DVC IRS Tax Deduction ?

[Chic]

I plan to deduct the Property Taxes I paid on my DVC contracts. Does anyone know if this amount should be listed under "Real Estate Taxes" or "Other Taxes" when itemizing on a Schedule A form?

 

[OKW Lover]

Property Taxes = Real Estate Taxes

 

[maburke]

Just be sure to use the "actual taxes" paid in 2010 that appears on the statement you just got, not the "estimated taxes" that you paid a year ago. (I know it seems strange that it's not the year YOU shelled out that matters, it's the year they paid the taxes.)

 

[Chic]

Property Taxes = Real Estate Taxes

Thanks for the information OKW Lover. I just spoke with an IRS agent on the phone and also got the clarification that the DVC Property Taxes are listed as Real Estate Tax on line 6 of the Schedule A form.

 

[RatherB@Disney]

Just be sure to use the "actual taxes" paid in 2010 that appears on the statement you just got, not the "estimated taxes" that you paid a year ago. (I know it seems strange that it's not the year YOU shelled out that matters, it's the year they paid the taxes.)

What if I only paid estimated taxes? Here's my situation: I purchased resale last year, MF's for 2010 were paid by the seller. In December, I paid the 2011 MF's. Can I include the 2011 estimated taxes on my 2010 tax return, and then make the adjustment on next year's tax return when the actual 2011 taxes are disclosed?

 

[drusba]

What if I only paid estimated taxes? Here's my situation: I purchased resale last year, MF's for 2010 were paid by the seller. In December, I paid the 2011 MF's. Can I include the 2011 estimated taxes on my 2010 tax return, and then make the adjustment on next year's tax return when the actual 2011 taxes are disclosed?

I believe you cannot take the deduction until the 2011 tax year and then for actual amounts paid in taxes to government agencies. You are allowed to pre-pay and deduct RE taxes for an upcoming year if the taxes have actually been estimated and assessed by the government agency and the amounts are actually paid to that agency. In DVC's case that is not what is happening. DVD is estimating the amount of RE taxes by the applicable government agencies next year, charging you for the estimate and then it holds the money and does not pay the taxes until they are actually assessed and become due in the 2011 year. In that situation, there should no deduction until the 2011 year even though you make payment in 2010.