Capital Gains for Canadian Reseller???

[sev34]

Hi,

I am a Canadian DVC member who is thinking of selling my points.

I read somewhere that the resale companies are obligated to forward 10% of the purchase proceeds to the American tax authorities, but that you can apply to get this money back if you have not realized a capital gain.

Does anybody have any experience doing this (I would be especially interested in any fellow Canadians who have gone through this)?

After paying commissions, I am quite sure that I will not realize any profit/gain on this transaction, so I am wondering how easily/quickly I might be able to get my 10% back.

I appreciate any assistance that you might provide.

 

[MaggieV]

Hi...don't have any recent info, but we did sell about 7 years ago. There was 10% deducted and you have to apply for an ITIN number, then file a US Income Tax form and you will receive your money back. We did make a small profit on our DVC points, but can't remember what happened with that.

 

[drusba]

It is called FIRPTA, the Foreign Investor Real Property Tax Act. Here is the IRS site where you can get some understanding and look for forms: http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html

Better, just google FIRPTA and huge numbers of sites with far more understandable explanations will come up. If you are dealing through a broker, ask them about and if they have info and forms. After you submit the forms and get an ID, it can take up to a few months to get your withheld money.