For example, most timeshares qualify for the mortgage interest deduction, assuming you paid for the timeshare with a loan, and you can deduct property taxes. Also, you may need records of when and how you acquired the timeshare if you donate it.
Identification
Provided you donate a timeshare, the by oneself impost relieve is a deduction for the cost of the Belongings. You can matchless deduct the bazaar price of the timeshare, not necessarily what you paid for it. Unless the charity sells the timeshare before you conclude your taxes, you must calculate the equitable bazaar appraisal of a timeshare on your own, which may need independent trial, such as finding agnate properties.
Considerations
Finding a charity that accepts the donation is another difficult than just calling up any charity in you area. The charity usually needs a commission or outside help to determine if it can handle the cost of a timeshare until it sells. The American Kid Fund, For instance, hires another company to handle timeshares and regularly rejects such donations, especially ones it cannot sell at a profit.
Tax Implications
You must itemize your return to claim a timeshare donation, and you cannot itemize a charitable deduction and take the standard deduction. Unless your other itemized deductions exceed your standard deduction, there is no reason to itemize your return. If you itemize to claim the charitable deduction, you might need an appraisal, which could cost $100 to $200 in 2011, to receive the property's fair market value unless the charity informs you of the selling price. You can claim appraisal fees for a donation, but only appraisal fees that exceed 2 percent of your adjusted gross income.
Tip
You must receive a disclosure notice from the charity stating that you made a donation to a tax-exempt 501(c)(3) corporation. Also, compare the tax advantage of donating a timeshare versus any deductions you can already take on the property.Donating a timeshare might be one of the blessing ways to receive rid of one you can't afford or no longer need, plus you entertain to cooperate away a explanation of your choosing. But, you must decide the reward of the Belongings and substantiate the detached marketplace equivalent of a timeshare with evidence. In some cases, still a charity won't appetite your timeshare.
