DVC and Taxes

[jakespop]

Getting an early start on my taxes this year and have a question.

We purchased a DVC in 2010. Do I list that on my taxes?

While I don't expect to be able to write off anything, I want to make sure I am documenting properly. Will I be receiving a 1098 form showing mortgage interest?

I assume for next year, I will do same when writing off the tax portion of the annual dues. Is that correct?

 

[DVCGeek]

I think it depends on what you actually paid / were charged during 2010. Did your dues or mortgage payments start? If they have, you should get a 1098 for mortgage interest. Actual property taxes for 2010 would appear on your 2011 dues statement; there is no official government form.

I need to check into something similar; I purchased a small add-on in Dec. 2010 and although I do owe a tiny amount of 2010 property tax on it (literally just a dollar or two!) I'm not sure technically what year to list it on taxes (if I bother) because I haven't paid it yet...

 

[jakespop]

it was actually a resale but we did purchase / pay the dues on last years points

 

[DVCGeek]

Ahh, resale may change things some.

Did you pay your dues directly to Disney or did you pay them back to the previous owner? Not sure how it would break out if you paid them through an escrow account; you may want to call Member Accounting on this one...

If you didn't purchase from the Mouse then any mortgage related documents would come from your lender. However, unless you used a HELOC or something similar against your 'normal' house I don't think most (non-Disney finance) timeshare loans are technically mortgages... There are exceptions I'm sure though! GL figuring it all out.

 

[jakespop]

paid cash for the whole thing, so no mortgage.

As far as dues, looking at the settlement documents, we paid them back to original owner

Credit to Seller from Buyer for DVC 2010 Annual Dues / Main fees = xxx

 

[DVCGeek]

Ahhh. I'm no accountant, but it sounds like you probably won't have any (Federal) 2010 tax implications from this purchase then...

In Dec. 2011 the website should have your "Annual Dues Statement" for 2012, and that will include what your "Actual Property Tax" amounts from 2011. (Your 2011 bill only has estimated 2011 taxes on it)