Are there any tax deductions for members?

[vacationlover]

Does anyone know what is deductible and what is not for tax purposes? I believe the real estate tax portion of our annual dues is deductible but am not sure about any other parts of our dues. I believe the mortgage interest IS NOT deductible since it's not a qualified residence. Any help is much appreciated.

 

[PamOKW]

Only the real estate portion of the dues is deductible. They always say to check with your tax consultant regarding deducting the interest paid on the DVC mortgage. Many people are able to deduct this.

 

[drusba]

The property tax portion of your dues is deductible. If you financed through Disney and thus have a regular mortgage transaction, you also get to deduct interest -- 2d vacation homes qualify for that; it does not need to be your residence.

 

[crisi]

re: deductibility of interest:

In addition to being a secured debt, you have to have spent time there this tax year. You can only write off interest on your primary and secondary residences (so if you are Ken Lay, with more than two houses, you only get to write off interest for two). You may be subject to itemized deduction limitations if your income exceeds some farily large amount, or be subject to AMT, or both. There is more and its confusing. Talk to an tax attorney or tax accountant. Or go to the IRS web site and search up "mortgage interest deduction" and see if you can make heads or tails of it.

(I'd be interested in a tax attorney's opinion on "having spent time there this year" with a DVC membership - I wonder if the IRS would only consider your home resort - the one you "own" to qualify, or if spending any points would do it. I suspect the first - but I am neither a tax attorney nor an accountant)

 

[Kick it up a notch!]

If you were interested in writing off the interest on the loan you should have taken a second on your primary residence, this would have given you a better interest rate and allowed you to write off the interest since the second is on your primary residence. That's what I did!