Canadian Thinking About Purchasing

[shaz14]

Are there any Canadians out there who can help to answer some questions? We have been contemplating purchasing on and off for a few years. The discussion is back on it seems We are in the early stages so don't know if we would go direct or resale. I wanted to know if there are any additional costs to purchasing DVC as a Canadian? I'm referring to any taxes or fees to be paid to either the US government or the Canadian government. Is this considered owning foreign property on our income tax returns? If so, how does that affect it?

I'm trying to avoid any surprises

 

[deedubb]

I would suggest posting in the Canadian section as there are a lot of DVC owners there. I just purchased resale at BLT and Disney has waived ROFR but the deal has not closed yet. I'm not aware of any of those issues but I would wait to hear from someone who has already owned for more than a year.

 

[shaz14]

Thanks! I didn't see that section before but I just found it Are you Canadian as well? From what I can see so far is that the IRS withholds 10% of the sale if you sell your points. You then have to submit paperwork to be reimbursed (assuming you don't make more than 10% off the sale).

 

[deedubb]

I am a fellow Canuck
I honestly didn't look into whether there were any implications of being a Canadian owner. It was somewhat of a spontaneous purchase, although I had thought about it for some time. Just decided to look into what was available for resale one day, saw a contract that really appealed to me, and just bit the bullet and made an offer. It was easy peasy. I was just notified a few days ago that Disney waived ROFR. Planning on purchasing some direct points as well but have not decided how many yet.

 

[keaster]

There are no additional taxes or fees tied to being a Canadian or any tax implications (it's not like owning a second home somewhere in the US.)

We are Canadian and purchase direct in 2011. Our dollar was above par at that time and the price were point was lower. If we were to buy now we would likely do resale with the way the exchange rate is.

 

[deedubb]

There are no additional taxes or fees tied to being a Canadian or any tax implications (it's not like owning a second home somewhere in the US.)

We are Canadian and purchase direct in 2011. Our dollar was above par at that time and the price were point was lower. If we were to buy now we would likely do resale with the way the exchange rate is.

You definitely had great timing. At least the loonie is on the rise right now, but still nowhere close to par.

 

[lorenni]

FIRPTA withholding would generally apply to the gross proceeds amount if you later sell the contract. In order to get that refunded, you would need to file a US tax return. In order to do that you would need a UD tax ID. So a fair amount of paperwork and perhaps tax accounting fees if you don't care to do the paperwork yourself. But only if you resell.

Can't say whether it has to be reported as a foreign property on your Canadian tax return. Probably - but when I filed my return this year the tax software didn't ask me about it? Horrible answer, I know. Now I'm going to go back and look at the rules on the CRA website...

 

[Cyberc1978]

Thanks! I didn't see that section before but I just found it Are you Canadian as well? From what I can see so far is that the IRS withholds 10% of the sale if you sell your points. You then have to submit paperwork to be reimbursed (assuming you don't make more than 10% off the sale).

Just for clarification it's 15% and not 10%. 10% was before it was changed years back.

 

[daddiojiggy]

we don't own anything. we are ALL just renting