non cash donation help?

[luke]

Client donated a 1 week per year Timeshare to Make A Wish - his original cost was over $9,000 - of course he wants that much of a deduction, Problem is that no one wants to provide an "appraisal" on a timeshare (they dont consider it real estate?)
The timeshare company solution was to take less than $5000 deduction and no appraisal would be needed - not a good answer but maybe the only choice?
Any ideas - THANKS in advance.

[Larmil]

I'm Confused

Client donated a 1 week per year Timeshare to Make A Wish - his original cost was over $9,000 - of course he wants that much of a deduction, Problem is that no one wants to provide an "appraisal" on a timeshare (they dont consider it real estate?)
The timeshare company solution was to take less than $5000 deduction and no appraisal would be needed - not a good answer but maybe the only choice?
Any ideas - THANKS in advance.

Timeshare costs $9,000 per week?

[luke]

Client PAID $9,000 several years ago to purchase 1 week per year..... (he actually had a "deed" prepared by attorney)

[Larmil]

Client PAID $9,000 several years ago to purchase 1 week per year..... (he actually had a "deed" prepared by attorney)

One key is factor is the fair market value. What could he sell it for?

[NotEasy]

One key is factor is the fair market value. What could he sell it for?

It would be nice if you can somehow get a very accurate fair market value. But I think it is a requirement that you need an appraisal for a non-cash donation which is over $5,000.

[Burke]

If it was given to a charitable organization, it's a pretty sure bet they sold it rather than kept it for their own use. Would a timeshare in a resort area fit into their normal function of charitable purposes? So what they sold it for IS the FMV. And they would have documentation. If not, there is a secondary market for these, so you could probably find out from comparables that have sold recently in the same complex. Check websites for sale offers.

[Larmil]

It would be nice if you can somehow get a very accurate fair market value. But I think it is a requirement that you need an appraisal for a non-cash donation which is over $5,000.

I personally don't that the donation would be over $5,000 - hence no appraisal needed.

[S T]

Cost of Time Share

Hmmm, cost $9,000 to purchase 1 week of Timeshare. What is the term of the contract, i.e, 1 week of Time Share over the next 10 years, next 20 years, etc. or was it $9,000 for one week for one year?

Sandy

[luke]

no time limit

Timeshare is "owned" for as long as there is a building there (no length of time stated)

[S T]

Hmmm

If the timeshare cost is $9,000 wouldn't you have to arrive at a period of time that the $9,000 covered. Or did the t/p buy only 1 week in 2008 for $9,000???

If taxpayer purchased timeshare for $9,000 and he is able to access that timeshare 1 week out of every year over a period of years, wouldn't the value be $9,000/ # of years or period to arrive at what the $ amount that the t/p donated for one week?

If I understand your original post the t/p only donated 1 week. So let's presume that the term of the contract is an investment of $9,000 for 30 years of time share usage for 1 week, wouldn't that equate to $300 per week per year.

Sandy