Disney DVC Financing Questions

[Music Mom]

We have a few more questions as we approach our final decision about buying...

1. Is the interest on a DVC loan tax deductible?
2. Are the annual maintenance fees tax deductible?
3. If we finance for 10 years, but want to pay it off earlier, is there a penalty?

I've looked all over these boards for the answers to these questions, but can't find them. Thanks to everyone for all of your help!

 

[RachelTori]

We have a few more questions as we approach our final decision about buying...

1. Is the interest on a DVC loan tax deductible?
2. Are the annual maintenance fees tax deductible?
3. If we finance for 10 years, but want to pay it off earlier, is there a penalty?

I've looked all over these boards for the answers to these questions, but can't find them. Thanks to everyone for all of your help!

The interest on the loan CAN be tax deductible; in most cases it will be.
Maintenance fees are not tax deductible, except for the portion that is Property Tax.
No penalties for paying off early. You can make additional payments online via credit card easily. Any given day, you can also check your balance online and the payoff amount for that day.

HTH!

 

[Josh125]

Hello - My wife and I are also looking at buying. Our game plan is to but the balance of the purchase on a rewards credit card and then use a home equity loan to pay it off. We can get a muuuuch more competative rate using home equity vs. going with DVC financing. If I remember correct, DVC was asking ~11%, which is just horrible.