Another Newbie Question Thread.....

[wscato]

I've been reading and searching through a lot of post and have found different answers to the same question. Below is a list of questions I have and hope someone will be able to shed some light on them.


1. I thinking about buying into the DVC at SSR and was wondering if I did the Magical Beginnings and financed through Disney if the money that they gave you from buying back points could be used towards the downpayment or does it just reduce the initial purchase price and you still have to pay the 10% down?

2. If financing through Disney, can the interest be deducted from your taxes and do they provide a 1098 Interest form?

3. Can any portion of the membership fees/dues also be deducted from your taxes?

4. If financing through Disney, do they penalize for early payoffs?

 

[InstImpres]

I'll answer what I can..you use to be able to use MB for your 10% but I had heard that part changed.

The interest is tax deductable, just as on a home mortgage. We lso deduct the property tax portion of our due bills.

There is no prepayment penalty/

Good luck
Sandy

 

[WDWguruDH]

Not an expert, but will answer what we do from our research here and elsewhere:

1. MB gets counted towards the downpayment. We did this on one of our contracts and only had to come up with about $500 to get the down.

2. We do deduct the interest as it is a property loan.

3. We deduct the property tax portion of the dues.

4. No penalty for early payoff. We paid one off in a matter of months from the start.

As always, confirm by reading the contract and asking your DVC guide. I don't want to misdirect you if things have changed or are different for your circumstances (but I would think it is the same).