Another question:

I have a timeshare that I have been trying to dump. I have thought about donating it the charity. What are the tax ramifications?

Zip Code: dr_ericmiller@yahoo.com

Like any non-cash contribution, you get to claim a tax deduction based on the fair market value of item donated. If the value is greater than $500, you'll need to complete and attach a Form 8283 to your federal tax return. If the value is greater than $5,000, you'll need to also attach a written appraisal to your tax return, and will also need the appraiser to sign the Form 8283.

The money you realize from donating your timeshare is its value multiplied by your marginal tax rate. Let's say the value of your timeshare is $2,000, and you're in the 33% tax bracket. Donating the timeshare will put $660 in your pocket.

I would assume the timeshare company would have information available to people looking to donate either their timeshare weeks or their whole investment. It might be worthwhile to contact them.

Zip Code: aschwartz@mdtaxes.com