Existing Contract

[Dean]

resurrecting this thread....

I have two questions:

1) on the tax side of this -- in the case of you transferring a deed to someone gratuitous does a 1099 get generated by Disney or do you report this in some way on your taxes that you no longer own this property?

2) if you privately sell a contract (not gratuitous) and don't use a title company to prepare the sales contract, I assume you have some way of submitting the contract to Disney for their ROFR process. I guess you can get this information from Disney Administration?

TIA

No 1099 but you'd still have the requirement to file and pay taxes on any profit as defined by the IRS. You can do this directly, I think the forms and instructions are now on the member website.

If you transfer your deed to someone else as a gift, here is what happens:
If the value of the transfer is $15,000 or less there is no paperwork at all. (Gift tax-wise)
If the deed is in your name and a spouses name, you can each gift $15,000 per year per individual with no reporting.
If the gift is over $15,000 you have to file a gift tax return, which is an additional schedule on your 1040. The lifetime limit for gifts is 11.4MM for you and 11.4MM for your spouse. So your gift of the DVC deed will not cause any tax to be due. But you have to report it, because it gets deducted from your lifetime credit.

Also, even though no federal tax is due, you may owe state tax, depending on your state. See your accountant to verify the above and check out the impact in your state.

And as a gift if more than one name were added a couple could give say a couple 4 times the exclusion, $60K but it's also for the year in aggregate so if you gave them other items of value during the year it'd be additive.

 

[cmrdgrs]

Thanks Dean. For now, I don't think I have to worry about the gratuitous transfer. Since it was the start of the thread it just got my wheels turning in my brain.

I am however potentially going to sell one of my DVC contracts privately. I'll be making some phone calls this week and figuring out how much the closing costs would be. It's my HHI contract, so I'm going to call some Real Estate Attorneys in SC to price out having them hold escrow and prepare the closing documents. I'm planning to draw up the contact and submit to DVC for ROFR.

 

[Dean]

Thanks Dean. For now, I don't think I have to worry about the gratuitous transfer. Since it was the start of the thread it just got my wheels turning in my brain.

I am however potentially going to sell one of my DVC contracts privately. I'll be making some phone calls this week and figuring out how much the closing costs would be. It's my HHI contract, so I'm going to call some Real Estate Attorneys in SC to price out having them hold escrow and prepare the closing documents. I'm planning to draw up the contact and submit to DVC for ROFR.

I'd suggest LT transfers, it'll be a lot cheaper and they do a good job.

 

[cmrdgrs]

I'd suggest LT transfers, it'll be a lot cheaper and they do a good job.

Just looked at their website. They do seem very reasonable. Do you know if they can hold escrow? or do they only prepare documents for closing?

 

[Dean]

Just looked at their website. They do seem very reasonable. Do you know if they can hold escrow? or do they only prepare documents for closing?

I don't believe they'll do escrow or title insurance but you could check with them to see. They have quite a good reputation in the timeshare resale world.

 

[cmrdgrs]

I don't believe they'll do escrow or title insurance but you could check with them to see. They have quite a good reputation in the timeshare resale world.

I'll put them on my list to call tomorrow. Thank you for the resource. I appreciate it!

 

[Dean]

I'll put them on my list to call tomorrow. Thank you for the resource. I appreciate it!

Sure, always glad to help when I can.

 

[icydog]

Lttransfers.com is a privately owned Escrow, Title and Closing agent. I use them all the time including for the Old Key West contracts I gave to my son in 2018. I know I could have done it myself but my son wanted it done right and he paid for it. I always use them to close on my Marriott contracts and they always do escrow and will also do Title insurance.

 

[jkevinmcg]

Thank you all for the great advice and insight on how to do it yourself. Just mailed my 3 deeds today. I will update this thread as events take place.

 

[eMoneyBug]

I’m trying to transfer my Aulani contract to my sister. I’m having trouble completing the generic quitclaim form I found online as it’s asking the address where the new property tax forms should be sent too. I tried searching a recorded Hawaii Quitclaim deed but their search methods are very limited. Does anyone here have experience with transfer of Aulani property? TIA!

so were you able to DIY for your Aulani contract?

I was able to a few years ago for my Saratoga to add remarried wife and son and just last month my daughter reached 18 so added her to that same Saratoga contract, but I’m clueless on the Aulani and would like to DIY