Financial Tracking

[Gwydion]

Okay, quick accounting question as a new member, how do you list your DVC ownership on a personal financial? Do you take it at present point value and just make an occasional adjustment do to price fluxuation? Or do you depreciate it at a specific rate since it has a definite expiration date?
Is there an accountant in the house? Preferably one whose brain is still intact after last week.

 

[Dean]

I'm not an accountant but I'd do it like you would a second home. List it as an asset with the value based loosely on resale price or new purchase depending on your preferences. Then if you have a loan, list that as a debt. The reality is that you probably don't have to list it at all if you don't want other than if you have a loan, you may need to list it as a liability for loan purposes.

 

[JimMIA]

Okay, quick accounting question as a new member, how do you list your DVC ownership on a personal financial? Do you take it at present point value and just make an occasional adjustment do to price fluxuation? Or do you depreciate it at a specific rate since it has a definite expiration date?
Is there an accountant in the house? Preferably one whose brain is still intact after last week.

The answer to this, of course, depends.

Generally, you list an asset at the lower of cost or market value. That, by definition, gives a conservative valuation allowing for a decline in the value of the asset, because you would only adjust downward from the cost.

Whether you depreciate or not - and if so, by what method - is a question for your personal tax advisor. The answer may depend on how the asset is titled, what it is used for, the tax structure and tax laws where you live, and many other factors.

If you are using your personal financial statement to support a loan application, don't be surprised if the bank heavily discounts the value of the DVC ownership. They may even count it as zero. Bankers will take a conservative view of the worth of any timeshare, because most of them fall in value very quickly and sharply.