Last minute tax question...

[tigalig]

I realize that this is not a professional tax advice board, but I thought I would ask anyway for assurance until I hear back from the IRS. We became DVC members last July and I just learned that our mortgage interest "may" be deductible. I printed all I could from the IRS website and all I found was that a time-sharing plan could be a qualified home (for purposes of deducting mortgage interest) if it meets "all the requirements." What does that mean??? It's not that much interest really, but there is clear language in pub. 936 that says that if we choose not to deduct it, we will need IRS consent to deduct it in future years. If you will please share whether or not you deduct your mortgage interest, I will be very grateful.

Ida

 

[MiaSRN62]

Yes, the mortgage interest you pay on the DVC loan is deductible, as are the real estate taxes.
To my knowlege, the maintenance fees are not.

 

[pumpkinboy]

DVD will send you a 1099 detailing your DVC mortgage interest paid in the FY. Yeah, it's not much but every little bit helps. And as MiaSRN62 notes, the DVC real estate taxes are also deductible, and these are also detailed for you by DVD.

 

[Skip Wiley]

You didn't mention how you financed your purchase. The way I understand it, if you went through Disney it would be a secured loan and the interest would be tax deductable. If you financed somewhere else its most likely an unsecured loan and not tax deductable. Of course, I'm not a tax expert nor did I stay at a Holiday Inn Express last night.

 

[tigalig]

I just spoke with the IRS and the mortgage interest and real estate taxes are deductible. Thank you for your replies.

Ida