EBAY Disney vero beach #150069427709

[tor]

I don't see a waiver of ROFR because the charity gets its money regardless so there is no mess or bad press either way.

 

[kdzgon]

There's no way Mattnday is going to get a deduction out of this. You have to deduct the market value of goods or services received before you can claim a deduction. Even if I go to a charity diiner at $50/pop, I have to deduct the market value of the dinner and then can claim the balance as a deductible donation. The original owner, of course, would get a deduction.

I think you missed my point. The scenario proposed was supposed to avoid ROFR by avoiding a classification as a "sale". In order to do so, Mattnday would have to make an unencumbered "donation" (payment) to the charity. If he did that, he would indeed be entitled to a charitable deduction (assuming sufficient income, etc). IF he were promised something material in exchange for this payment, he would only get a deduction for the amount (if any) above and beyond the market value of the item(s) received. However, if he made the payment specifically in exchange for the DVC deed I believe that would classify the transaction as a "sale", thus (once again) making it subject to ROFR. Also, donating a timeshare entails very specific (and different) rules for deductibility than the donor of a dinner. The original owner may or may not get a deduction, but the odds are very good that the deduction may not be exactly equal to Mattnday's purchase price.

Anyway, I was not claiming that the current transaction would result in a deduction for Mattnday, but rather I was pointing out the pitfalls of the proposed scenario as presented by a prior poster.

 

[mattnday]

We are still tap dancing very lightly on this transaction. However, we have a contract written up that is going foward to Disney for ROFR. I am still not convinced the unit has been conveyed to the charity properly. However, I think Disney might take the unit either way once the proper ROFR process begins as I too feel that $59/60 is the current threshold.. I am curious as to what might happen on Disney's end if the unit does not has not been transferred to the charity properly. The seller has indicated that they have contacted Disney and submitted the deed paperwork and their charitable status . He has indicated that Disney will not stand in the way of that transaction.

We shall soon see................

 

[DisDaydreamer]

Good Luck

 

[mydogdrew]

I think you missed my point. The scenario proposed was supposed to avoid ROFR by avoiding a classification as a "sale". In order to do so, Mattnday would have to make an unencumbered "donation" (payment) to the charity. If he did that, he would indeed be entitled to a charitable deduction (assuming sufficient income, etc). IF he were promised something material in exchange for this payment, he would only get a deduction for the amount (if any) above and beyond the market value of the item(s) received. However, if he made the payment specifically in exchange for the DVC deed I believe that would classify the transaction as a "sale", thus (once again) making it subject to ROFR. Also, donating a timeshare entails very specific (and different) rules for deductibility than the donor of a dinner. The original owner may or may not get a deduction, but the odds are very good that the deduction may not be exactly equal to Mattnday's purchase price.

Anyway, I was not claiming that the current transaction would result in a deduction for Mattnday, but rather I was pointing out the pitfalls of the proposed scenario as presented by a prior poster.

I can't imagine a contract for this transaction that does not express very clearly that the "donation" to the non-profit would be contingent upon delivery of the DVC deed. Failure to document would put the entire transaction at risk. If the donation is deducted then the FMV of the property received is certainly ordinary income (in fact, arguably more than the donation itself). Aside from being a good deal if Disney passes on the ROFR, there is no additional tax angle for the transaction.

 

[kdzgon]

I can't imagine a contract for this transaction that does not express very clearly that the "donation" to the non-profit would be contingent upon delivery of the DVC deed. Failure to document would put the entire transaction at risk. If the donation is deducted then the FMV of the property received is certainly ordinary income (in fact, arguably more than the donation itself). Aside from being a good deal if Disney passes on the ROFR, there is no additional tax angle for the transaction.

I totally agree, but then I never proposed a transaction without such a contract. I'm not sure I agree that the FMV would be ordinary income (as opposed to a gift), but that isn't really the issue. In my original post I was just trying to point out the totally unworkable nature of the proposed scenario - nothing more, nothing less.

 

[paeskie]

This continues to be a fascinating thread, with completely new angles on our legal and tax responsibilities.
I can't wait to see what happens.

 

[Dean]

As I understand it there are situations where DVC's hands are tied. A few years ago I bought a BWV contract that was clearly below the ROFR price. Enough below that one of the resellers just had to find out why and contacted DVC about it. I'm not sure I recall the exact issue but it was something like a conflict of interest where DVC was in foreclosure or something to that effect. That's one of the reasons I mentioned previously that I wouldn't be surprised if this went through. I too think it's more likely not but unlike many, I won't at all be surprised it DVC waives ROFR on this one.

Of course there are other issues as either the TRUE owners will have to sign the new deed OR there will actually have to be two sets of ROFR and possibly two recordings.

 

[mattnday]

The deed has now been verified to be in the name of The Christopher Foundation and ROFR has been or will be submitted to DVC in the next day or so. It turns out the week was deeded to them from the estate of a deceased individual. According to the tax records for Indian River County everything is OK. Now the only question is wether or not DVC recognizes them as the owner. Either way ROFR paperwork should clarify ownership and we should all know the outcome before too long.

 

[CRSNDSNY]

I hope it goes through for you.

 

[ppiew]

Any more info on this deal?

 

[3DisneyKids]

Keeping my fingers crossed for you. Thanks for keeping us posted....

 

[Kickapoo Joie Juice]

I was away at a family party when the auction ended and I lost, by about $700.00! (Phew, that was too close).

So I won't be able to tell you if it passes ROFR. At $50.00pp it was about as far as I would go, as I purchased a VB contract throught TSS (Where I know everything is above board) *WITH* banked points for $59pp (tha *DID* pass ROFR), so once we crossed the $50.00 mark, this contract with only current UY points, lost a lot of its draw.

However, I did email the winner, congratulating them, and asking them if they would let me know if Disney exercises ROFR, so stay tuned!

-Tony

This is better than watching "Lost"...

What had happened if you had won, paid the seller, and then been told by the seller that Disney had RoFR'ed you, and then you'd have to try and get your money back from him?

Wow, Mattnday, with great risk comes great reward-or heartbreak! I hope you get the contract-but my question is, have you paid the seller?

 

[mattnday]

There is no way I will send even a dime to the seller until I have the ROFR back from DVC. At that point I will call DVC to verify their consent on the previous ownership change and make sure the ROFR was approved with the new owner. From there I will be spending the extra cash on an escrow agency to at least handle the money if not the deed work.

Honestly, the seller has excellent feedback (100%) and I have contacted a few references from his feedback. They are above board. It is just a matter of sorting out the logistics and seeing what Disney says now.

 

[ACDSNY]

Mattnday - Hope everything works out for you neighbor! Sounds like you're taking all the right precautions.

 

[byoung]

Mattnday, hope it turns out well.

 

[TenThousandVolts]

I am on pins and needles waiting to hear about rofr- good luck mattnday!

 

[JWimberley]

I was also one of the bidders on this auction. I hadn't checked back in a while and I'm glad to see that one of our own was the winner and that we are going to get to hear the end of the story so to speak.

Congrats and best of luck!

Joshua

 

[DisDaydreamer]

I am on pins and needles waiting to hear about rofr- good luck mattnday!

At ten thousand volts... I would imagine you're always on pins and needles.

 

[rphjr]

//http://www.clerk.indian-river.org/Records/TiffToPDF.aspx

http://www.clerk.indian-river.org/Records/TiffToPDF.aspx

I found this thread fascinating. You can look at the original deed and ownership changed recorded by Indian River County. The link takes with to the court records. I'm waiting to hear how this all finally turns out.