DVC and TAX TIME??????

[KYCruiseCrazy]

Ok, it's tax time!!!!! Now i was just wondering for those of you who are DVC members and live in a state other then FL, if you have to pay FL taxes or claim this on your 1040? just wondering cause we are looking to buy DVC in Jun-July 2010 so any help with taxes is great. I would like to also know if taxes are different either way to buy DVC, through WDW or a time share place? (we are looking into both ways! you know the most bang for your buck!!)

 

[silmarg]

Owning a DVC will not give rise to having to file a Florida tax return.

Here are some tax issues that may arise with DVC ownership:

Part of DVC MFs are for property taxes. If you itemize on your 1040, you can inlcude this portion of MF as an additional deduction.

If you have a mortgage on your DVC it may be deductible (unlike property taxes, which are absolutely deductible, there are fact patterns where the mortgage may or may not be deductibe... it depends how many mortages you have and what the total amount of your mortgages are).

Part of your MF go towards capital improvements. The costs add to your basis in your DVC. This comes into play only if you were to sell your DVC... at what appears to be a gain, you can reduce the gain (and the tax thereon) by the amount of capital improvements (and you can further reduce the gain by closing costs paid on both the buy and sell side).

 

[erionm]

Depending on ones tax situation, the property tax portion of the annual dues my be deductible on the federal return. If financed as a mortgage (Disney financing is a mortgage), the mortgage interest may be tax deductible on the federal return.

Every ones tax situation is different and a qualified tax professional should be consulted.

 

[crisi]

Owning a DVC will not give rise to having to file a Florida tax return.

Renting your points does obligate you to pay Florida sales and use tax, which is being discussed in another thread (and which I suspect almost no one actually does). But if you don't rent, you don't have to worry about paying more tax, and may get some (small) benefits.

 

[KYCruiseCrazy]

wow some answers faster then i thought!! thanks everyone so far

 

[silmarg]

Renting your points does obligate you to pay Florida sales and use tax, which is being discussed in another thread (and which I suspect almost no one actually does).

That is correct, rentals are subject to sales tax in Florida....

 

[Crystal_27]

Hijacking a bit - - does DVC send any sort of tax forms showing taxes paid, interest paid, etc.? Thank you!

 

[KYCruiseCrazy]

that's a good question!!!!

 

[henri + katie's mum]

Part of DVC MFs are for property taxes. If you itemize on your 1040, you can inlcude this portion of MF as an additional deduction.

Based on this, what exactly should I take to my accountant so she can file my taxes correctly?

 

[silmarg]

Based on this, what exactly should I take to my accountant so she can file my taxes correctly?

I am not yet a member, so I dont know what DVD provides you. But I have seen other threads where folks at that X/pt of the MF is for taxes and Y/pt is for Capital Expenses, etc...

If my client (I am a tax accountant) gave me that... I would think its satisfactory to base a deduction on.

 

[erionm]

Hijacking a bit - - does DVC send any sort of tax forms showing taxes paid, interest paid, etc.? Thank you!

The only form you may get would be for mortgage interest if financed by Disney or another lender that wrote it as a mortgage.

For property taxes, you will have to use the Actual value from your annual dues statement.

 

[flipflopmom]

So, we financed through Disney. Should I be awaiting a mortgage paper from them? This, and the annual dues statement should be all we need to take to CPA?

 

[erionm]

So, we financed through Disney. Should I be awaiting a mortgage paper from them? This, and the annual dues statement should be all we need to take to CPA?

They will send you a Form 1098 that will show the amount of mortgage interest paid. You would want to give your CPA the 1098 along with the annual dues statement that shows the 2009 Actual Property Tax amount.

 

[rentayenta]

They will send you a Form 1098 that will show the amount of mortgage interest paid. You would want to give your CPA the 1098 along with the annual dues statement that shows the 2009 Actual Property Tax amount.

 

[zalansky]

Crud! What if that statement was thrown out in error? I paid the dues and tossed the paper forgetting that info was on it.

 

[3happydancers]

Crud! What if that statement was thrown out in error? I paid the dues and tossed the paper forgetting that info was on it.

Hmm, I wonder if DVC membership at the 800# would be able to supply a copy for you?

 

[FloridaDisneyFan]

I would think they would be able to provide that information for you. I am a CPA in Florida an they have all of that information so it should be not problems to reproduce it for you. I am sure you are not the only DVC member that has thrown away statements to realize you need them at tax time.

 

[erionm]

Crud! What if that statement was thrown out in error? I paid the dues and tossed the paper forgetting that info was on it.

The annual dues statement details are available on the member website.

 

[zalansky]

The annual dues statement details are available on the member website.

Thank you! I had looked online but missed it under the dues info. DUH! Now I just need to find out how much I paid in interest on one of my loans.

ETA; found it.