Advice about possibly selling our membership

[MammaMoe48]

OK, so when we bought in 2013, we were in a position where we could afford the payments and didn't think we'd have issues down the road. Without getting into too much detail but for various health and home related reasons our situation has changed and we just can't afford the payments anymore so we are thinking of selling. I have absolutely no idea how to begin. Should I call Disney and see if they have advice? I imagine that they would try to discourage me from selling so I'm hesitant to. Can anyone recommend a trustworthy timeshare broker who could help me out? We've had a few great trips but we just can't afford to go on big vacations every year or two and we also wind up feeling like we are losing value if we spend money on a non-Disney vacation. I have thought about renting our points each year but I worry that we'd be on the hook if the renter didn't pay their room charges. Also, what would the tax implications be? I'm sad to even think about selling but we just can't do it. Also, out of curiosity, what are points going for these days?

 

[KAT4DISNEY]

DVC would direct you to an affiliated broker - and I personally wouldn't use them to sell.

Here are a couple of reputable brokers that you could chat with about the process and potential pricing. Be aware that if the selling price less the commission is less than what you owe, as it sounds like you have it financed, then you would have to make up the difference before closing.

http://www.dvc-resales.com/dvclisting.cfm

https://www.dvcresalemarket.com/?gclid=CK3u9P-Z3ckCFYs2gQodC9MEDQ

https://www.dvcbyresale.com/page.php/Sell Your Dvc

 

[cw62803]

I've used two brokers. One was one of the two brokers Disney recommends, and my experience there was barely acceptable. My other experience was with the Timeshare Store, and my experience there was fantastic. The person who handled my account, Jamie Carr, was attentive and communicative. She guided me through the entire process, explaining what I needed to do and what I could expect next. I would trust Jamie and the Timeshare Store with my business again in a heartbeat.

 

[LisaS]

I've used two of the brokers that KAT4DISNEY listed. I purchased a contract through The Timeshare Store: http://www.dvc-resales.com and I sold a contract through DVC Resale Market: https://www.dvcresalemarket.com

The Timeshare Store was good but DVC Resale Market was better in my case. DVC Resale Market charges a lower commission than TTS, so that's why I decided to try them when I sold -- more money in my pocket. There are other reputable DVC brokers who charge even less than DVC Resale Market but I don't know off the top of my head who they are.

I was impressed by the level of communication from DVC Resale Market. It was much better than what I experienced with The Timeshare Store. Given I was not familiar with the process of selling a contract, I appreciated how clearly everything was spelled out in the documents DVC Resale Market sent me and how much time they spent on the phone with me when I initially contacted them.

I'm sorry you have to sell but fortunately there are reputable brokers out there to help you through the process.

 

[Maistre Gracey]

I sold 21 contracts quickly and flawlessly with The Timeshare Store.
I highly recommend them.

http://www.timesharesale.com/


MG

 

[jekjones1558]

We recently sold 3 contracts and are in the middle of a 4th sale with dvcresalemarket.com. We listed our first sale with both Timeshare Store and dvcresalemarket.com but got better service and more offers from dvcresalemarket.com so we sold the others with them. Communication from them and the title company they use is fantastic. And as LisaS said, the commission with dvcresalemarket.com is less than Timeshare Store.
Income from rental of points is taxable.
Regarding "what are points going for these days?": If you mean current prices to sell your contract, see this thread: https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3568151/

 

[Dean]

OK, so when we bought in 2013, we were in a position where we could afford the payments and didn't think we'd have issues down the road. Without getting into too much detail but for various health and home related reasons our situation has changed and we just can't afford the payments anymore so we are thinking of selling. I have absolutely no idea how to begin. Should I call Disney and see if they have advice? I imagine that they would try to discourage me from selling so I'm hesitant to. Can anyone recommend a trustworthy timeshare broker who could help me out? We've had a few great trips but we just can't afford to go on big vacations every year or two and we also wind up feeling like we are losing value if we spend money on a non-Disney vacation. I have thought about renting our points each year but I worry that we'd be on the hook if the renter didn't pay their room charges. Also, what would the tax implications be? I'm sad to even think about selling but we just can't do it. Also, out of curiosity, what are points going for these days?

tax implications are that you'll owe taxes on any grains but can't deduct any losses. There will be a 10% fee with most of the brokers.

 

[MammaMoe48]

tax implications are that you'll owe taxes on any grains but can't deduct any losses. There will be a 10% fee with most of the brokers.

So say I had $10,000 left on my "mortgage" and sold my membership for $12,000, I'd pay taxes on the $2,000 profit I made?

If you mean current prices to sell your contract, see this thread: https://www.disboards.com/threads/r...ost-for-instructions-formatting-tool.3568151/

I actually meant what points cost now when buying direct from Disney. When we bought it was $120 a point.

 

[jekjones1558]

You will owe taxes on any profit you make on the sale, which you probably won't if you paid $120/point. So you compare total costs you paid to buy with total proceeds you received when you sell.

 

[Dean]

So say I had $10,000 left on my "mortgage" and sold my membership for $12,000, I'd pay taxes on the $2,000 profit I made?


I actually meant what points cost now when buying direct from Disney. When we bought it was $120 a point.

You'll need what you actually paid, not the retail price at the time but if you bought retail, that's not an unreasonable amount to use. Any profit would be between what you actually paid and what you actually sell for minus any sales expenses. This would be price per point, title fees, any closing but not fees reimbursement as your basis. If you end up with a positive number you'll owe taxes on that, if it's negative, you can't deduct it. If your mortgage is more than you sell for, you'll have to come up with the difference at closing and the 10% sales commission.

 

[MammaMoe48]

OK, so it's unlikely that I could sell my membership without taking a loss and since the whole point of selling is that we can't afford the $300ish a month we certainly wouldn't have a couple thousand to pay out if we sell. So my next question is: if we rent the points would that money be considered income and would we have to claim it on our taxes?

 

[supersnoop]

So my next question is: if we rent the points would that money be considered income and would we have to claim it on our taxes?

Yes, rental income is income.

 

[jerseyduke]

If you sell it for more than you paid for it, there is a profit, and that profit is subject to taxes.

If your mortgage is 10k on it, and you sell it for 12, your profit is not 2K, as what amount is mortgaged is irrelevant - what matters is how much you paid in total for it. If you paid 10K and sold it for 12, you would have a 2K Profit to pay taxes on. If you bought it for 15, have 10K left on the mortgage, and sell it for 12, you have a 3K loss, so you would not owe any taxes.

You will only have to pay out of pocket if your sale price, minus the commission/fees is not enough to pay off the mortgage. (IE you are upside down, or underwater on it)

If you rent it out, that is income, and would be taxable.

 

[Dean]

OK, so it's unlikely that I could sell my membership without taking a loss and since the whole point of selling is that we can't afford the $300ish a month we certainly wouldn't have a couple thousand to pay out if we sell. So my next question is: if we rent the points would that money be considered income and would we have to claim it on our taxes?

It is, minus expenses. Say you sold 200 points at $15 pp and had maint fees plus any misc expenses of $7 pp, you'd have a profit of $1600 taxed at your marginal rate which I doubt would be a lot right now given the other info you've shared. You'll just have to see what the balance is.

 

[chalee94]

So my next question is: if we rent the points would that money be considered income and would we have to claim it on our taxes?

While the income is taxable, you can reduce the taxable income by the annual dues paid on the points rented.

 

[VLee]

When selling a membership contract, are you also able to deduct the maintenance fees or a portion of them that you paid each year while owning the contract. For example, if you paid $72 a pt, held the contract for 7 years, paying approximately $4 each year per pt for maintenance (not including yearly dues) and then sold at 110 per pt. You paid (let just say) a total of $28 for maintenance fees per pt over a period of 7 years. Are you able to determine your profit on $100 per pt and not $72. I thought I had read somewhere where the maintenance portion of the yearly dues could be used this way, but I may be incorrect......so I am asking.

 

[jekjones1558]

When selling a membership contract, are you also able to deduct the maintenance fees or a portion of them that you paid each year while owning the contract. For example, if you paid $72 a pt, held the contract for 7 years, paying approximately $4 each year per pt for maintenance (not including yearly dues) and then sold at 110 per pt. You paid (let just say) a total of $28 for maintenance fees per pt over a period of 7 years. Are you able to determine your profit on $100 per pt and not $72. I thought I had read somewhere where the maintenance portion of the yearly dues could be used this way, but I may be incorrect......so I am asking.

Our tax preparer deducted the capital reserves portion of our dues.

 

[VLee]

Thanks, Jean for the reply. May I ask did you keep a yearly record of the capital reserves portion of your dues or was Accounting at DVC able to provide this information to you.

 

[jekjones1558]

Thanks, Jean for the reply. May I ask did you keep a yearly record of the capital reserves portion of your dues or was Accounting at DVC able to provide this information to you.

LisaS was kind enough to send me a link to some dues info but I am visiting at a hospital now. I can send you the info when I get home.

 

[LisaS]

Thanks, Jean for the reply. May I ask did you keep a yearly record of the capital reserves portion of your dues or was Accounting at DVC able to provide this information to you.

I found a couple of websites that provide a detailed breakdown of the DVC dues at each resort going back several years. Some of the sites cannot be posted here on the DIS but I just discovered that DVC News also has this information and links to it can be posted here. Start with this link to the 2016 dues breakdown: http://www.dvcnews.com/index.php/dvc-program/financial/2016-resort-budgets

That web page has a chart of the dues breakdown for 2016. Over on the left there are links to earlier years going back to 2009, though I don't see 2011 in the list of links. Scroll down or search within each page for "capital reserves" to find the amount per point for that budget line item for that year. I didn't check each chart to see if it includes all resorts and all budget line items.