DVC Rental-David's-DVC Rental Pros

[OHIOVACATIONER]

When using one of the rental agencies to rent out points I now noticed that paypal is asking me for my Tax ID number. I never received this request from paypal before so evidently now it has to claimed as income? Has anyone else noticed this? Also wondering if I have to claim as income can I claim the maintenance fees as expenses? Any thoughts on this would be appreciated. Thank you

 

[CaptainAmerica]

Rental income has always been taxable income, even if you rent privately to friends and family, and if you haven't been claiming it, technically that's tax fraud.

 

[OHIOVACATIONER]

Nice to know. This is actually my first experience with renting my points so all I can learn the better. Thank you

 

[thank_the_phoenicians88]

Unfortunately it is taxable income, and it is really had to deduct expenses from it to offset the revenue. I've read that you can't deduct maintenance fees. Easiest approach is just to claim 100% as taxable revenue if you file yourself.

 

[OHIOVACATIONER]

Thanks so much.

 

[starry_solo]

If you exceed $600 in the US, then PayPal will ask for your SSN....

 

[wishicouldgomoreofte]

https://www.aol.com/finance/irs-ditches-tax-requirement-caused-160527535.html

IRS is delaying for Tax Year 2022, but expect it in TY 2023. They still need your tax ID number though.

 

[CaptainAmerica]

https://www.aol.com/finance/irs-ditches-tax-requirement-caused-160527535.html

IRS is delaying for Tax Year 2022, but expect it in TY 2023. They still need your tax ID number though.

The IRS is delaying the requirement that the PayPals of the world file 1099s. They're not delaying the requirement that taxpayers report this type of income.

 

[wishicouldgomoreofte]

The IRS is delaying the requirement that the PayPals of the world file 1099s. They're not delaying the requirement that taxpayers report this type of income.

Correct. Thank you for clarifying. It always was law and always supposed to be reported. The 1099-Ks that will be issued by third party payments is what is new, and now delayed.

 

[AC168]

Unfortunately it is taxable income, and it is really had to deduct expenses from it to offset the revenue. I've read that you can't deduct maintenance fees. Easiest approach is just to claim 100% as taxable revenue if you file yourself.

Where did u read that? My instinct would be that you can for sure deduct MF and maybe even amortize initial purchase.

 

[GoingSince1990]

Yes, it is of course taxable income and yes, you can deduct the maintenance fees (except for the capital reserve portion) and also depreciation, and mortgage interest if the points are financed. I have seen people say “David’s is in Canada, doesn’t tell the IRS, so I don’t need to report it” but you never know, maybe one day the IRS will get David’s to turn over all of its records and come after the tax scofflaws.

 

[_auroraborealis_]

PayPal has always needed things like SSN. They really don't want to be a conduit for money laundering.

 

[eticketplease]

https://www.aol.com/finance/irs-ditches-tax-requirement-caused-160527535.html

IRS is delaying for Tax Year 2022, but expect it in TY 2023. They still need your tax ID number though.

Thanks I had not seen the update where they were delaying the form until next year.

 

[eticketplease]

Yes, it is of course taxable income and yes, you can deduct the maintenance fees (except for the capital reserve portion) and also depreciation, and mortgage interest if the points are financed. I have seen people say “David’s is in Canada, doesn’t tell the IRS, so I don’t need to report it” but you never know, maybe one day the IRS will get David’s to turn over all of its records and come after the tax scofflaws.

Yes I thought you could deduct the MF as well for the points you were actually renting.

I have no first hand experience with this as I always find that we need more points

 

[Nursemanit]

Yes, it is of course taxable income and yes, you can deduct the maintenance fees (except for the capital reserve portion) and also depreciation, and mortgage interest if the points are financed. I have seen people say “David’s is in Canada, doesn’t tell the IRS, so I don’t need to report it” but you never know, maybe one day the IRS will get David’s to turn over all of its records and come after the tax scofflaws.

Davids actively pushed how they pay by paper check and no 1099 when I was looking at rental places. They will get caught and of course, the people who use them will pay the price plus interest and fines.

 

[Brian Noble]

“I don’t have to report it because no one will catch me” is certainly one tax filing strategy.

 

[Best Aunt]

Davids actively pushed how they pay by paper check and no 1099 when I was looking at rental places. They will get caught and of course, the people who use them will pay the price plus interest and fines.

Confused. David's pays by Paypal. (Maybe getting a check is an option, but certainly not the only option.)

If you use them, you can report the income on your tax returns even if they did not send you a 1099.

 

[AstroBlasters]

Yes, it is of course taxable income and yes, you can deduct the maintenance fees (except for the capital reserve portion) and also depreciation, and mortgage interest if the points are financed. I have seen people say “David’s is in Canada, doesn’t tell the IRS, so I don’t need to report it” but you never know, maybe one day the IRS will get David’s to turn over all of its records and come after the tax scofflaws.

You depreciate your DVC on your taxes as an active or mixed use rental? TurboTax or through a CPA?

 

[tom1944]

You depreciate your DVC on your taxes as an active or mixed use rental? TurboTax or through a CPA?

Can you deduct your travel costs for the trip you take to oversee your rental property?

 

[AstroBlasters]

Can you deduct your travel costs for the trip you take to oversee your rental property?

You’d have to ask your CPA.