Financing and Tax question

[ALWEASEL]

Hello All.
I was wondering does DVC count as property?
Can i get a mortgage on a dvc?
And can i deduct it on my taxes like a home?
Just wondering.
Im thinking of buying in and will probably go resale since i want boardwalk cause its close to epcot.

Thanks much, I appreicate all your help.
This group is great.
ALWEASEL

 

[browniemtb]

I was wondering does DVC count as property?

Not sure.....DVC is sort of a lease share...not real property ownership since there is an experation date.

Can i get a mortgage on a dvc?

No....you can get a loan from Disney or others or even use home equity.

And can i deduct it on my taxes like a home?

If you used a home equity loan you could.....I'm really not sure if you finance through Disney though.

Im thinking of buying in and will probably go resale since i want boardwalk cause its close to epcot.

BWV can be purchased through resale or through Disney even though its a sold out resort. You may have to wait a bit though....

 

[epaul89]

A portion of your dues contain property taxes. This portion of your dues can be deducted on you income tax return.

 

[JimMIA]

The correct answer is...you should contact a tax professional for an answer to that question.

As stated, there is a portion of your dues which is ad valorum (real estate) tax paid to Orange County, Florida. When you consider that the tax is only a portion of dues, and dues at most resorts are only about $5 per point, you realize you are talking about dozens of dollars, not thousands of dollars.

Also, if you use a home equity line to pay for DVC, the interest on that may be deductible.

But whether either of those possible deductions would be of any benefit to you is a question that only someone who knows your entire financial picture can really answer.

 

[ALWEASEL]

Thanks all.
I appreicate the help.
I figured it would just be a bonus to the deal.
Thanks all.
ALWEASEL

 

[Ooba]

The answer is... it depends. Yes, DVC is considered property (it is an ownership interest in the property), and as such, it is secured by a mortgage, if you finance through DVC (or other timeshare financing arrangement). Deductibility would depend on if you own more than one residence right now (vacation home etc) - as you can only take interest on your main residence, and one other. If in doubt, talk to your tax person - but yes, the interest and taxes are potentially deductible.