Buying more points to use for DCL?

[Sandisw]

I honestly considered this recently…while on the Disney dream.

But then realized that in the end, having more DVC wasn’t necessary!

 

[intamin]

But then realized that in the end, having more DVC wasn’t necessary!

I would like to motion for a vote of no confidence

But seriously if the plan is to start taking more cruises then I'd just keep your funds as cash and skip the whole renting out part

 

[Sandisw]

I would like to motion for a vote of no confidence

But seriously if the plan is to start taking more cruises then I'd just keep your funds as cash and skip the whole renting out part

Hahah! Just my newest retirement career providing me with more opportunities for travel, including DCL!!

Plus, had I bought the point, it wouldn’t have been trade via DVC directly. I prefer the ease vs the price per point they are giving me!

Why I’ll be using points every year now for my AP!

 

[juliebee]

If they offered something like DVC but for an annual cruise program, I'd be soo tempted.

 

[Girlstar30]

If they offered something like DVC but for an annual cruise program, I'd be soo tempted.

I would definitely join

 

[intamin]

If they offered something like DVC but for an annual cruise program, I'd be soo tempted.

 

[Kingkonig]

If they offered something like DVC but for an annual cruise program, I'd be soo tempted.

While I agree I’d be tempted, I think the annual maintenance would be enough to dissuade me.

 

[sethschroeder]

It also is one of those things that they claim is acceptable under IRS rules so you don't have to claim the rental income on your taxes

This gets brought up but this is likely a false statement from everything I have read. Now regarding to if the IRS will even know that is up to you.


Barter is taxable
https://www.irs.gov/taxtopics/tc420

Further clarification from something I found a while back:
https://pmanagementgroup.com/complete-guide-on-timeshare-tax-deductions-2/

 

[HyperspaceMountainPilot]

Others have already mentioned it but I would definitely want more clarity from Disney about whether they are OK with an annual (3rd party!) cruise swap before buying points I intended to use for rentals most years.

I don’t want to see the 3rd party exchange option go away, but I also can see why Disney might want to discourage it if their own hotel bookings are soft.

 

[Cfabar1]

I would not be interested in maintenance fees on a cruise ship... just imagine the refurbishment costs....

 

[airjay75]

This gets brought up but this is likely a false statement from everything I have read. Now regarding to if the IRS will even know that is up to you.


Barter is taxable
https://www.irs.gov/taxtopics/tc420

Further clarification from something I found a while back:
https://pmanagementgroup.com/complete-guide-on-timeshare-tax-deductions-2/

These point swap transactions are interesting. In my view, these are not really pure bartering transactions because there is cash involved in the transaction and you never really relinquish your points. Essentially, you're renting your points and agreeing for the cash proceeds to be paid directly to the broker who, in turn, uses that to purchase your cruise. So, all you did was rent your points (and have rental income) and then purchased something with that cash. What the brokers have apparently decided is that, because the cash is never paid to you, they have no 1099 reporting obligation. And, if the IRS never receives a 1099, they have very limited ability to ever discover the transaction. No bank account statement, no credit card statement - probably some e-mail confirmations. But, unless you find yourself the subject of some intense audit (which is unlikely to happen absent some sort of very complicated tax situation), the IRS will not be going through your e-mails.

TBH, I think the IRS would be more likely to inquire about this if you attempted to report the income than if you simply never reported it all.

 

[Sandisw]

These point swap transactions are interesting. In my view, these are not really pure bartering transactions because there is cash involved in the transaction and you never really relinquish your points. Essentially, you're renting your points and agreeing for the cash proceeds to be paid directly to the broker who, in turn, uses that to purchase your cruise. So, all you did was rent your points (and have rental income) and then purchased something with that cash. What the brokers have apparently decided is that, because the cash is never paid to you, they have no 1099 reporting obligation. And, if the IRS never receives a 1099, they have very limited ability to ever discover the transaction. No bank account statement, no credit card statement - probably some e-mail confirmations. But, unless you find yourself the subject of some intense audit (which is unlikely to happen absent some sort of very complicated tax situation), the IRS will not be going through your e-mails.

TBH, I think the IRS would be more likely to inquire about this if you attempted to report the income than if you simply never reported it all.

And, if one rents on their own, it’s self reporting so if someone chooses not to, then IRS isn’t aware.

The only way to truly know if the lack of 1099, which the broker has said isn’t needed, was accurate if someone was audited and gave the information to them and they said it didn’t count.