I don't understand the fine print on using points for a DVC Cruise - Help!

[salmoneous]

With regard to the tax question, you would technically have the same tax consequese if you traded the points for a cruise as if you sold the points. Any transaction when one thing of value is exchanged for another of value, (ie those "barter" companies found that out) is reportable as income. However, with regard to selling points for cash/check, you would have to do a tax analysis of the cost of the points vs the selling price. YOu would only have to report the difference. In most cases, you lose money over the short term if you include the purchase price of the points from Disney. Your accountant would probably give a better explanation.

My accountant wouldn't just give a "better" explanation, he'd give a different answer

All income must be reported on your income taxes, including any money received for a DVC-rental. You may then be able to offset some of that income with expenses. Note that you can't count the full purchase price as an expense. Then there are the local taxes to consider.

Using points for an option within the program wouldn't be a trade, with any sort of tax implications.

I do agree that using points for a cruise is poor option for most people. I just don't agree that nobody should use points for a cruise because it's a horrible financial transaction.

 

[dzorn]

The $75 fee is per call. I booked two reservation but it was completed in one call and were linked for our party that needed needed two cabins. We also got a discount on the party members we were paying cash for. Probably not the best use of points but we had double developer points to use.

Denise in MI

 

[epicureangirl]

In general, it is a bad financial move to use points for anything other than a DVC resort.

Yes, I have already read that and did the math to come up with $7 (and a bit) per point for the cruise. However, we were already considering a DVC cruise for next year and now that we're buying DVC with loaded points it makes sense to use some for a cruise (pay for the kids probably) and leave the rest for our home resort so we can do a cruise/land vacation. I also don't want to pay out of pocket for the cruise when I'm already making a big ticket purchase this year. I could see if I have the time and desire to do a point transfer to a member to come up with some of the money, but wouldn't want the hassle with renting reservations. I'll definitely consider it though. Thanks!

 

[tjkraz]

I forgot to mention that there is a $75 NON_REFUNDABLE transaction fee per DCL exchange.

And it becomes $95 on 1/1/08 since DVC is doing us the favor of standardizing the fees.

 

[Dean]

The $75 fee is per call. I booked two reservation but it was completed in one call and were linked for our party that needed needed two cabins. We also got a discount on the party members we were paying cash for. Probably not the best use of points but we had double developer points to use.

Denise in MI

My understanding is it is supposed to be per cabin so you got a break it appears. Per the Member Guidebook rules

DVC Members will be charged a non-refundable $95.00 transaction fee per Adventurer Collection or Concierge Collection confirmed exchange or a non-refundable $75.00 transaction fee per ABD or DCL confirmed exchange, which is payable at the time of confirmation.

Each cabin is a separate reservation. As noted, the fee will go to $95 in 2008. And ANY change such as a substituting a different person in the cabin is a new charge.

 

[simzac]

We reserved 2 Cat 11 rooms for our upcoming cruise in January. We only paid one $75 fee, MS said since I reserved both rooms at the same time I only had to pay once. And as far as using points for cruises being a bad decision, that isn't always true. 2 Cat 11 staterooms cost us 268 points. The same rooms are being reserved for cash at $1604 per room, so I feel as though I broke even compared to cash and didn't have to deal with renting my points.

 

[Dean]

We reserved 2 Cat 11 rooms for our upcoming cruise in January. We only paid one $75 fee, MS said since I reserved both rooms at the same time I only had to pay once. And as far as using points for cruises being a bad decision, that isn't always true. 2 Cat 11 staterooms cost us 268 points. The same rooms are being reserved for cash at $1604 per room, so I feel as though I broke even compared to cash and didn't have to deal with renting my points.

The current cash price for the first weekend would be less than $1500 inclusive of all taxes but without trip insurance. All other weekends in Jan would be around $1000 per cabin or less for 2 adults. And all of that is giving up any potential early booking discounts by reserving later. The one issue that does even the playing field for shorter lead time reservations is the length of time till the cruise. One of the other negatives to using points (or points plus cash) is reserving ahead and having so much risk if something happens compared to cash reservations where you only pay a deposit and can cancel for a full refund up until the last couple of months.

 

[gblast123]

First, I have been on 2 DCL cruises, both were wonderful and I plan on going on a few more this year. BUT, I paid cash for them, since the DVC point exchange was so pitiful.

Dean is correct. Take a look at www.vacationstogo.com. They indicate DCL prices of $880 per cabin for the January inside cabin prices (except for Jan 3, which is more points anyway). Total for two cabins is $1760. If you subtract the $75 exchange fee, for 268 points, you are getting roughly $6.30 per point.


It gets worse. When you book using DVC points, they are converted into Reservation points. Even if you cancel, you still only have reservation points!!! You can only use them for the Disney Collection, ie. DCL, and the other things like adventerer, etc. You cannot use them for DVC anymore.

DVC points are best used for DVC and nothing else. When you exchange them for DCL, adventurer, etc, you are getting very little in comparison with selling your points on disboards.