<font face="times" size="+0">Maistre Gracey, I did think about adding that option in the poll (that people don't report it or intend to amend their returns), but I didn't really feel comfortable asking people to say so, even if in an anonymous poll.
If it wasn't clear, personally I did make every effort to look into this before I completed my tax returns. My tax situation other than this is quite simple, so for now I do not use a tax advisor. I also had a suspicion that this area of tax law is very complex, and not that many advisors would necessarily have expertise in the area. In any case, I took the most conservative approach to my
DVC rental income, and only deducted the few expenses that were specifically mentioned in the IRS publications as deductible. (For example, I'm not so sure you can deduct Property Taxes for rental purposes if you already deducted it on Schedule A. Also, the portion of our annual dues that applies to Capital Improvements is NOT deductible except as part of the adjusted cost basis that you use to figure your depreciation expenses - which BTW as I understand it, should be calculated using the MACRS 27.5 years method... it ends up being a very small number. Not what you would think...) Also, the mention of deducting travel expenses... I don't really believe any DVC owners could truly claim that they fly down to Orlando just for the purposes of facilitating a DVC rental.
IRS Publications 527, 946, 551 contain detailed info (pretty difficult to fully understand though, just like all IRS publications
). The Instructions for Form 4562, and for the 1040 Schedule E are also useful.
I also found the following two threads on the TUG very helpful:
http://www.tug1.net/tugbbs1/Forum1/HTML/004381.html
http://www.tug1.net/tugbbs1/Forum1/HTML/005921.html
BTW, I would argue that unless you stay at DVC more than 36 days a year, it's not possible to claim DVC as a "Dwelling Unit Used as Home" because the definition in Pub 527 is that you must use DVC for personal purposes for more than the GREATER of 1) 14 days, or 2) 10% of the total days it is rented to others at a fair rental price. Since DVD rents out DVC units to the cash paying public all the time, I would guess that at least one DVC room is rented out every day of the year. 10% of that would be 36.5 days. Just some food for thought. I am definitely no tax expert, but for those who plan to discuss this with a tax advisor next year, you could bring some of this info to them.
Oh, and unless you are a business, you can't have a loss of income from renting DVC. Anyway, that's enough of my foray into tax accounting.
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