I'm drawing a blank....

[kristenrice]

...is financing an add-on through DVC considered a "mortgage"? Particularly, is the interest tax-deductible? We (like a lot of people) don't have enough equity in our home anymore to take out a HELOC, which I know has deductible interest. I was just wondering how it works with the DVC loans.

I am trying to talk DH into an add-on at HHI but I want to make sure that I have all the numbers and facts straight. The closer it gets to hunting season, the more he has South Carolina whitetails on the brain and I want to take advantage of that.

Thanks!

 

[Dee77]

We financed an add-on through DVC and the interest is tax deductable. Good luck!!

 

[Greysword]

Yes, you should get a 1099 to file with your taxes (I think that is the form, we use an accountant now [due to the tax-free military stuff that is complicated] and I've been out of the tax loop for a couple years).

The interest rate is likely to be a bit higher with Disney, but there is no closing costs and the transaction does not effect your credit (unlike with a HELOC).

 

[A_Princess'_Daddy]

Yes, you should get a 1099 to file with your taxes (I think that is the form, we use an accountant now [due to the tax-free military stuff that is complicated] and I've been out of the tax loop for a couple years).

It's actually a 1098 (oh the pesky IRS and their form numbers; if you get a 1099 from DVC, it means you get to PAY the IRS because DVC is claiming that it paid you income, interest or dividends!!! ).

But yes, as others have said, the interest, as well as the portion of the dues allocated to property taxes, are deductible on your taxes, subject to the traditional limitations that most people don't need to worry about. It's not a huge savings, but it reduces the effective interest rate slightly for those who finance.

 

[KathyK]

Yes. We get a form from DVC each year, and deduct the interest along with our regular mortgage interest.

 

[HHSTigerFan]

Is financing an add on the same as financing an initial purchase???

 

[disneynutz]

Is financing an add on the same as financing an initial purchase???

Yep!

Bill

 

[Crystal_27]

It's actually a 1098 (oh the pesky IRS and their form numbers; if you get a 1099 from DVC, it means you get to PAY the IRS because DVC is claiming that it paid you income, interest or dividends!!! ).

I actually received a 1099 from Disney one year because I won $10,000 in a radio contest here in Atlanta, and I guess the radio station was owned by Disney. It was very cool getting a check from the Mouse (although paying the taxes...not so much)!

 

[A_Princess'_Daddy]

I actually received a 1099 from Disney one year because I won $10,000 in a radio contest here in Atlanta, and I guess the radio station was owned by Disney. It was very cool getting a check from the Mouse (although paying the taxes...not so much)!

Very cool! Congrats!

And it's nice to get a 1099 when you actually get money...Or as nice as any tax form can be, I suppose.

 

[kristenrice]

Oh, this is great news!

Thanks!

One more clarification, to make sure I have my ducks in a row...

We have a Feb UY so ideally, we would want to add on in December, right? This way, we would still get 2010 UY points and only pay 1/12 of 2010's MF's, correct? Or, if we wait until January 2011, would we get the 2010 points without any MF's?

 

[5forDiz]

Oh, this is great news!

Thanks!

One more clarification, to make sure I have my ducks in a row...

We have a Feb UY so ideally, we would want to add on in December, right? This way, we would still get 2010 UY points and only pay 1/12 of 2010's MF's, correct? Or, if we wait until January 2011, would we get the 2010 points without any MF's?

MFs are pro-rated based upon when you purchase; yes you would pay less on 2010UY MFs purchasing Jan 2011 and can still be eligible for 2010 Use Year points.

 

[Greysword]

I actually received a 1099 from Disney one year because I won $10,000 in a radio contest here in Atlanta, and I guess the radio station was owned by Disney. It was very cool getting a check from the Mouse (although paying the taxes...not so much)!

You should have asked for Disney Dollars, then. I'm sure Disney will retrieve some (if not all) of the winnings, anyway.