Canadian DVC members selling contracts? Making the US$ work for us!

[mickeywho?]

I'm starting to notice quite a few "Canadian sellers" on the resale sites. Certainly makes financial sense to resell the points now - especially if they were purchased when our dollar was near par.

Anyone on the fence? I never thought I would sell my contracts but it might be a good time to scale back and take a good look at what I really need with the kids getting older and asking to travel to other places for a change of pace.

 

[keaster]

Obviously it would make sense to sell right now given how much ahead you could come out! However, even with the increase in maintenance fees due to the exchange rate, it still works for us. We would not be able to take the vacations we take with DVC if we had to pay with cash for every trip. For example in 2015 we did 10 days in Aulani in March and the DVC member cruise in August plus a couple resort days all on points. Even our flights to Hawaii we booked on Avion points. The trip to Hawaii alone would've cost way more than what we pay in dues.

 

[dsneygirl]

No. We've owned for 11 years, it's long paid off. Yes the dues sting with the exchange but we figure it's pay back for all those years of close to PAR and $59 flights. We used to go 3-4x a year. The past few years have been once but for a lot longer. This year is 14 days in a 1 bedroom.

I love not have to deal with discounts, watch for codes and stress over "free" dining. Just book my 1 bedroom at BLT and walk over to MK

We are however driving and doing less park days. We'll also eat more it the room.

 

[montrealdisneylovers]

Instead of selling, perhaps it's a good time to rent out some points and use that money for other vacations.

 

[Canadian Disney Mom]

I am renting my points this year but would not dream of selling yet. We had planned on skipping Disney this year anyway as we have 3 cruises and an AI booked.

The main reason I would not sell is 1) we still love going and 2) I would lose out if I ever wanted to rebuy. I have two 200pt contracts at SSR. One was bought direct @ $83pp back in 2005. I don't remember the exchange rate at the time but I think we ended up paying about $22,500 CAD. A few years ago we bought a 200 pt contract resale with the same UY for only $50pp and the dollar was pretty much at par at the time. If I sold and ever wanted to rebuy I would be a loss for me.

I am making the dues + more by renting this year. When I rent I am only taking certified check or money orders in USD for payment and they are going right into my USD savings account at CIBC to pay for future vacations

 

[disneymath]

Bought at or very near par, but not even thinking about selling. Short term (upcoming trip) will look to cut back on food/souvenir costs. if the dollar situation continues long terms (years), I may cinsider renting points at some point.

 

[PetePanMan]

we're thinking about it for one of our contracts for same reasons as you.

BTW...on some of resale sites they indicate "Canadian seller" or "UK seller" etc. - do you know why this is done?

 

[AdamsMum]

I keep thinking about selling one or two contracts. With a kid in university I could find a good use for the money, but then I think, there's no way I would pay cash price to stay at these resorts. I've stayed at BWV and AKV. This year I'm staying at OKW and PVB. The cash prices of these resorts would make my hair fall out, and the standard view points at Boardwalk are the best value ever. I noticed that one of the website is identifying Canadian or UK sellers but I don't know why.

 

[tgropp]

It's nice to dream about making money, especially when you lose it in funds. I purchased VWL and BCV in the low $70 range at near or above par but with two grandchildren under the age of 5, I can see making memories with them, the same as I made them with my children. For some, I can see it being very tempting though.

 

[DougEMG]

Even with today's high resale price and exchange rates, I'd rather rent out points than sell.

 

[3pletprincesses]

Any idea when you sell your dvc if we get taxed on that money ? we are thinking but never done it before. most of the info I can find in US tax info

 

[DougEMG]

Any idea when you sell your dvc if we get taxed on that money ? we are thinking but never done it before. most of the info I can find in US tax info

You have to pay a 15% US withholding tax (which the broker will withhold an send to the tax department) on the entire amount of the sale price. Then you have to file a US tax return if you are actually owned any money. You'll have to apply for a US tax number before you file the tax claim.

Was a huge pain the in the butt. Was confusing to figure out exactly what forms you had to send in. 1040NR is the starting form.

I had sent in my forms back in June 2015 and in Jan I called US tax office up to see if they had got the forms or if I had filled them out wrong. They said it would be at least a couple of more months before they got to them. Slow or what!

 

[AdamsMum]

Do you not have to pay U.S. income tax on rental income? I was considering renting my points, but thought that would be a big hassle.

 

[Donald - my hero]

Do you not have to pay U.S. income tax on rental income? I was considering renting my points, but thought that would be a big hassle.

We were going to open a cross border account with RBC but stopped when they wanted us to fill out IRS forms because the account actually pays a small amount of interest :O But i don't know about this situation

 

[mort1331]

Do you not have to pay U.S. income tax on rental income? I was considering renting my points, but thought that would be a big hassle.

I think technically you should claim it on your Canadian tax. But man I forget where to put that every year. Plus there is no where to put the dues to offset the income. I come out even plus or minus, so not really worried.

We were going to open a cross border account with RBC but stopped when they wanted us to fill out IRS forms because the account actually pays a small amount of interest :O But i don't know about this situation

Not sure about this one. We have had the RBC account now for couple of years and were never asked to do the forms when we opened one. I dont keep enough in there to earn interest. Keep the money in the Canadian US funds account and transfer down when dues are due.

 

[Sev]

We just sold a small contract at AK; we spend our winters in Kissimmee and hardly use our points. In any case, our selling price of $4,800 ended up netting us $3162.93 (cashed the cheque this morning), after all the deductions for taxes, commissions, title search etc. We did have to register for an IRS taxpayers number in order to recover the FIRPTA 15% foreign investors tax. So we should get that $700 back. It was a bit of a hassle considering we started the process in March when we were down there. We will keep our other points, bought in 1993 at almost par at $55 per point, and rent out if we do not use the for member cruises and so on. Anyone want to rent some points?

 

[Donald - my hero]

We just sold a small contract at AK; we spend our winters in Kissimmee and hardly use our points. In any case, our selling price of $4,800 ended up netting us $3162.93 (cashed the cheque this morning), after all the deductions for taxes, commissions, title search etc. We did have to register for an IRS taxpayers number in order to recover the FIRPTA 15% foreign investors tax. So we should get that $700 back. It was a bit of a hassle considering we started the process in March when we were down there. We will keep our other points, bought in 1993 at almost par at $55 per point, and rent out if we do not use the for member cruises and so on. Anyone want to rent some points?

How many points do you have and which resort is your home? I'm looking for January and the 7 month mark isn't for 10 days!!!
***never mind i just got this e-mail
Congratulations!

A reservation has been made in your name for a Studio at Old Key West for the dates of Thursday, January 19, 2017 to Thursday, February 02, 2017.