Canadian DVC owners, do you need to do anything for the IRS?

[newdeal]

I bought a resale DVC contract a month ago, we just the other day got some sort of letter from the IRS issuing me some temporary number because we don't have a social security number since we don't live in the states. Is there something that I need to be doing with this?

 

[supersnoop]

I bought a resale DVC contract a month ago, we just the other day got some sort of letter from the IRS issuing me some temporary number because we don't have a social security number since we don't live in the states. Is there something that I need to be doing with this?

Keep it for when you sell. When you sell, the IRS will withhold 10%, and you will have to file if you want it back. You'll be responsible for capital gains taxes if you make money on the transaction.

 

[DVCanadian]

I've bought 2 contracts and never received anything from the IRS.

 

[pharm55]

We bought resale a year ago and did not receive anything either.

 

[rcchello]

If you live outside the U.S. 10% of the proceeds of the sale of property located in the U.S. will be withheld to pay any capital gains from the sale. If you want the 10% back, since you will probably not sell a timeshare at a profit you will need an ID number (taxpayer identification number) to send in the tax forms to get a refund. If you do not have one you wild need to apply to the IRS to get one.

Go to the IRS site www.IRS.gov and type FIRPTA (Foreign Investment in Real Property Tax Act of 1980 ) or ITIN ( Individual Taxpayer Identification Number) into the search field to get more details.

 

[newdeal]

ok thanks but I was buying a DVC not selling. It said some form was filed without a social security number and that was why they issued me this

 

[peace_all]

ok thanks but I was buying a DVC not selling. It said some form was filed without a social security number and that was why they issued me this

Other then sale, I don't see the need for it. Early today I did a quick look into it, due to a question on the other board, and unless you have a large contract, and are renting it out for more than a certain amount of time, or meet certain US residency criteria, you should be ok.

Did you finance it?

 

[CMNJ]

ok thanks but I was buying a DVC not selling. It said some form was filed without a social security number and that was why they issued me this

Just a thought-was your seller also not a US citizen? If so (and they were applying to get the 10% tax back) the IRS form has to also include the social security #/tax ID of the buyer (we were told this when we considered purchasing a contract from an foreign seller).

 

[Lorajo]

We are Canadian purchasing from foreign sellers in another country as well.

We had to apply for the IRS tax number. I assume I will keep it in my file in case I ever sell.

We had to fill out an IRS form and do a short Skype interview with the accounting firm that Magic Title uses.

 

[NewDVCaddict]

My husband and I are in the process of purchasing our first resale and our sellers are from Canada. Just got "Buyer Open Escrow With Foreign Seller" documents where my husband and I have to provide our Social Security Numbers. The document says "You are purchasing this property from a foreign seller. The SELLER will be charged a 10% FIRPTA tax on this sale. By law, YOU (the buyers) are responsible for remittance of that payment to the IRS when buying from a foreign seller. We (Magic Vacation Title, LLC) gladly handle this for you at closing. We (Magic Vacation Title, LLC) will submit all tax forms on your behalf. In order to do so, we must report this under your social security numbers".

So, my questions, other than some additional forms at closing, does anyone know if I will get 1099s or anything else later on that will impact reportable income on my taxes (that I wouldn't have had if we were buying from a non-foreign seller? Does anyone know if purchasing from foreign sellers increases the time to complete the resale process? Any impacts on closing costs for the BUYER? Anything else we should be aware of purchasing from a 'foreign seller'? Many Thanks in Advance!

 

[newdeal]

thanks for the replies. Its only a 135 point contract, I contacted the closing company and they said just keep it for your records so I suppose that is what I will do

 

[tbay]

We live in Canada and purchased directly from disney we never received any IRS
Forms