International buyer interested in direct purchase

[Samfar]

Hi
Another buyer here who is interested in buying direct. We live in Bermuda .. tried calling Disney to make the purchase but they wouldn’t talk and give any info .. saying they are not registered in Bermuda

We wanted to make use of the current promotion - anyone has any clue how to go ahead for direct purchase (other than travelling to Orlando before 5 Dec .. no plan currently in the pipeline this month)
Thanks

 

[_auroraborealis_]

The only way is to travel to Orlando. They cannot sell to you internationally.

 

[Sandisw]

Unfortunately they can not sell to you except in person.

 

[Matty B13]

But you can buy a resale contract from your home country.

 

[RoseGold]

I would get local legal advice before you do this. You are opening yourself up to the IRS, and there are a lot of reasons that might be a bad idea.

At a minimum, you need a plan for if you pass. Leaving your heirs to track down international property lawyers and sort things with the IRS over a timeshare sounds like a legit nightmare. I wouldn't even know where to start if that happened to me. There are other ways to buy DVC, but this is where you need local legal advice.

 

[Samfar]

I would get local legal advice before you do this. You are opening yourself up to the IRS, and there are a lot of reasons that might be a bad idea.

At a minimum, you need a plan for if you pass. Leaving your heirs to track down international property lawyers and sort things with the IRS over a timeshare sounds like a legit nightmare. I wouldn't even know where to start if that happened to me. There are other ways to buy DVC, but this is where you need local legal advice.

Sorry I don’t understand. You mean buying direct would be an issue with IRS and resale is easier?
If I have mine, my husband and daughters name on deed.. I’m sure if one of us sadly passes away.. others will still have right over the deed?

 

[zavandor]

I would get local legal advice before you do this. You are opening yourself up to the IRS, and there are a lot of reasons that might be a bad idea.

At a minimum, you need a plan for if you pass. Leaving your heirs to track down international property lawyers and sort things with the IRS over a timeshare sounds like a legit nightmare. I wouldn't even know where to start if that happened to me. There are other ways to buy DVC, but this is where you need local legal advice.

When you buy from outside the US you don't deal with the IRS.
When you sell, you have to pay taxes on any possible profit. For this reason, a certain percentage (called FIRPTA) is kept automatically by the closing company, I think it's 15%. If you want to claim that back, because the taxes you have to pay on your profit should be lower or even null, then you have to deal with the IRS, open a sort of an account and show proof of purchase and sale so that the right anount of tax can be paid. Usually this is done with the help of a tax specialist, which may cost a few hundred $. So it may not be worth it, depending on contract size and profit.

 

[Samfar]

Oh ok that’s not a problem. I totally understand and respect the tax regulations. My husband is an accountant so that will make it a bit easy I guess . We are hoping to keep these for our kids as well.
And about renting.. if I have some excess points which I was not able to use.. and if I try to rent here on disboard or other rental brokers.. do I have to pay tax on that as well?

 

[zavandor]

Oh ok that’s not a problem. I totally understand and respect the tax regulations. My husband is an accountant so that will make it a bit easy I guess . We are hoping to keep these for our kids as well.
And about renting.. if I have some excess points which I was not able to use.. and if I try to rent here on disboard or other rental brokers.. do I have to pay tax on that as well?

Yes, but I doubt many do.

 

[RoseGold]

When you buy from outside the US you don't deal with the IRS.

Of course you deal with the IRS. If you own property in the US (which all DVC is), you deal with the IRS one way or another at some point. So buying DVC in any capacity requires being able to handle legal affairs in the US. Maybe OP is wealthy and this is no big deal and they already have a cadre of US lawyers to handle these things. But there are a lot of reasons non-US people might want to completely avoid the US tax/legal system.

I guess the exception would be buying a 2042, running out the clock on it, and not dying, selling, or renting out points. But even then you have a US property interest until it expires, which might not be a good thing.

Buying and selling as a foreigner is not as straightforward as it is for US citizens who already deal with the IRS.

As a foreigner, I would want to know how this would impact my heirs if I die. Heck, there are some horror stories on these boards having to probate just in another state. Because this is Florida property and it has to be probated in Florida with Florida courts and Florida lawyers. I would be getting local legal advice. None of us have any idea how to close an estate in OP's country with property interests abroad. It's OP who needs to know the answer to that question.

 

[zavandor]

Of course you deal with the IRS. If you own property in the US (which all DVC is), you deal with the IRS one way or another at some point. So buying DVC in any capacity requires being able to handle legal affairs in the US. Maybe OP is wealthy and this is no big deal and they already have a cadre of US lawyers to handle these things. But there are a lot of reasons non-US people might want to completely avoid the US tax/legal system.

I guess the exception would be buying a 2042, running out the clock on it, and not dying, selling, or renting out points. But even then you have a US property interest until it expires, which might not be a good thing.

Buying and selling as a foreigner is not as straightforward as it is for US citizens who already deal with the IRS.

As a foreigner, I would want to know how this would impact my heirs if I die. Heck, there are some horror stories on these boards having to probate just in another state. Because this is Florida property and it has to be probated in Florida with Florida courts and Florida lawyers. I would be getting local legal advice. None of us have any idea how to close an estate in OP's country with property interests abroad. It's OP who needs to know the answer to that question.

My experience has been until now is quite simple.
I haven't had to deal with the IRS at all. DVC payes property taxes for me with my MF. I don't have any children and if I die before SSR expires and my nephews want to inherit the contract they can deal with it, at that point I won't be bothered. If I sell I can let the closing company deal with the FIRPTA tax or I can pay £500 a tax professional to recover part of the FIRPTA if it's worth it.
I don't see it as a problem. Maybe I'm a fool and I should expect an IRS inspector to wait for me at the airport gate next time I'm in Orlando?

 

[RoseGold]

My experience has been until now is quite simple.
I haven't had to deal with the IRS at all. DVC payes property taxes for me with my MF. I don't have any children and if I die before SSR expires and my nephews want to inherit the contract they can deal with it, at that point I won't be bothered. If I sell I can let the closing company deal with the FIRPTA tax or I can pay £500 a tax professional to recover part of the FIRPTA if it's worth it.
I don't see it as a problem. Maybe I'm a fool and I should expect an IRS inspector to wait for me at the airport gate next time I'm in Orlando?

There are FIRPTA horror stories as well, and then there's however your home country treats your property abroad as well.

Congrats on being alive and not selling or renting points, which helps your interactions with the IRS.. If you do die, your nephews are going to have to figure out how to negotiate a multi-national inheritance, unless you have already done that work for them. This is not a trivial/cheap thing to do, as anyone who has handled an estate knows. I'm sure plenty of people have just forfeited/foreclosed deeds instead of doing it, honestly.