Timeshare gives owners the right to use the property of luxury resorts and vacation homes for a determined time every year. Furthermore, many individuals found their timeshares a waste of money since maintenance and membership fees only increase over time. It is where a timeshare owner faces an exit of their ownership. They can sell a property, give it back to a resort, or donate timeshare, and each way provides its pros and cons. In this article, we’ll walk you through a quick guide on how to donate your timeshare.
How to donate timeshare?
The principle of donating a timeshare is easy to understand – you need to sign your current ownership away to a charity. Charity organizations are likely to accept your timeshare to sell it later and get a profit or sell an annual vacation in the resort at charity auctions. For instance, if you own a prime week for winter skiing or a beach vacation, a charity organization will be able to monetize donated ownership. Apart from that, you need to understand that many charities won’t receive a timeshare from you because they will be obligated to pay all the maintenance fees instead of you.
One more important thing – many timeshare owners, wonder whether they can claim a tax deduction after they donate timeshare to charity. Talk to your tax specialist first, but in theory, you can claim recoupment for the fair market value of your property. However, remember that it won’t be wise to expect to return the total price you initially paid for a timeshare since its value on a resale market is different from the original purchase price. In other words, the fair market value appears as a cost that a market can offer you for your timeshare property.
Depending on the resort and location, donating a timeshare can last between 90-120 days. In most cases, it is worth waiting that long since you will finally be free from any obligations and maintenance fees. In addition, you can donate a timeshare only in case the mortgage is fully paid.
Otherwise, if you still owe a large amount on a timeshare, donating is not a good way to go. Before donating your timeshare, be certain you collect all the info about a resort and your timeshare deed to make the entire process smoother. Check your local charitable institutions if you doubt who I can donate my timeshare to.
What are the other options if I can’t donate a timeshare?
If donating isn’t a good option, you still have some solutions. Verify whether your resort offers deed-back or buy-back programs so you can return a timeshare to a developer. Additionally, you can list your property on the online resale forums and platforms. You can work with an experienced timeshare resale company to increase your chances for a successful sale.