Business write off?? Anyone found a way??

[HFC1969]

Just curious if anyone has ever purchased DVC thru a business or corp??

 

[crisi]

I haven't. You will want to talk to your own tax advisor and be very careful regarding its business use - a timeshare in a corporation is a huge audit flag and the writeoff rules for business travel are fairly complex. The IRS has caught on to that one.

 

[Simba's Mom]

Yes, be very careful. And remember-some of us here work with the IRS.

 

[HFC1969]

Yes, be very careful. And remember-some of us here work with the IRS.

I take it your not voting for Ron Paul....


Defiantley something I would not do without consulting a professional...

Just thought I would ask.

 

[Dean]

It has been done but I agree one needs to be VERY careful. What you can't do is buy it as a business expense and use it in any large part for personal trips. The other direction is difficult to impossible as well, staying at DVC on a business trip and deducting that portion of the trip or getting an employer to reimburse the value of the room that one got using their points.

 

[graygables]

OK, I am my own tax preparer and this year was my first using DVC points during business-related trips. I was going to calculate the cost of the points (sale price/days in contract x number of days used + maintenance fees) as my basis for the deduction as a business expense. Is this a no-no??? This was also my first year in business where I even had to keep track of these kinds of things...

 

[Dean]

OK, I am my own tax preparer and this year was my first using DVC points during business-related trips. I was going to calculate the cost of the points (sale price/days in contract x number of days used + maintenance fees) as my basis for the deduction as a business expense. Is this a no-no??? This was also my first year in business where I even had to keep track of these kinds of things...

My understanding is no, you can't do this. It's no different than using a house you own for a business trip. But I must say that I see it as a gray area so YMMV. This quote may have some minor applicability, I'll let you judge how much.

(a) Before a tax deduction can be claimed for [travel expenses] which are covered by an eligible [travel allowance], the amount being claimed must actually be ‘incurred’ (i.e., the employee has ‘paid’ the expense or has become liable to pay the expense).

 

[SamSam]

OK, I am my own tax preparer and this year was my first using DVC points during business-related trips. I was going to calculate the cost of the points (sale price/days in contract x number of days used + maintenance fees) as my basis for the deduction as a business expense. Is this a no-no??? This was also my first year in business where I even had to keep track of these kinds of things...

You can take a business trip and write off the cost of the hotel, so it would make sense that you should be able to figure the cost of DVC for the number of nights and be okay. BUT, we're dealing with the government and the rules don't always make sense. Check with an accountant before attempting writing off a DVC stay, even when the stay is mostly business!

 

[tomandrobin]

I just don't mix work and pleasure.....don't want to mess up a good thing!

 

[graygables]

I just don't mix work and pleasure.....don't want to mess up a good thing!

My work is a pleasure, but I do have to mix the two. If I have a show at WDW, then you bet I'm going to have a little fun while I'm there! I was really "bummed" when I looked at my show schedule and saw that I had a 3 day "layover" between Fort Lauderdale and Raleigh...guess what's on the map between those two???

 

[salmoneous]

You can take a business trip and write off the cost of the hotel, so it would make sense that you should be able to figure the cost of DVC for the number of nights and be okay.

The problem is he isn't staying in a hotel.

The theory - right or wrong - is that he is essentially staying in his own home. And you don't get to deduct the cost of your home for the nights you stay there.

In general, the IRS is very uncomfortable with people taking a deduction for money they *could* have paid, or they *could* received.

As always, never take tax advice from folks on the internet. Maybe this deduction is legit, maybe its not. But, based on similar situations, he needs to be very careful.

 

[OlderMan]

We used our DVC for stays in Orlando when we were living in Upstate NY and DW had a conference in Orlando.

Even though she was reimbursed for the cost of the conferences, rental cars, meals out, airfare, etc, she never tried to have our DVC stay reimbursed.

First, how do you value it? (I know you can check rental boards, etc) Second, it is YOUR home (away from home) and you cannot deduct the expenses associated with staying in your own home (as a PP said).

Just my $0.02...

 

[kgc07]

I wonder if you can take the profit you made selling a 2nd home and buy DVC points with it, thus not making a profit from the sale because you bought the DVC points.

 

[JimMIA]

Business write off?? Anyone found a way??

Any time I see a thread like this, I have two concerns

1. That someone is trying to do something they know is not permissible, and trying to get others to convince them there's a way (wink, wink) to get away with it.
2. That someone is trying to manufacture a rationale of questionable authenticity for buying DVC because the real, legitimate reasons for a DVC purchase don't justify a purchase in their case.

 

[snowbunny]

Any time I see a thread like this, I have two concerns

1. That someone is trying to do something they know is not permissible, and trying to get others to convince them there's a way (wink, wink) to get away with it.
2. That someone is trying to manufacture a rationale of questionable authenticity for buying DVC because the real, legitimate reasons for a DVC purchase don't justify a purchase in their case.

Yes...I tried to come at it from this perspective to justify DVC purchase. All the information I could find advised not to do it unless your underlying intention was indeed for business. And for most of us, that is just not true.

I've used the IRS home office exemption for several years (I really do work full time from home) without triggering an audit (knock on wood). This just seemed to be pushing it.

 

[graygables]

Thanks everyone for the feedback to my question. I guess I never considered the "home" part, so I'll just be grateful that my business takes me to my happy place and leave the IRS out of it! I also do the home office thing, but I work more than full time out of it and am very careful to keep receipts and records. I absolutely do NOT want to get out of paying what I owe, but I don't want to pay anymore than that, either, b/c I missed something!

 

[Dean]

We used our DVC for stays in Orlando when we were living in Upstate NY and DW had a conference in Orlando.

Even though she was reimbursed for the cost of the conferences, rental cars, meals out, airfare, etc, she never tried to have our DVC stay reimbursed.

First, how do you value it? (I know you can check rental boards, etc) Second, it is YOUR home (away from home) and you cannot deduct the expenses associated with staying in your own home (as a PP said).

Just my $0.02...

We've had this discussion at least once here I believe and at least twice on dvctalk. The only way you could get an employer to compensate you for accommodations you don't actually pay for is to have them give you the per diem rate for lodging just like they can for meals. I know some will but most won't and require a statement that specifies the expenditures. Given I was in SF for a week about 2 months ago and used a Marriott reward certificate, I asked my employer if they would give the per diem instead and they said no. I asked the CFO at the Hospital where I am on staff and he said they would not either. I also know the Military, Fed Gov and State of FL would not use this approach. The employer wants something they can use to document the expense since they will write it off their taxes.