are MF tax deductable?

[tekoa]

Are the DVC mf tax deductable since part of it is real estate tax?

 

[erionm]

Depending on your tax situation, you might be able to deduct the property tax portion of your annual dues.

You should contact a qualified tax professional to get advice.

 

[tekoa]

Thank you. I am not a DVC member yet. But, I plan to be in the very near future.

 

[drusba]

Just to make it clear: The only portion you may be able to deduct is property taxes and that is usually only less than 20% of the total annual dues.

 

[silmarg]

yes, the property tax portion of you MF is deductible.

I am a tax practitioner and looking to be DVC member.

 

[bumbershoot]

Very basic question....for it to be deductible, do you have to already own a home?

 

[silmarg]

Very basic question....for it to be deductible, do you have to already own a home?

No you dont need to already own a home. All ad valorem taxes imposed on an annual basis on personal property are deductible. (Ad valorem means that tax is based on the value of the property). Some places (like CT or MA) base their annual automobile registration on the value of the car. If so, that tax is also deductible.

But it will only be deductible if you already itemize your deductions...

 

[bumbershoot]

But it will only be deductible if you already itemize your deductions...

There's the kicker for us.

Thank you SO much for answering me, and giving me extra info, b/c it was that extra that was relevant to me! Thank you!

 

[dizfan]

One more question for the tax experts out there.

For the property taxes to be deductable on 2009 (or whatever year it is for the upcoming) taxes, do we need to pay dues by the end of this year?

 

[silmarg]

One more question for the tax experts out there.

For the property taxes to be deductable on 2009 (or whatever year it is for the upcoming) taxes, do we need to pay dues by the end of this year?

99.99% of "real" taxpayers are cash basis taxpayers ("real" means breathing human beings as opposed to "corporate" taxpayers).

A cash basis taxpayer only pays tax on income when paid and gets a deduction when paid. So it does not matter when you get the bill, it matters when you pay it.

 

[nzdisneymom]

We are able to include property tax portion when we itemize our tax deductions.