DVC IRS tax deductions as 2nd home

[crisi]

With those numbers, I would say that is 30% and that is a lot. With many tax returns, each dollar deduction can possibly equate to a dollar added to your return and money back in your pocket. It all helps.

Anytime you want to pay me an extra $1 so that the government will give you $.30 back, you are welcome to send me a check.

What 'helps' is not paying interest on a luxury purchase at all. If money is so tight that the 30% deduction is the difference between doing it and not, don't do it.

 

[tammymacb]

Another tax question- I just jumped online to seach this-

If I sold points at a loss ( Bought a resale when BWV was quite high and sold this year when parking went away at a loss ) what do I need to do regarding income taxes. I was going to use turbo tax, but is this something I need to go to the accountant for?

 

[chalee94]

If I sold points at a loss ( Bought a resale when BWV was quite high and sold this year when parking went away at a loss ) what do I need to do regarding income taxes.

easy. you don't have to do anything.

if you had a gain, you would owe taxes on it. but since you have a loss, you cannot deduct them. (buying timeshares is treated kinda like gambling.)

edited to add link - see item 4:

http://www.irs.gov/newsroom/article/0,,id=106799,00.html

 

[BuzzBiteyear]

Another tax question- I just jumped online to seach this-

If I sold points at a loss ( Bought a resale when BWV was quite high and sold this year when parking went away at a loss ) what do I need to do regarding income taxes. I was going to use turbo tax, but is this something I need to go to the accountant for?

Unless this timeshare was purchased as an investment property (good luck proving that, even if you never used it) or you converted it to a rental property (renting it out to others), any loss you have on a sale such as this is not deductible. Some people will say, oh just wait and sell it next year after you convert it to a rental and rent your points out this year. That likely won't work either, as the basis in that property would be the lesser of the cost you paid for it vs. the current fair market value of the property.

Really the only ones who could get any tax benefit now would be those who purchased the property and immediately converted it to a rental property and have rented the points out to others.



It is a raw deal, but at least it's a DVC property and you can resell it. I've been dealing with my grandmother, and had to break the news to her about this not being deductible on her taxes. As I looked further into it, I found out if she can find someone to take it from her, she should consider herself lucky, as the annual maintenance fees on her properties is borderline criminal.

 

[Scotch]

I sold our VWL contracts last summer, and our current annual dues statement no longer lists any info for VWL, so no actual 2009 property taxes information for VWL is included. Could someone give me that info? Also, since apparently DVC is not going to give me any adjustment for the VWL property taxes, if there is a difference between the actual and estimate, am I supposed to claim the estimated amount as that is the amount I actually paid (and no adjustments will be forthcoming)?

 

[LisaS]

I sold our VWL contracts last summer, and our current annual dues statement no longer lists any info for VWL, so no actual 2009 property taxes information for VWL is included. Could someone give me that info? Also, since apparently DVC is not going to give me any adjustment for the VWL property taxes, if there is a difference between the actual and estimate, am I supposed to claim the estimated amount as that is the amount I actually paid (and no adjustments will be forthcoming)?

The actual amount was .9369 (93.69 cents) per point. So if you owned 100 VWL points for example, you paid $93.69 in actual propery taxes for 2009. It looks like they overestimated the taxes by .0108 per point ($1.08 on a 100-pt contract).

Whoever paid the dues for 2009 would be entitled to the deduction so if the buyer reimbursed all/part of your dues for 2009 as part of the sale, then you can only deduct a portion of the property taxes based on the percentage of dues that you paid for 2009. If the buyer reimbursed you in full (as often happens with resale transactions) then your buyer gets the entire deduction.

That .0108 per point that you overpaid cannot be deducted on your taxes because it wasn't used to pay the property taxes. It was used for operating expenses or was put into the capital reserves fund. You can only deduct the amount that was actually paid to the taxing authority and that was .9369 per point.

 

[Scotch]

thanks for the reply. i can't recall who covered the m/fs! i'll go dig that info up.