from a sales pitch if you feel pressured to make a decision on the spot. The last thing you want is buyer’s remorse after signing a binding contract. You should also research the company you are doing business with, or at the very least check their rating on the Better Business Bureau. Walk out the door if the word free comes out of a sales persons mouth.
Location, location, location
If you want to trade, you need a desirable location. You will probably not get the best trades with Vegas or Aspen in the summer.
Timeshares are not investments
The stock market is for investments, timeshares are for vacations. The value in a timeshare is the quality of your vacation. You should feel good about breaking even, should you decide to sell your timeshare. You can rent some timeshares, but again, feel lucky if you break even.
Maintenance fees
All timeshares have maintenance fees. You will pay an annual fee, even if you do not use the timeshare. Read the contract, and make sure you understand the terms of the maintenance fees.
Exchanges
You may never tire of your timeshare if it is in a desirable location and time of year. You may have the option of exchanging your timeshare through a timeshare exchange broker should you want to explore other locations.
New or resale
You can save a considerable amount of money by purchasing a timeshare from a previous owner, maybe even 50% or more.
Fixed week vs. floating week
Fixed week means that you get the same week every year (IE: 4^th of July). Flex week means that you can claim a week within a range of weeks.
Taxes
Any profit from the sale of your timeshare is taxable. Selling at a loss is typically not deductible.
Donating a timeshare
You can donate your timeshare to a charity

Donating a timeshare

Time Share Advisor — Mon, 25 Oct 2010 19:51:26 +0000

Most timeshare owners are going to take a loss if they sell their timeshare. In addition to the loss the owner will need to navigate the process of a deed transfer. Owners in a higher tax bracket may benefit from donating their timeshare.

Have a specific charity that you would like to donate to? Most charities do not accept timeshares. Transferring ownership of a timeshare can be difficult for charities that infrequently receive timeshare donations, but don’t give up hope. There are numerous companies that can handle the process of donating your timeshare. We should also mention there are disreputable businesses who may also offer to assist with the donation process. Always check the BBB before doing business with any timeshare company.

Timeshare donation companies operate on a fairly simple formula. The company donates the timeshare to a charity in the owners name, buys the timeshare back from the charity, and then sells the timeshare. The timeshare donation company is a for-profit company, but this is a win-win situation for all involved. The owner can walk away from their timeshare with a tax deduction, the charity receives a donation, and the timeshare donation company makes a profit (most of the time).

The only entity with anything to lose is the timeshare donation company, they are taking all of the risk. As with any successful company, the timeshare donation company needs to mitigate their risk. Most timeshare donation companies mitigate their risk by only accepting deeded and right-to-use weeks with all fees paid up. The companies can be picky about what they accept.

Consult your accountant to understand the details of the tax deduction for the donation. Typically the process is fairly simple if the fair market value of the donation is less than $5,000. Donations over $5,000 will typically require a certified appraisal. Review the IRS website for more information on noncash contributions to charitable organizations. Keep in mind the charity will disclose the buyback price of the timeshare to the IRS and the buyback price will most likely determine the amount of the deduction.

Still have questions about donating your timeshare? Ask a question, no registration required and it takes less than a minute.

Timeshare maintenance fees

Time Share Advisor — Mon, 21 Dec 2009 01:44:00 +0000

Timeshare maintenance fees are used by the resort HOA or developer to pay for the required upkeep to maintain the property in a desirable condition. As with any property, such as your home, it costs money to keep the property maintained and safe. Maintenance items like carpet, paint, and roof repairs are typically funded by owner maintenance fees.

The annual maintenance fee is established by the timeshare management company, either the developer or the HOA. New properties still managed by the developer tend to have lower fees. Most developers want to keep the fees low in order to keep costs down for the initial buyers.

You should expect to pay at least $815/year in maintenance fees. You could pay more than the $815 average depending on the property, and depending on what is defined in your contract. Review your timeshare contract thoroughly to understand your financial obligations.

Be prepared to pay special assessment fees, in additional to your annual maintenance fees. Special assessment fees can be levied at any time due to unforeseen events. A common example of an unforeseen event is hurricane damage that exceeds the payout of the insurance company.

If you understand your costs, and budget properly, you should not have any problem paying the fees. Owners that cannot pay the fees should investigate the option of either donating the timeshare or the option of a quick claim deed to the property management. If a quick claim deed offer is not accepted, and donating does not pan out, then you can sell your property for one dollar and have the new owner assume the maintenance fees.