Income Taxes

[donkortajr]

How do DVC Memberships get reported on Federal Income Taxes?
We purchased BLT in October, and just made the first payment on our loan in December.

Thx in advance,
Don

 

[erionm]

Depending on your tax situation, you may be able to deduct mortgage interest (if Disney financed) and/or the Property Tax portion of your annual dues.

If you financed with Disney, they will send you a mortage interest form to use when doing your taxes. Property taxes will have to taken from the annual statement mailed each year. They do not mail any other document for property taxes.

As always, you should consult a qualified tax professional.

 

[TINKERIFIC]

The previous poster is correct. The items to consider for your federal income tax return are property tax portion of dues and mortgage interest on the Disney loan. The Disney financed loan is structured so that interest paid each year is considered mortage interest much like your own home mortgage interest. If it is a non-Disney financed loan, then you need to find out from your tax professional because it depends on how it is structured. Both the interest (if applicable) and property tax portion of your dues will be reported on Schedule A of your return. If you always itemize (schedule A larger than standard deduction) then they are truely deductible. Otherwise, it is your standard deduction which counts. May be a bit confusing, sorry. It is the CPA in me coming out.

 

[Disney Spaz]

Can I ad a question? If you fincanced add ons and made them seperate contracts can you include the interest on both contracts or just one of the financed contracts?

 

[TINKERIFIC]

I do no think it would matter, but if you financed through Disney, check with them on how the contract was structured. I am assuming all of their contracts are structured the same so in that case it would not matter how many add-ons you have. The key is how is the financing contract structured...mortgage, personal, etc.

 

[Disney Spaz]

Thanks so much TINKERIFIC. All were structured as mortgages but a co-worker said he heard you could onld use one second mortgage when you do your taxes and since I have 3 seperate add on contracts I would only be able to use one. I thought this sounded a little funny.

 

[TINKERIFIC]

Check with your tax professional. I am not sure about that limit. I know just enough about personal income tax to scratch the surface. My main focus is corporate...although they are both taxes, they are apples and oranges.

 

[CarolA]

Can I ad a question? If you fincanced add ons and made them seperate contracts can you include the interest on both contracts or just one of the financed contracts?

This comes up every now and then. I did some research for a friend and really could NOT find a good response on the IRS website etc.... So it's really a call between you and your tax professional. My gut feeling is that most folks deduct both, but I have no idea how the IRS thinks it would work. (I am not a tax accountant so I didn't try to hunt up tax law cases when I did my research, there might be something there if anyone has nothing better to do with the rest of thier life! )

 

[Disney Spaz]

Thanks so much to both of you, TINKERIFIC and CarolA. In my house my dad is the tax go to guy but this had him stumpted. He was certified as a CPA, but never actually practiced the trade, when I was little so his info is a little outdated.