Paying taxes on rented points

Discussion in 'Purchasing DVC' started by Mickey527, Apr 18, 2004.

  1. Mickey527

    Mickey527 DIS Veteran

    Joined:
    Feb 1, 2000
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    4,956
    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
     
  2. BostonDisneyKid

    BostonDisneyKid "All our dreams can come true, if we have the cour

    Joined:
    Apr 11, 2004
    Messages:
    796
    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...
     
  3. CarolA

    CarolA <a href="http://www.wdwinfo.com/dis-sponsor/index.

    Joined:
    Aug 21, 1999
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    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.
     

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