If you want to make wise investments, there’s no one better to ask than your accountant. Even though you might be looking for a fancy resort to spend your summer, timeshares are often seen as a seemingly low-cost, but risky, opportunity that only those who have enough money to waste will consider.
While a timeshare can be a good idea if the terms and expenses fit your lifestyle, it’s still a good idea to ask your accountant about the following:
What are the main financial risks involved? In most cases, they will tell you to look at the various additional fees, such as broker fees, recurring payments required for maintenance, financing costs and other related charges.
How will it affect my taxes? Your CPA should be able to give you a rough estimate of how much you might be expected to pay and whether or not there are any complications involved.
What should I be aware of before buying the timeshare? In most cases, a CPA will draw your attention to the risks of falling victim to fraud and recommend that you check with the Better Business Bureau, as well as do some research on the seller and the resort, before considering signing the contract.
If you are looking to get out of your timeshare contract, tax refund season is a great time to do that. Call the professionals at https://timeshareterminationteam.com/.
So tax season has passed, and hopefully it was relatively painless. You might have even received a tax refund that you can use to get that fancy new TV you’ve had your eye on. However, even though your finances look okay for now, it’s essential to take a closer look at your expenses after tax season, especially if you happen to own a newly purchased timeshare.
You’ll hear it from a lot of experts: timeshares suck up money more than most traditional real estate properties. And, as an investment, they don’t make much sense except in terms of a consumerism mindset that can quickly lead you into debt. Looking for a timeshare exit strategy Colorado company can be helpful in these situations.
One of the main expenses you have to keep up with is your payment on the loan you may have used to buy your timeshare in the first place. Since most timeshares are worth around $20,000 or more, it stands to reason that most buyers will need to get a loan to consider purchasing them. If you have a mortgage that needs to be paid, pay close attention to the interest rate and repayment amounts, and make sure you learn as much as possible about any possible tax deductions.
Property taxes and maintenance/repair costs are also worth looking into. If you just bought your timeshare not long ago, you probably don’t know about all the annual fees required to keep it going and the considerable value of the property which can draw to itself the payment of high taxes. Get informed, and see if your budget allows you to hold on to your timeshare long term.
Timeshares may seem attractive because they provide the opportunity to enjoy the exclusive use of a luxury vacation property in another city or country that you could not have afforded otherwise. But the lack of information, as well as the cunning of sellers can put us into difficult situations, which is why we are going to do some myth busting related to timeshares.
Myth: Timeshares are an investment.
Actually, they are not, because you do not acquire a property in the true legal sense of the term — but a right to use it, which is different.
Myth: Timeshares have a good value.
Although they may look like a good value, there are so many annual fees and taxes to pay for owning a timeshare, that they could actually cover the costs of a traditional vacation, including airfare and commodities.
Myth: Timeshares can be sold easily.
The person who tries to sell you a timeshare will always try to convince you that you can easily give up the purchased package and resell it. Technically, this is true. But there is a “small” problem that the seller conveniently ignores: you will not be able to sell your timeshare easily, and definitely not at the same price as you bought it. A quick search for timeshares on eBay will show you thousands of timeshares up for sale for only $1!