DVC is it consider real estate/investment, if so how do i put a value on it ?

[wdwstar]

Im filling out college forms for "Early estimate form for funding"
and one of the questions is assets net real estate/investments value ?

 

[wdwstar]

I decided at this point i will not disclose my DVC on the college forms,
i remember when we were filling out forms for a loan & the bank really didnt care about us claiming DVC since we didnt have a loan on the DVC and the bank didnt consider it as an asset.

 

[DVC Grammy]

Im filling out college forms for "Early estimate form for funding"
and one of the questions is assets net real estate/investments value ?

DVC is just like that Mastercard ad................."priceless" !

Seriously, we don't include it on any type of $ applications either. My understanding is that DVD doesn't enter it on your credit report anyway.
We do list it on our taxes, since there are real estate taxes to report, but we use approximate current values.

 

[MiaSRN62]

Hi wdwstar,
I asked a very similar question last year when my oldest entered college. I got mixed responses about how to declare our DVC and even got a tad "blasted" by a couple of posters. I did end up reporting it. Here is my thread from last year:
http://www.disboards.com/showthread.php?t=774809&highlight=fafsa
I was almost even nervous to post a reply here because of some of the responses I received on my thread. Hopefully this one stays more positive and constructive. I really was confused on how to declare it. Good luck.

 

[DVC Grammy]

Uh-oh..........should I duck?

 

[JimMIA]

I would consider DVC a pre-payment of vacation lodging expenses, and therefore would not declare it -- either on a college scholarship/loan application or as an asset to make my financial statement look better. To me it's a depreciating asset which is eventually going to be worth nothing -- not an investment.

I'm sure some accountants would disagree, but that's my non-professional opinion.

 

[bpmorley]

I wouldn't disclose it on anything. The only time it should come up is if you're making a profit from it and even then it's a gray area because who knows how much anyone is making. There is not set renting amount unless DVCers are going through a rental company, which I doubt. I've never rented but if I did I would do it for cash and nobody would have to know anything. Besides if you're using it for personal use the only thing anyone would get out of it, besides great vacations, would be the the small tax amount on an itemized sheet. So IMHO I wouldn't disclose it. By the way I'm retired from the IRS. Not sure if that means anything, but thought I would add it anyway

 

[Mickmse2002]

Good question, we have to make the same decision soon.

 

[CarolA]

I don't consider DVC an investment. Basically it's a timeshare and any good investment advisor would tell you that time shares are NOT an investment. Yes, right now you MIGHT make money if you sold it, but I expect that as the contracts near thier end that will not be true anymore....

 

[MiaSRN62]

DVC Grammy says : Uh-oh..........should I duck?

I honestly don't know. There doesn't seem to be a unanimous agreement on which is the correct thing to do. I did declare it, but perhaps I didn't need to. I also declared my Vistana timeshare and I know for sure I wouldn't make any profit from selling that.

. To me it's a depreciating asset which is eventually going to be worth nothing -- not an investment.

This is how I see it as well Jim. But I declared it based on the fact that I was afraid that it would look like I was being deceptive on the FAFSA if I did not. I didn't want to jeopordize any chances of getting a grant. At the time, it just seemed like a gray area to me.

 

[Sammie]

I am not sure unless you contact FAFSA or your child's FIN aid office you will know for sure, but when I applied we got a FAQ given to us and this was included.

Q: I own timeshares. How do I go about getting a value for the property?
A: One suggestion is to contact the agency that manages the timeshares to see if they can give you an estimated figure of their worth if you were to sell them. Otherwise, make your best estimate.

And that is only if you considered DVC a timeshare. Hard question.

This was also included.
The current market value of any residential or commercial property OTHER THAN THE PRIMARY RESIDENCE is reported on the
FAFSA. (The current market value is the amount for which the
property could be sold as of the date the application was signed.)
Property to be reported should include vacation homes and rental
property.

 

[kdzgon]

I am not sure unless you contact FAFSA or your child's FIN aid office you will know for sure, but when I applied we got a FAQ given to us and this was included.

Q: I own timeshares. How do I go about getting a value for the property?
A: One suggestion is to contact the agency that manages the timeshares to see if they can give you an estimated figure of their worth if you were to sell them. Otherwise, make your best estimate. And that is only if you considered DVC a timeshare. Hard question.

This was also included.
The current market value of any residential or commercial property OTHER THAN THE PRIMARY RESIDENCE is reported on the
FAFSA. (The current market value is the amount for which the
property could be sold as of the date the application was signed.)
Property to be reported should include vacation homes and rental
property.

This thread could easily head the same direction as "should I declare my 3 yr old.. <paraphrased>", but here goes my 2 cents. DVC purchases are listed as an interest in real estate and a formal deed is recorded. Each owner is listed within the county as an owner of real estate, and each pays real estate taxes on said ownership. DVCs also fit the legal definition of "timeshare" in most if not all states. I don't see how anyone could "interpret" those statements in any different manner. "Let your conscience be your guide" here.

Just because the asset will decline in value does NOT mean it is not an asset. Autos, boats, jewelry, etc are assets, as are stock portfolios - any and all could (and most do) decline in value - would you leave all of that off financial statements, too? Assets need not be "profit makers" either. As to being a prepaid vacation plan, prepaid college or funeral plans (and annuities) are usually considered assets as well. If the plan is not transferable in any way, the value would be substantially reduced as a result, but it still would not be $0.

That said, should you decide to value your ownership for the purposes of FAFSA, I believe the accurate valuation would be the "fire sale" price for the asset. That is, if you had to sell the asset today, what would a "willing buyer" pay for it? Remember to make allowances for expenses of the sale to get your net value.

 

[Sammie]

This thread could easily head the same direction as "should I declare my 3 yr old.. <paraphrased>", but here goes my 2 cents. DVC purchases are listed as an interest in real estate and a formal deed is recorded. Each owner is listed within the county as an owner of real estate, and each pays real estate taxes on said ownership. DVCs also fit the legal definition of "timeshare" in most if not all states. I don't see how anyone could "interpret" those statements in any different manner. "Let your conscience be your guide" here.

Just because the asset will decline in value does NOT mean it is not an asset. Autos, boats, jewelry, etc are assets, as are stock portfolios - any and all could (and most do) decline in value - would you leave all of that off financial statements, too? Assets need not be "profit makers" either. As to being a prepaid vacation plan, prepaid college or funeral plans (and annuities) are usually considered assets as well. If the plan is not transferable in any way, the value would be substantially reduced as a result, but it still would not be $0.

That said, should you decide to value your ownership for the purposes of FAFSA, I believe the accurate valuation would be the "fire sale" price for the asset. That is, if you had to sell the asset today, what would a "willing buyer" pay for it? Remember to make allowances for expenses of the sale to get your net value.

Not sure why you quoted me, I did not ask the question. I simply shared what info was given to me years ago when I asked the same question.

I did not state my personal feelings on whether you should or should not list it.

 

[denecarter]

Something about the wording on the FAFSA made me put DVC. Don't remember what right this minute.

Whatever you value your points at, don't forget to subtract any that you might still owe on it (if you financed).

 

[kdzgon]

Not sure why you quoted me, I did not ask the question. I simply shared what info was given to me years ago when I asked the same question.

I did not state my personal feelings on whether you should or should not list it.

Sorry for the confusion, Sammie - I just quoted you because you referenced some of the FAFSA info, and because you addressed some of the same recurring issues in the thread, not for any other specific reason.

 

[Sammie]

Sorry for the confusion, Sammie - I just quoted you because you referenced some of the FAFSA info, and because you addressed some of the same recurring issues in the thread, not for any other specific reason.

Thanks just was not sure if we were agreeing, or not.

 

[dumbo71]

I wouldn't disclose it on anything. The only time it should come up is if you're making a profit from it and even then it's a gray area because who knows how much anyone is making. There is not set renting amount unless DVCers are going through a rental company, which I doubt. I've never rented but if I did I would do it for cash and nobody would have to know anything. Besides if you're using it for personal use the only thing anyone would get out of it, besides great vacations, would be the the small tax amount on an itemized sheet. So IMHO I wouldn't disclose it. By the way I'm retired from the IRS. Not sure if that means anything, but thought I would add it anyway

You worked for the IRS and recomed cheatingon your tax returns??? Brave man.

My motto: When in doubt declare it.

 

[bpmorley]

You worked for the IRS and recomed cheatingon your tax returns??? Brave man.

My motto: When in doubt declare it.

Damn right I do.

 

[all5ofus]

I think two different concepts are being used interchangably here. Real estate, or a partial interest in real estate, is an asset. That asset may or may not be an investment or income producing asset depending on how it is used. DVC is an asset and it has a fair market value which is easily determined by the resale market. If you wanted or needed to, you could sell those points for cash.

If you held the points for the purpose of renting ( not to open a commercial renting discussion here) those points would would be considered income producing property and revenue produced may need to be reported as a source of income.

You worked for the IRS and recomed cheatingon your tax returns??? Brave man.

My motto: When in doubt declare it.

I am a former revenuer myself. In a training seminar I had once an instructor who was able to reduce the thousands of pages of tax code to a single sentence: If it feels good, it's taxable.

 

[bpmorley]

I am a former revenuer myself. In a training seminar I had once an instructor who was able to reduce the thousands of pages of tax code to a single sentence: If it feels good, it's taxable.

I go by: What Uncle Sam doesn't know won't hurt him. But, to each their own.