DVC contract sale and Taxes

[nelle]

We just sold two of our contracts and was wondering if we have to pay income taxes on these??
Thanks for the help!

 

[Donald is #1]

I would assume that it depends upon whether you sold them for more than you bought them. If you did, then I would think that you would need to pay income tax on the profit.

 

[Donna]

You will get the tax form in the mail from DVC. i forget the form no., i just turned mine in to our tax preparer. i sold 3 in one year and didn't think it made much of a difference.

 

[WDWLVR]

I checked with our accountant as we have one contract up for sale right now. We will be taxed on any profit we make minus any fees that are incurred.

 

[MichelleB]

Can you deduct dues paid over the life of the contract?

 

[SSRFred]

Can you deduct dues paid over the life of the contract?

Generally the answer is No. There are circumstances where a small portion of the dues can reduce your profit. You'll have to talk to your accountant when the need arises.