Dues and taxes

[MJ6987]

Hi,
As I am from the UK I don't really understand the US tax system (I don't really understand the UK one either, but then nobody does).

Do the oft quoted figures for dues include taxes (6.5%?) or do you have to add tax on?

Thanks
Matthew

 

[Mickey'sApprentice]

Taxes are included in the MFs.

The reason the taxes are itemized within the MFs is that in the U.S. you can deduct the amount paid in property taxes on your federal and/or state income taxes.

I have no idea if you can do that in the UK, or if it is even applicable for property outside the country.

 

[drusba]

US tax system: take your paycheck, turn it over to the back, endorse it, and then hand it to the nearby government official with his hand out.

The annual dues you see quoted per point per year on this site include the amount for taxes, which in this case would be for property taxes relating to the building and land.

 

[MJ6987]

OK thanks for clearing that one up for me.

 

[dizplanner]

Although property taxes are not 6.5%. But all taxes you need to pay on your DVC are including in the membership fees number. The other reason it is separated out is DVD estimates how much the property taxes will be and then gives you a credit or charges additional the next year to true up the estimate with the actual taxes. That is why the January payment is different if you have monthly payments.