Donate Worthless Mortgages/Timeshares
Published: Fri, 12/21/12
Dec. 21, 2012
Hi ,
I know we're all getting ready for the holidays...but in all the
hustle and bustle we cannot afford to forget year-end tax planning!
Following is a letter I received from Dr. Ken Rich of Community
Health Training, Inc. He offers a service I've never heard of
before -- a way for you to donate mortgages, timeshares and
promissory notes that you wish to be rid of, and take a tax
deduction.
I'm passing along this info as a favor to his charity and
hopefully something that will benefit you.
Usually if the donor could sell the note, etc. for cash, they
would. CHT doesn't have any magic method to get cash for a
worthless note or timeshare. So, in order to generate cash
in the process, they accept and keep these items for 36 months,
give the maximum legal donation credit, and charge a nominal
service fee for accepting the item. They say the advantages
to the donor are:
"* donors in a 25% tax bracket actually get a refund of more than
the costs of donating the item.
* the IRS treats a donation different than a write-off.
* IRS handling results usually create a positive cash tax refund.
* no future worries for future fees on timeshares.
* a 4 year versus a 30 year tax write off for mortgages means faster
and bigger tax refunds."
They say a donor actually comes out ahead by donating what would be
considered a worthless timeshare and a nonperforming mortgage to
CHT.
Read Dr. Rich's personal letter to me below, consult your
tax advisor and decide if this is for you. The CHT information
is at:
www.communityhealthtraining.org/mortgagedonations/
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Merry Christmas,
Bill
W. J. Mencarow
-----------------
President, The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceUniversity.com
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Mr. Mencarow,
Thank you for contacting us. I took some time and thoroughly
reviewed your web site www.PaperSourceOnline.com. I looked at your
blog, forums, online copy of a recent publication, and many
of the advertisements. I was impressed.
We are a charity that accepts worthless things. Since it's
impossible for us to sell those worthless things (timeshares and
promissory notes) we let them sit in our drawer gathering dust.
The way we cash convert is to charge a processing fee at the
time of transfer - NOT UPFRONT! In fact, we don't even do any
of the paperwork. The donor selects a title/escrow company to
handle everything for their protection and we are simply the
final recipient of the deed, note and service fee.
We have researched IRS, business, contract, bankruptcy and
collection laws and found that as a charity we have a unique
opportunity to use those laws for the benefit of our donors.
For timeshares it gets them out of ownership and all future
obligations. For notes it allows a vastly accelerated bad debt
write off and tax benefit from the IRS. Many of the details are
on our website for anyone to read.
Because of our uniqueness and the totally unrecognized nature
of our work I've found nothing on the Internet about this
subject.
Sincerely,
Dr. Ken Rich
www.communityhealthtraining.org/mortgagedonations/
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