DVC taxes and Federal tax return

[MarylandMommy]

Has anyone declared the taxes part of their DVC annual dues on their tax return? If so, how? Anyone from Maryland declare it on their state return?
Thanks!
Lisa

 

[CarolA]

I take the portion indicated as property taxes on my federal return. I just add up all the property taxes paid on my DVC and my home and put it in the correct spot on the form. I do not take anything on my GA return as GA only allows you to deduct property taxes paid in GA (which is generally true)

 

[jimh13432]

ditto

 

[MarylandMommy]

Thank you so much for you information!!!!!

 

[cobbler]

Dumb question I am sure BUT -
What about the extra payment from what was estimated to what was actual? Do you put that in the year that they were actually paid or the year that they were for?

I am having a blonde moment.

 

[Dsnybob]

IRS Publication 17 indicates that cash basis taxpayers (most individuals) can only deduct real estate taxes actually paid during the calendar year. Additionally, when describing escrow arrangements (as with mortgage companies and to some extent, the arrangement we have with DVMC), the publication points out that only those taxes actually paid by the escrow agent (third-party) can be deducted (Form 1098 issued by mortgage companies usually reflects this amount - I'm not sure if 1098's issued by DVC reflect this information since the finance arm does not actually escrow the funds, the management company does).

Additionally, and as far as I know, DVC does not disclose the exact amount of the tax payment made for each member, but includes a true up adjustment in January of each year for the prior tax year.

For 2006, I would think the method that would most approximate real estate taxes paid for the year would be the 2005 estimate to actual adjustment made in January 2006 and all estimated 2006 taxes paid with 2006 dues.

Of course, this is not be construed as tax advice and you are advised to discuss this issue with your personal tax advisor.

 

[MarylandMommy]

I'm not sure if I understood everything DsnyBob said, but when I went to the member site, I clicked on annual dues. It has estimated tax of $170 (which I paid when I closed on my resale in May 2006) and the actual tax of $173 (which added $3 to my annual dues for this year). I will add $173 to my home's property tax on my federal form.
I think I understand now. Thanks for all the help!

 

[tor]

I used this years estimate plus the balance from last year actual - estimated

 

[Doctor P]

IRS Publication 17 indicates that cash basis taxpayers (most individuals) can only deduct real estate taxes actually paid during the calendar year. Additionally, when describing escrow arrangements (as with mortgage companies and to some extent, the arrangement we have with DVMC), the publication points out that only those taxes actually paid by the escrow agent (third-party) can be deducted (Form 1098 issued by mortgage companies usually reflects this amount - I'm not sure if 1098's issued by DVC reflect this information since the finance arm does not actually escrow the funds, the management company does).

Additionally, and as far as I know, DVC does not disclose the exact amount of the tax payment made for each member, but includes a true up adjustment in January of each year for the prior tax year.

For 2006, I would think the method that would most approximate real estate taxes paid for the year would be the 2005 estimate to actual adjustment made in January 2006 and all estimated 2006 taxes paid with 2006 dues.

Of course, this is not be construed as tax advice and you are advised to discuss this issue with your personal tax advisor.

1098's from Disney only go to those who financed through Disney and are only for the interest paid. Disney DOES disclose on your annual dues bill each year the actual amount of property taxes paid by you for the previous year which would be the current tax year and the information that you need.

 

[ChesapeakeTechie]

Are the tax rates fairly steady or have they been going up significantly?

 

[abk96]

Here's a dumb question since I'm having trouble following this whole thing. Do you mean the property taxes that were paid last year or this month? I'm confused because on the form I just received it says 2007 and last years says 2006.

Sorry I'm having a daaaaa moment.