Program Qualification & Evaluation Criteria
Asset Reclassification Group (ARG) applies clear evaluation parameters to ensure every accepted case achieves irrevocable contractual release. While eliminating perpetual resort liabilities is the primary objective for all clients, those with active income can also unlock significant tax asset benefits. Review the criteria below to see if your contract qualifies for formal review.
1. Qualifying Asset Parameters
To qualify for complete contractual cancellation and liability termination, the contract or property must meet the following baseline conditions:
- Property Structure: Deeded real estate interests, perpetual points-based club memberships, or fractional resort contracts carrying lifetime fee obligations.
- Encumbrance Status: Free and clear of primary purchase mortgage financing (or eligible for structured payoff during the cancellation process).
- Liability Profile: Subject to ongoing annual maintenance dues, management fees, or recurring special assessment liabilities.
2. Contract Severance & Optional Tax Savings
Severing ties and stopping annual fee exposure is the core deliverable for every client. Tax reclassification is evaluated as an added strategy:
- Primary Objective (Contract Severance): Complete and permanent legal cancellation of all contract obligations, maintenance fees, and future assessment liabilities. This applies to all qualified contracts regardless of tax status or employment profile.
- Secondary Benefit (Tax Asset Reclassification): Clients with active taxable income (W-2, 1099, corporate earnings, or capital gains) can additionally explore converting the contract loss into an IRS-compliant tax deduction to offset ongoing income exposure.
3. Disqualifying Factors
To maintain program integrity and rapid execution timelines, ARG cannot accept cases under the following conditions:
- Active Defaulted Loans: Contracts with active primary mortgage balances where clear title transfer cannot be achieved.
- Clouded Title or Litigation: Properties undergoing tax lien foreclosures or unresolved adverse legal claims.
- Unverified Documentation: Files lacking original purchase agreements, account numbers, or recent billing statements.
4. Initiate Your Case Review
If your contract aligns with these parameters, your file is eligible for a formal case audit to establish your cancellation pathway and evaluate secondary tax opportunities.