Any Canadian DVC Members here?

[DisneyFunFan]

Hello!

We posted this message on the DVC board but didn't get many answers. We're considering buying into DVC while the dollar is still relatively low. Just wondered if there were many other DVC members from Canada around and if there are special considerations we need to take into account.

Apparently there is a 10% tax we have to pay if we want to sell the real estate interest... I don't totally understand that. Anything else?

Are you glad you joined DVC?

 

[mbb]

I think I chimed in on your thread on the DVC board

Happy, glad...you name it - we love our DVC (Although we wish the exchange had been better when we bought! LOL!)

 

[lab_girl]

Nope

 

[blizzard]

We are DVC members at OKW (since 1997). We are not in Ontario, so had to complete all the paperwork while at WDW. (I think Ontario is the only province that DVC is licensed to sell in)

Not sure what the 10% tax you are talking about is, so you may be better informed than I am.

We really enjoy our DVC vacations and are glad we joined. The dollar may go up and down, but we have our vacations prepaid (except the yearly maintenance fees). It is so nice to go to Disney and only have to pay for whatever you have charged to your room.

One option you have if the dollar crashes is to rent your points to someone in the US and get US dollars in return. That should cover your maintenance fees for the year plus give you a tidy sum as a bonus.

 

[Louise-Montreal]

We joined DVC in 2000 and have never regretted the decision, in fact, we are looking for more points!! Like the previous poster, we had to buy while in Florida and were a little hesitant feeling like we were swept up in the moment- however as I said we have never regretted it. That said, we do love WDW, and had been down often. We figured it made economic sense to make the purchase instead of always paying to stay on site. We only have 150 points- but we are cheap and have really stretched them out. We have been to Vero Beach, Hilton Head, OKW, WVL and of course our home resort of BWV.Now that they have the added incentive for annual passes- we will be making that purchase soon.

You have to crunch the numbers to see if it works for you- as for most people on these boards it does work and people are very happy with their investment.

Good luck with you decision!

Louise

 

[murcor]

Apparently there is a 10% tax we have to pay if we want to sell the real estate interest... I don't totally understand that. Anything else?

Not sure about that, but I am eager to find out if anyone knows

Are you glad you joined DVC?

YES

Before we bought in, we had done alot of research on dvc...alot through these boards. We basically knew that we wanted this and couldnt wait to get to disney to go on a tour and an information session.

We have only been home once, so we are relativly new members. So far, we are very happy with our purchase and have many wonderful vacations planned for the future. (we are even thinking about adding on next Jan when we are at WDW)

 

[CharlesTD]

We are We are not one single problem with the purchase we went directly through Disney for our contracts and have not regretted it at one moment we even bought when it was at 64cents on the dollar.

 

[Belle2002]

My parents bought a DVC membership in 2000 at Vero Beach. We have only used our points on one trip so far, but we were able to spend a week at the Beach Club Villas, a 4 day Disney Cruise and 4 days at Vero beach. The membership paid for itself in that trip alone. We also spent a couple of nights at the Disneyland Hotel last fall on points. They bought the 150 points a year and just added 50 more points in the fall, but they need to sign their papers in Florida for the add on. The original purchase was done in Florida. Anyway, we are about to take our second DVC vacation which will be the 14 day Panama cruise, plus we will still have points left to stay at a disney resort. So, even with the expense of the add on and having to pay for a third person on the cruise, this will still be like a free vacation!!

 

[MikeyNS]

No regrets. We're impluse buyers and this one turned out to be the best impulse ever. We kinda worry about not having enough points, but there's no need to addon yet until we absolutely need too!.. If you like to visit WDW and go once a year it will pay for itself over and over!

 

[Fellowship9798]

Hello!

We posted this message on the DVC board but didn't get many answers. We're considering buying into DVC while the dollar is still relatively low. Just wondered if there were many other DVC members from Canada around and if there are special considerations we need to take into account.

Apparently there is a 10% tax we have to pay if we want to sell the real estate interest... I don't totally understand that. Anything else?

Are you glad you joined DVC?

Just dredging up an old thread here, but since this may be useful to other Canadians considering DVC or others searching the forums for info in the future, I'll post what I know about the 10% witholding tax. I've been looking into DVC recently and this is what I've learned from a resale broker.

If you buy DVC (or any other timeshare I assume) and resell it later at a profit, then a 10% tax is withheld by the US government on the entire sale price. You are allowed to subtract commisions, broker fees, etc. from your sale price, but say your buy in cost a total of $10,000.00 USD and you later sell it with a net sales price less fees, commisions, etc. of $10,000.01 USD, then 10% of the entire $10,000.01 (not just the profit) would be witheld as tax. If you net $9,999.99 USD or less then nothing is witheld.

I believe it could be possible to reclaim this witheld tax by filing a US tax return or some such paperwork, but you would then need to declare the profit as income somehow on your Canadian tax return. This last bit is my own opinion, not something I have verified. I'm definitely not a tax accountant so if this matters to you, please check it independantly!

I would think that the majority of timeshares don't hold their resale value at all so this tax isn't an issue, but DVC apparently so far has retained, of not increased in value over time, so it's something to consider. I'll bet few sign up intending to sell later on, but if you run the risk of losing 10% of the resale price down the road, it may be important to consider for some.

 

[surfer_ed]

We got bitten by the DVC bug and are going to get the paperwork Notorized tomorrow. 150 Points SSR.

Can't wait for our first trip home in MArch.

 

[misslissa]

I'm pretty sure that my purchase of DVC is pretty much inevitable I've looked into all fo the info and I don't think I've heard about the 10% tax that you have, I also live in Ontario. However, what you may be talking about is how you claim it on your income tax. It may be subject to something there, but I am not really aware of what happens to that stuff once I send it in!

I know for sure that if you rent your points, you have to claim it as income from a rental property outside of Canada. From there, I don't know what they do with that info. Maybe call H&R Block!

 

[CharlesTD]

I'm pretty sure that my purchase of DVC is pretty much inevitable I've looked into all fo the info and I don't think I've heard about the 10% tax that you have, I also live in Ontario. However, what you may be talking about is how you claim it on your income tax. It may be subject to something there, but I am not really aware of what happens to that stuff once I send it in!

I know for sure that if you rent your points, you have to claim it as income from a rental property outside of Canada. From there, I don't know what they do with that info. Maybe call H&R Block!

We have never claimed any of our rental income on our taxes.

 

[Romandel]

We have been DVC members since 1999--Boardwalk--I wanted OKW but it was sold out and the offer from Disney was better than any resale at the time.

We live in Toronto and I can not say that I have ever had any regrets about DVC. I wish I had more points (I have 230). I have even rented them out when we are not able to go down--I have had no trouble renting them and it pays for the maintenance fees and then some.

I hope you decide to buy--you can email me with any questions etc.

Jacqui

 

[pkitty]

We have been DVC members since 2003 and bought at SSR. Absolutely no regrets. I called H and R Block regarding renting out point as an income. They stated that you can claim you maintenance fee and any interest paid on your taxes but you mst claim the income so really it's a wash. We love DVC so much that whether or not we rent them out or use them ourselves we are purchasing more. We have 160 points currently and will likely be adding on more when we travel down there WDW in March.

 

[misslissa]

Yep, I called H&R Block about a year ago when we first found out about DVC and they said you have to claim the 'rent' as income for sure.

 

[DisneylandGuy22]

I recently bought DVC while i was in california in September, Im from alberta and had no problems so far. I have my reservations made for Disneyland for January (bday trip). Im planning my first trip home to SSR in Either April or May.

Im glad imade the purchase