Evidence by what? Your opinion? Both statues apply and there’s nothing written that says otherwise.I have no idea what happens if a statue conflicts itselfbut it does appear that 718 “has left the chat”
Not the entire chapter of 718, the subsection that specifically prohibits managing entities from placing restrictions on condominium owners right to rent without the owners agreeing to the changes. I don’t recall the number. (It’s just saying “you cannot restrict me without consent”)
There is nothing in that section that that states it excludes timeshare condominiums
I have no idea whether DVC would bother to do this or not, but it would be done by AI. In theory, it (AI) could constantly crawl around the data related to frequent bookers or flagged accounts looking for, well, anything it wanted. One human could monitor the whole thing and evaluate the results to decide whether further action was warranted.
Simply dividing the total available points by the total owners put it between 2000 to 300 per owner as an average. So I do disagree with. that part of your opinion.
It’s not excluding, it’s superseded by the duty of the managing entity in 721 to protect the rights of the membership as a whole in regard to the use and enjoyment of the facilities.
You don't even need to scan anything to get back in to the United States after a closed loop cruise, or from anywhere if you have Global Entry. I think it's a valid assumption such technology will be available for many such purposes.
Let's play devil's advocate. Not reporting rental income and paying associated taxes would not make it non-commercial. So I would say whether you properly report the income is inconsequential as to whether DVC deems the usage of the ownership a commercial purpose.
That’s an Olympic size stretch. I would rely on the 721 stated requirement that any rental restrictions be specified over any interpretation like that.
- sure Jan
I would say not necessarily. You have to pay taxes on all income, not just ‘commercial’ income. I would say not paying tax on rental income would be much worse. I’d rather be in trouble with Disney than the IRS.
In general, just creating an LLC to purchase points kinda of smacks of a business. Which is why they specifically restricted Llc’s on who could be listed on the reservation.
Oh absolutely. I think the problem is that some trusts are set up as LLCs which means it’s harder to do an outright blanket ban on them. And yes trusts can be a good estate planning tool, but I’m not sure that they’re a great tool for owning a timeshare. Might be a good way to “set it and forget it” by placing $50k or so in the trust alongside the contract and have the interest/dividends off the cash as a way to pay the dues, but I’m sure there’s better ways of handling it.
When I did my estate planning and we went through all the options and tax implications. We came up with the same conclusion. The only benefit to a trust is that the terms are kept private unlike a will. The negatives are continual paperwork and the trust would make it more difficult ( but not impossible) for my heirs to just reject the timeshares if for some reason they were at a negative value.
Nope. If you rent out 50 of your points once every 10 years, you still need to report and pay tax on that income. Taxation has nothing to do with any of this.
I spent about a half hour internally debating the value of placing the DVC points in a trust, and decided it was way too much effort for too little benefit.
This is just a question that I don't know the answer to. I would assume that the rental companies 1099 renters after a certain dollar figure is reached, right? If so, the main people in this group would be the social media (i.e. Facebook) renters?
