Bottom Line Cost to You
First, we do NOT resell mortgages, real estate, or timeshares we receive. The IRS wants us to hold it for 36 months to protect your ability to take an income deduction. Taking title to them creates a financial burden on us, just like you. For that reason we ask for a cash donation when the process is completed based on the service we provide you.
MORTGAGE ONLY
For the $1,000 cash donation you receive:
a. All required paperwork
b. Escrow protection until the transfer is completed
c. Copies of certified documents releasing you from ownership
d. IRS form 8283 which gives you a $5,000 income deduction for the mortgage
e. The right to have an IRS Qualified Appraiser provide a much larger income deduction on larger mortgages
Real Estate or Timeshare ONLY
For the $600 cash donation you receive:
- All required paperwork
- Escrow protection until the transfer is completed
- Copies of certified documents releasing you from ownership
- The right to hire an independent IRS Qualified Appraiser to provide an income donation value on the real estate and timeshares
For the $900 cash donation you receive:
- All required paperwork
- Escrow protection until the transfer is completed
- Copies of certified documents releasing you from ownership
- The right to hire an independent IRS Qualified Appraiser provide a much larger income deduction on real estate and timeshares
- IRS form 8283 which gives you a $5,000 income deduction for the timeshare
The simple fact is that what it costs you minus what you can legally receive back as a tax benefit is the bottom line. Everybody personalizes their tax return so these examples are only guidelines. For computation herein the total donation credit is $5,000. It’s your choice how much of that you wish to use. If you get an IRS Qualified Appraisal of $20,000 multiply the $5,000 column x 4 and compute the results. Please check with your tax specialist for more precise figures.
First, you can choose to pay $600 for the service alone without any tax benefits or you can you can choose to pay $900 to receive the full paperwork and our IRS reporting of the non-appraised value of $5,000. Below is an illustration of how the $900 service works on your taxes. Please remember that it’s actually only costing you an additional $300 for the added IRS donation credit if you plan on using it.
| Income<= | Tax Rate | Normal Tax | Income after $5,000 Deduction | After Deduction Tax | Tax Savings | ||
|---|---|---|---|---|---|---|---|
| 9,525 | 10% | 953 | 4,525 | 452 | 500 | ||
| 38,700 | 12% | 4,644 | 33,700 | 4,044 | 600 | ||
| 82,500 | 22% | 18,150 | 77,500 | 17,050 | 1,100 | ||
| 157,500 | 24% | 37,800 | 152,800 | 36,600 | 1,200 |
Make sure you consider the future value of your release in saved property taxes, maintenance fees, liabilities, and headaches.
In addition, you can always get an IRS Qualified Appraisal (certified by the IRS) for more than the $5,000 maximum donation credit you can take without the appraisal. Such appraisals legally ignore the $1 stressed sale prices many people think they have to use. In fact, the IRS specifically does NOT consider them comparable sales (IRS Regulations). For the IRS Qualified Appraiser fee of $600 (general estimate) the donation credit is usually in the range of 60% to 75% of what the current face of a mortgage or purchase sale prices of timeshares and real estate are.
When comparing services, please make sure you know what other services actual cost to you is before making your decision. We’ve found most similar services charge from $3,500 to over $7,000 to set you free.