Foreign owner tax forms..?

[Madame]

On FB today & a Canadian DVC owner mentioned they can't rent their points out b/c they didn't fill out the foreign owner tax forms. Can anyone fill me in? I doubt we'll ever rent out our points, but this would be good to know.

 

[LisaS]

Just a guess but a recent thread here mentioned that one of the of US-based rental brokers is issuing 1099s to members who rented out their points through them. A 1099 is a form that the US Internal Revenue Service requires someone to issue to any person to whom they have paid at least $600 for various things (rentals, services, etc). In order for the broker to issue a 1099, they need the US-based members to fill out a form supplying their tax ID information. Perhaps the form mentioned on FB is what this broker requires from members based outside the US? Again, just a guess.

 

[Madame]

Just a guess but a recent thread here mentioned that one of the of US-based rental brokers is issuing 1099s to members who rented out their points through them. A 1099 is a form that the US Internal Revenue Service requires someone to issue to any person to whom they have paid at least $600 for various things (rentals, services, etc). In order for the broker to issue a 1099, they need the US-based members to fill out a form supplying their tax ID information. Perhaps the form mentioned on FB is what this broker requires from members based outside the US? Again, just a guess.

That would make sense. I just got the sense that this was a one-time form, otherwise why not fill the form out now & rent out your points.

 

[mort1331]

Or use Daves which is Canadian based and a supporter of this site. You are renting to a Canadian middleman, he is paying you in US funds and no forms needed.

 

[Madame]

Or use Daves which is Canadian based and a supporter of this site. You are renting to a Canadian middleman, he is paying you in US funds and no forms needed.

Thanks! I did think about Daves and am the type to declare all income no matter how insignificant, however, I really wouldn't want to have to jump through hoops to rent out points.

 

[pangyal]

The form the broker in question needs from Canadians in order to continue renting our points is actually a number- an ITIN number. It's a bit of an arduous process to get one, but if you want to keep renting points with this broker and/or want to avoid unnecessary hurdles if you ever sell your DVC, it seems like a very worthwhile investment of time to get it.

We actually got our ITIN numbers as an add-on of sorts to a contract we bought last year, as our sellers were also Canadian and our broker convinced the person in charge of getting their numbers to do ours as well, at no charge .

 

[Madame]

The form the broker in question needs from Canadians in order to continue renting our points is actually a number- an ITIN number. It's a bit of an arduous process to get one, but if you want to keep renting points with this broker and/or want to avoid unnecessary hurdles if you ever sell your DVC, it seems like a very worthwhile investment of time to get it.

We actually got our ITIN numbers as an add-on of sorts to a contract we bought last year, as our sellers were also Canadian and our broker convinced the person in charge of getting their numbers to do ours as well, at no charge .

Thanks! I was assuming it was this. I was doing some digging & stumbled across ITIN when reading about foreign sellers. So basically it's a foreign SSN for claiming rental income & recouping the 10% withheld for the IRS when you're a foreign seller right? Do you know if all rental brokers are now requiring this # or just this one?

 

[mort1331]

not sure about the renting part, but the 10% is now up to 15%

 

[pangyal]

Thanks! I was assuming it was this. I was doing some digging & stumbled across ITIN when reading about foreign sellers. So basically it's a foreign SSN for claiming rental income & recouping the 10% withheld for the IRS when you're a foreign seller right? Do you know if all rental brokers are now requiring this # or just this one?

David's is Canadian, so no on that one

 

[Canadian Disney Mom]

I am a Canadian owner and I have rented points out several times and I have never used such a form. I do it on my own though without a broker. Mind you, I only have 400 pts total and never rent them all, so we are not talking huge amounts.