Claiming income from selling DVC points on your taxes

[billsfan]

What are peoples thoughts on claiming income received on selling DVC points thru David's Vacation Club Rentals

Thanks

 

[davper]

It's required by the IRS. But you can deduct the MF for the points you sold.

 

[CruzTerri]

What are peoples thoughts on claiming income received on selling DVC points thru David's Vacation Club Rentals

Thanks

To clarify - did you sell your points to Davids and no longer own them or did you use David's to broker a rental, and you're referring to the rental income?

 

[Poohs Pal]

I am interested in this also. If I used my points for Davids to rent do I claim the money earned on my income tax.

 

[Dean]

What are peoples thoughts on claiming income received on selling DVC points thru David's Vacation Club Rentals

Thanks

Technically speaking it's all income but you can deduct the dues and any direct costs. The 2 weeks a year free for a condo is not a realistic option for a timeshare like DVC.

 

[chalee94]

yep. i'm sure there are people who cheat but if the IRS finds it, they'll burn you down.

 

[CruzTerri]

So another question, and I may be in the wrong place for this, but has anyone received a 1099 from David's after having rented their points through David's? What if you took the initial payment in one tax year and received the balance in the next tax year? I wonder, is it the renter or David's who would be responsible for issuing the 1099 to the DVC owner?

 

[supersnoop]

So another question, and I may be in the wrong place for this, but has anyone received a 1099 from David's after having rented their points through David's? What if you took the initial payment in one tax year and received the balance in the next tax year? I wonder, is it the renter or David's who would be responsible for issuing the 1099 to the DVC owner?

David's operates out of Canada. Therefore, they are not required to send a 1099.

 

[Poohs Pal]

David's operates out of Canada. Therefore, they are not required to send a 1099.

This answers my question. Thank you

 

[Dean]

So another question, and I may be in the wrong place for this, but has anyone received a 1099 from David's after having rented their points through David's? What if you took the initial payment in one tax year and received the balance in the next tax year? I wonder, is it the renter or David's who would be responsible for issuing the 1099 to the DVC owner?

At least one of the rental companies does issue a 1099.

 

[LSchrow]

At least one of the rental companies does issue a 1099.

yes, I know this is an older thread, but.....
assuming the income would not bring one into a higher tax bracket, would the rental income then be taxed at the same tax rate? in other words, if one is (hypothetically) in the 25% bracket, would 25% be taken in taxes (not taking into account the minor deduction for maint on those points)?
and yes, I pay an accountant (close friend) to do my taxes

 

[supersnoop]

yes, I know this is an older thread, but.....
assuming the income would not bring one into a higher tax bracket, would the rental income then be taxed at the same tax rate? in other words, if one is (hypothetically) in the 25% bracket, would 25% be taken in taxes (not taking into account the minor deduction for maint on those points)?
and yes, I pay an accountant (close friend) to do my taxes

I don't think you understand our marginal tax rate system. Only income above the threshold is charged at the higher rate, so the tax bracket question is mostly irrelevant. The income will be taxed at the applicable marginal rate; typically your highest marginal rate.

 

[Dean]

yes, I know this is an older thread, but.....
assuming the income would not bring one into a higher tax bracket, would the rental income then be taxed at the same tax rate? in other words, if one is (hypothetically) in the 25% bracket, would 25% be taken in taxes (not taking into account the minor deduction for maint on those points)?
and yes, I pay an accountant (close friend) to do my taxes

You'd pay taxes on roughly half of the rental fee (rental price minus expenses mostly the maint fees) at your marginal tax rate.

I don't think you understand our marginal tax rate system. Only income above the threshold is charged at the higher rate, so the tax bracket question is mostly irrelevant. The income will be taxed at the applicable marginal rate; typically your highest marginal rate.

This seems to be a common misperception. Much like paying the mortgage company $10K to get a $3K tax deduction.

 

[LSchrow]

You'd pay taxes on roughly half of the rental fee (rental price minus expenses mostly the maint fees) at your marginal tax rate.

This seems to be a common misperception. Much like paying the mortgage company $10K to get a $3K tax deduction.

Thanks Dean, that made sense (including the mortgage reference )

 

[alldiz]

Wow I never even considered this, rented once few points, hope the IRS isn't reading lol
Kerri