Is DVC Financing Interest Tax Deductible?

[NUHuskies#1]

Newbie here-

Is the interest paid through DVC financing through the Vacation Club tax deductible like your home's mortgage interest?-Probably not, but I thought I'd ask anyway.

Anyone know?

Thanks!

 

[DisneyHumbug]

Yes, it is. My accountant also uses the property tax portion of the dues as a deduction, too.

 

[BillPA]

Generally YES, but there are restrictions, you should always check with a tax expert, one that knows your situation.

If you itemize now, and don't have a 2nd home that you claim already you can deduct the interest and taxes. But without knowing all your details it is difficult to say what you can do.

 

[CarolA]

I researched this once and decided that for me I could probably deduct the interest IF I used Disney financing. However, if you use a credit card and/or the resale financer it might not be. The IRS says that mortgage interest has to be secured by the property and the resale financing was actually a personal loan when I looked.

I also deduct the property tax.

 

[Caskbill]

Unless things have changed, there are two requirements that I know of for the interest to be deductible.

1. The mortgage/interest must be secured by the real property itself. As mentioned, a personal loan doesn't work.

2. You are allowed only one (that is a single) 2nd property. This includes any fully equipped RV's or Boats. (Fully equipped means they have cooking, sleeping, and bath facilities - or in other words are fully self-contained). Thus you could not claim interest paid on loans for a) your house, b) an RV, and C) Disney, all at the same time.

That's what we had in our case, but that was many years ago. As always, your case may be different. So check with your accountant (or call the IRS) to be sure.

 

[NUHuskies#1]

Thank you all for the good advice. I think we may qualify! We are financing through DVC and it is only one 2nd home! Yippee!

 

[queenof4hearts]

What if you have 2 seperate contracts w/ Disney? Are they both tax deductable? Thanks

 

[pumpkinboy]

Originally posted by queenof4hearts
What if you have 2 seperate contracts w/ Disney? Are they both tax deductable? Thanks

According to our tax guy, the real estate taxes on all four of our DVC contracts is deductable, as is the interest on any of the contracts we had financed thru DVC (counts as mortgage interest). So we've deducted all of it, and the IRS seems fine with it since we've been doing it.

 

[JessetheCowgirl]

Woo HOO!!! I think we can do this as well, but I hadn't thought about it prior to reading this thread.

I LOVE the DIS!!!!!!!