View Full Version : Paying taxes on rented points

04-18-2004, 10:07 PM
I am tryng to decide whether to rent out some points and use the money to pay for a cruise, or just use my points for a cruise.
I want to go on the July 1-4 cruise and be back at the parks for July 4th. There are openings on the cruise right now, but I am having some cash problems due to my father's recent passing.
If the amount I wind up paying for the money I get for selling points works out to be about what I would use in points it just might be easier for me to use points.
Did anyone understand what I just wrote because even I am confused now. Peggie

04-19-2004, 08:36 AM
My two cents -

If you rented your points (at approx $10 per) it would be more beneficial to you as your point trade off value to the cruise will cost you much more.

Minimum point allotment for a 3 day cruise for the dates you listed is 96 points each for 2 people in a standard inside room for a total of 192 points at the going rate of $10 (plus or minus - don't want to start that debate all over again) would give you $1920.00. The rack rate for this room would be $409 - $899 per person ($818 - $1798) so even if you paid the highest possible rate you would still save money by renting your points. With some negotiation skills you may find you save a tremendous amount of money by renting your points and paying cash for the cruise. This extra money will come in handy at the parks and such...

04-19-2004, 08:45 AM
Technically you do owe income taxes on rental income.

That said, consult a tax advisor. Anything any of us tell you is not worth much when you meet your local IRS agent.