Canadian DVC owners - selling question

[lovethesun12]

Hello all!

Haven't even used DVC yet and already planning on selling (considering another resort).

How much effort does it take to recover the 15%? Is it worth it? Just like to know what my options are and experiences from someone who has went through it.

Thanks in advance!

 

[mort1331]

we have not been thru it,,,but is it worth the IRS having your info?

 

[von Monster]

we have not been thru it,,,but is it worth the IRS having your info?

I'm not certain what your point is? They already have most of your financial information since you would have given it to them during the purchase, and when your money left Canada our government would have shared even more via FINTRAC.

On selling - It's fairly straightforward; there is a 15% FIRPTA withholding tax applied (really withheld by the buyer but that's semantics) that is reimbursable if you have an ITIN. There is a lady recommended here that can help you set everything up, I've included a link from the DVC forums with her contact info.

FIRPTA Withholding | Internal Revenue Service (irs.gov)
U.S. ITIN # application for Canadians! Help! | The DIS Disney Discussion Forums - DISboards.com

 

[bababear_50]

JMHO (Just My Honest Opinion)
Not worth it.
I've bought and sold a few times.

Hugs
Mel

 

[lovethesun12]

I'm not certain what your point is? They already have most of your financial information since you would have given it to them during the purchase, and when your money left Canada our government would have shared even more via FINTRAC.

On selling - It's fairly straightforward; there is a 15% FIRPTA withholding tax applied (really withheld by the buyer but that's semantics) that is reimbursable if you have an ITIN. There is a lady recommended here that can help you set everything up, I've included a link from the DVC forums with her contact info.

FIRPTA Withholding | Internal Revenue Service (irs.gov)
U.S. ITIN # application for Canadians! Help! | The DIS Disney Discussion Forums - DISboards.com

Thanks so much!

 

[lovethesun12]

JMHO (Just My Honest Opinion)
Not worth it.
I've bought and sold a few times.

Hugs
Mel

Is it because of the timeline? I'm guessing you don't bother with it anymore?

It would mean taking a $3000 loss for me.

 

[von Monster]

JMHO (Just My Honest Opinion)
Not worth it.
I've bought and sold a few times.

Hugs
Mel

Depends on how much your sold contract is worth; with the recent point inflation I just did a quick calculation that my withholding tax would be north of $10,000 USD. A little paperwork to recover even a portion of that seems well worth it.

 

[bababear_50]

Is it because of the timeline? I'm guessing you don't bother with it anymore?

It would mean taking a $3000 loss for me.

Small contracts &
I'm just a very private person.
They do know my Name & Address .
I have never financed my purchases.

I do believe ITIN # numbers will expire after a certain period of time and a renewal will have to be done.
https://www.irs.gov/individuals/itin-expiration-faqs

 

[lovethesun12]

we have not been thru it,,,but is it worth the IRS having your info?

Lol, that's what I'm trying to figure out. So far I just gave the U.S. a lot of my money so I feel like if anything they should like me and I'm not sure why it would be an issue, lol...

 

[lovethesun12]

Small contracts &
I'm just a very private person.

Thanks That's fair. I'm really being pulled between being private and $3000 LOL.

 

[von Monster]

Is it because of the timeline? I'm guessing you don't bother with it anymore?

It would mean taking a $3000 loss for me.

Contact Nancy Carpenter from the second link I left, she can do pretty much everything for you. F.I.T.S. - Foreign Investors Tax Service (fitaxes.com)

I'm also not sure I buy the privacy argument - the US government already has almost everything you would be sharing via an ITIN as it would have been given to them by FINTRAC when your money went to the US in the first place.

 

[bababear_50]

I am a bit confused here
FINTRAC
https://www.fintrac-canafe.gc.ca/guidance-directives/transaction-operation/1-engI thought suspicious Transactions/Activities were handled and reported to them ?

 

[von Monster]

I am a bit confused here
FINTRAC
https://www.fintrac-canafe.gc.ca/guidance-directives/transaction-operation/1-engI thought suspicious Transactions/Activities were handled and reported to them ?

It's not suspicious transactions - ALL transactions over the reporting guidelines ($10k is the self report limit) are reported to them. Your financial institution would have reported either the wire or bank draught when it was made and shared that information FinCEN in order to ensure the transaction wasn't financing terrorism or organized crime.

FINTRAC Definition (investopedia.com)
Compliance with FINTRAC and FinCEN | AML Features in CurrencyXchanger (clearviewsys.com)

 

[bababear_50]

It's not suspicious transactions - ALL transactions over the reporting guidelines ($10k is the self report limit) are reported to them. Your financial institution would have reported either the wire or bank draught when it was made and shared that information FinCEN in order to ensure the transaction wasn't financing terrorism or organized crime.

FINTRAC Definition (investopedia.com)
Compliance with FINTRAC and FinCEN | AML Features in CurrencyXchanger (clearviewsys.com)

Good to know.

 

[lovethesun12]

Contact Nancy Carpenter from the second link I left, she can do pretty much everything for you. F.I.T.S. - Foreign Investors Tax Service (fitaxes.com)

I'm also not sure I buy the privacy argument - the US government already has almost everything you would be sharing via an ITIN as it would have been given to them by FINTRAC when your money went to the US in the first place.

Thanks I will contact her when (if?) I sell later this year

 

[Benchedguy]

We have not sold but when doing our homework, we also looked into renting the points out if we couldn't use them and the rental more than paid for the dues even with reporting income. Have you looked into that?

 

[lovethesun12]

We have not sold but when doing our homework, we also looked into renting the points out if we couldn't use them and the rental more than paid for the dues even with reporting income. Have you looked into that?

Thanks! I am definitely considering that route as well