For anyone that has sold DVC

[Jfine]

Thank you so much!! This was so helpful! This was the first I've heard of this, so I was probably more panicked than necessary. It looks like our gain won't be as much as I was initially thinking, but we'll talk with our accountant and see for sure.

 

[Dean]

dean and supersnoop are suggesting above that certain "capital improvements" included in our annual dues (i.e. not *all* of our annual dues would qualify) might also qualify to increase your basis and lower your overall taxable gain. that seems aggressive to me, but I have not looked into it - it's up to you and your CPA whether you think it's defensible.

To clarify, I personally don't hold that opinion, I know Dave M did. I too feel it's overly aggressive and risky for 2 reasons. It really isn't normally used for improvements but simply for maintenance which is different for a timeshare than for a home. And second that the IRS is pretty negative to timeshares in general and one is inviting an audit. I'm all about taking appropriate deductions and taking the chance but this crosses over that line for me personally. I think one could reasonably argue the capital reserves would be deductible but I see it as a gray area. OTOH, I do feel that special assessments could easily be deducted from any gain.