My Parents Won Points on the DVC Cruise - Need Help

[disneyokw]

My parents called from the Port after disembarking from this year's Member Cruise. They told me they won 175 points (worth $18,200 at least that is what my dad said) for one year at the Secrets Show. I do wish I was there to see their faces when they won. [If anyone has pictures of them on stage could you post it?] My father said that my mother thought the name they gave for my father sounded like his, but my dad knew it was him and he jumped up right away. I am really very happy for them. They really never win anything. And this year has been hard on my parents with her heart condition and she is on heavy duty meds so she could go on this trip [to be taken off when she returns home].

Anyway, Disney never told them (never gave anything in writing) if they have to pay any taxes, maintance fee or anything. I think they do and am afraid how much they would have to pay. My father is hoping that since the prize was won in international waters he does not have to pay. I am afraid to bust his buble but wanted to see if anyone out there has won anything andwhat they had to pay. Or if anyone can figure it out for me before they get back. I'm going to try to help them pay for anything but I don't have much money myself. Also my father bought 50 points for Animal Kingdom Lodge ($5,200) so he has those fees to add with our OKW, Vero fees.

BTW, my parents did say that someone on the trip won a stay in a Grand Villa. At least I think that is what they said. The call had a lot of static and it was noisy.

 

[Mtnman44]

Did they win a 175 point contract or just 175 points to use for one year. The contract is worth big money. Just a year with 175 free points is worth approx $1,750. Still nice, but you won't have to stress as much about tax handling.

 

[calypso*a*go-go]

It really sounds like it was just 1-year's use. Any why 175 pts? That just seems like an odd amount (not that I would turn it down or anything!). Congrats to your parents...please come back and post again when you get more details.

 

[disneyokw]

Hi. It is just for a one year use. I am waiting for my parents get more information. They are right now staying at OKW till November 1st. So I am thinking maybe something will come in the mail while they are away.

Both my parents have wanted to try the new Animal Kingdom Villas and now they definitely have their chance. I already printed out from the DVC website the point chart. I am going to try to convince them and treat themselves to a one bedroom savana view. Last week when they arrived at OKW for a one day stay they were upgraded to a one bedroom because there were no studios available. Seeing the one bedroom put the bug into my dad's head and that is why he bought 50 poiints at AKL. My mother tried everything to convince my dad when Disney was selling them for something like $25 a point or something recently. This trip did the trick for him to get his feet wet.

I will post when I hear more. I just wish I was there to hear my dad's name called. My mouth would have been on the floor.

 

[TLSnell1981]

.

 

[CarolMN]

When I won some pins, a shirt and a hat (from Millionaire), I got a 1099 and had to pay ordinary income taxes on the value of the stuff - which was way more than I thought the stuff was worth, LOL.

I think Disney will send or give them a 1099 as well.

Congrats to your parents on the win!

 

[kimberh]

I would sure like to know what value Disney puts on 175 points for one year... If it is over $18,000 that sounds very high to me. Congratulations to your parents.

 

[disneyokw]

Thank you for letting me know about the 1099. My father's friend does our income tax but I don't want to tell him yet because I want my father to tell him. Its great winning but then when you win you start wondering about taxes and stuff. Then it is not so fun - at least for my parents. I still think it is great.

I have to speak to them more about the win.

They told me last night that they had a great time. The Disney Legends were great, they were at a large table with only one other couple that was very nice. Last night while I was on the phone with my mom she saw the people who were at their table at Downtown Disney and she went to talk to them. They said all of the fellow travelers were nice and it looked like everyone had a good time. For some reason on the Second day at Castaway Cay my father did not want to stay on the island. My parents did do the picture taking and are in the second row. My mom said she could of held the sign but did not know if she could stand where she saw an open spot.

Looking forward to everyone on board posting their experiences.

Welcome Home everyone.

 

[Caskbill]

My sister has a friend who's son got on "The Price is Right" show with Bob Barker.

He won a trip.

After getting all the details, here's what happened.

1. TPIR valued the trip at some outrageous price.

2. California has some sort of 'winnings' tax he would have to pay.

3. He also would have had to declare the 'value' of the trip as income for tax purposes.

4. The destination wasn't a place he was really interested in going to anyway

5. If he did want to go to that destination, there were plenty of discounts available that he probably could have gone and not paid much more than he would have had to pay in taxes for the 'prize'.

I'm thinking there was also something about airfare. I think the trip was out of Los Angeles, but he lived in Florida and would have had to pay his own way to L.A? Or something like that.

This was about 5 or 6 years ago.

The bottom line was he declined the 'prize'. Wasn't worth it in the long run.

As Carol said, Disney will probably send a 1099. It could be a big one. They might 'value' the 175 points at what kind of room accommodations those points would get someone, and then list it as the 'rack rate' for that room.

If 175 points were only used at OKW, low season, weekdays only, a person could get almost 22 nights. If Disney 'values' that at $320/night, they could say the prize was worth over $7,000 that your parents would have to declare as 'income'. On the other hand, they might get lucky and Disney might only value the 175 points at the cost of the 'dues' on those points, which would put it somewhere around $750.

Hopefully it works out best and doesn't 'cost' your parents a lot in the way of taxes. In any case I'm sure Disney will put some kind of value on it that will be high enough that they will have to report it to the IRS.


Just a thought.

 

[Caskbill]

Seeing the one bedroom put the bug into my dad's head and that is why he bought 50 poiints at AKL. My mother tried everything to convince my dad when Disney was selling them for something like $25 a point or something recently.

DVC points have never sold for as low as $25/point, especially 'recently'.

I think there may be some confusion and your mom is talking about Current OKW owners who are being offered an extension of their existing contracts to cover the years 2042-2057. It's currently $15/point and goes to $25/point in February.

 

[disneyokw]

Thank you Caskbill. That is some story. I just rememberd over 10 years ago when I went to visit a friend in California. I did a bus tour where they took you by the building where game shows are filmed and they pointed out the building that winners had to go to to process paperwork (taxes, etc) before they could leave the property.

I have another question. I have no clue on filling out the income tax forms but I was wondering. Do DVC members declare their regular purchase (for lifetime) on their income tax? Also I had heard that if you want to get your credit report and such that DVC is not listed on it.

I am getting real nervous about tax time now. My father hits the roof each tax season. It has been easier since his friend started doing our taxes a few years ago.

I just spoke to them a few minutes ago. They are at Epcot waiting for their fast pass time for Soarin. He said he had a dream that he won 500 points and then he woke up (ha, ha). I think I would die if he won that much because of the tax.

Thank you for all your help. I think I will start collecting my pennies (ha, ha - gulp).

 

[Pennyguy23]

Not to sound rude or anything but they can't be hurting that bad for money if they took a DVC cruise, then are staying an extra week at OKW. Then buy Another 50 points at AKV. JMO

 

[disneynutz]

My sister has a friend who's son got on "The Price is Right" show with Bob Barker.

He won a trip.

After getting all the details, here's what happened.

1. TPIR valued the trip at some outrageous price.

2. California has some sort of 'winnings' tax he would have to pay.

3. He also would have had to declare the 'value' of the trip as income for tax purposes.

4. The destination wasn't a place he was really interested in going to anyway

5. If he did want to go to that destination, there were plenty of discounts available that he probably could have gone and not paid much more than he would have had to pay in taxes for the 'prize'.

I'm thinking there was also something about airfare. I think the trip was out of Los Angeles, but he lived in Florida and would have had to pay his own way to L.A? Or something like that.

This was about 5 or 6 years ago.

The bottom line was he declined the 'prize'. Wasn't worth it in the long run.

As Carol said, Disney will probably send a 1099. It could be a big one. They might 'value' the 175 points at what kind of room accommodations those points would get someone, and then list it as the 'rack rate' for that room.

If 175 points were only used at OKW, low season, weekdays only, a person could get almost 22 nights. If Disney 'values' that at $320/night, they could say the prize was worth over $7,000 that your parents would have to declare as 'income'. On the other hand, they might get lucky and Disney might only value the 175 points at the cost of the 'dues' on those points, which would put it somewhere around $750.

Hopefully it works out best and doesn't 'cost' your parents a lot in the way of taxes. In any case I'm sure Disney will put some kind of value on it that will be high enough that they will have to report it to the IRS.


Just a thought.

I just saw Drew Carey interviewed last week. He is the new MC for TPIR. He mentioned that more prizes go unclaimed then you would think. For the larger prizes the IRS requires payment up front. People have a hard time coming up with thousands of dollars to claim their prize.

 

[disneyokw]

Not rude at all. A valid question. Like thousands of other people they are hurting for money. Especially since on Long Island the government keeps increasing the property tax and school tax. Luckily I live at home and help with many expenses (it turns out cheaper for me too).

My parents used up all the Vero Beach points for my dad's portion and cash was used to pay for my mom. My mom and I insisted that he use the points (even though I know that a 4 day cruise paying cash would be cheaper). I wanted them to go all out and have a blast. Because you never know how long you have (a consistent reminder nowadays with the health problems). Growing up we never went on vacation (once to Lake George). Our vacation was staying home and driving out on the island for one day every year. Now that we bought into Disney we all go on vacations. He really loves that Disney provides transportation and has more than just theme parks. He really is very relaxed and enjoys Disney. This year I used cash for one trip and borrowed points for another.

 

[disneyokw]

I just saw Drew Carey interviewed last week. He is the new MC for TPIR. He mentioned that more prizes go unclaimed then you would think. For the larger prizes the IRS requires payment up front. People have a hard time coming up with thousands of dollars to claim their prize.

I was thinking the same thing Disneynutz. Can you imagine winning a million dollars. You are jumping around. Thinking all your expenses are paid off, you can pay off the mortgage, go on vacation and then bam reality sets in. I think the government should change how winnings are reported. People are getting penalized for winning.

I'm so curious how much Disney is going to say the points are worth. I have not discussed any of this with my parents yet. Why spoil their trip. They had a wonderful time on the cruise (even before winning). My mom mentioned seeing all the people with the Disboards buttons and talking to many of them. She said DVC members are great. I am very glad they got to experience a DVC Member Cruise. I wanted to go but thought it would be great for my dad to experience it. My mom is already a HUGE Disney nut.

 

[Olaf]

It's like the people who win the HGTV dream house every year. I don't think one of them has been able to keep the thing. Everyone has to sell the house just to pay the taxes. It's ridiculous.

 

[Mtnman44]

Ha, there is no way I'd give them my information for that. They can keep the hat and shirt! Putting my SS# down on yet another piece of paper for someone to file is not worth it to me.

By the way, I've have no experience with this, but I'm pretty sure that when you win something and the 1099 lists an over-valued amount, there is a form/procedure to show evidence of actual market value and you can get the taxable amount of the prize reduced to the fair market value. For example, if you win a car and they list the full MSRP value of $40,000 you can get the taxable amount reduced down to what people can actually buy the same thing for at a dealership, like $34k or whatever it happens to work out as.

When I won some pins, a shirt and a hat (from Millionaire), I got a 1099 and had to pay ordinary income taxes on the value of the stuff - which was way more than I thought the stuff was worth, LOL.

I think Disney will send or give them a 1099 as well.

Congrats to your parents on the win!

 

[Mtnman44]

Please keep all these things in mind next November when you decide who you want making tax policy!

It's like the people who win the HGTV dream house every year. I don't think one of them has been able to keep the thing. Everyone has to sell the house just to pay the taxes. It's ridiculous.

 

[pumpkinboy]

Notably, all of the Year of a Million Dreams prizes come with pool of cash to pay the taxes on them. I suspect that this prize is similar, since this seems to be the way Disney is operating these days. If Disney says the prize was worth $18k, that is sounding more like the actual contract than just one year's points; otherwise they would have described it as a free Disney vacation. I hope, for their sake, that Disney is including an amount to pay the tax, as they are with YoMD prizes.

Congrats to your parents!

 

[disneyokw]

Notably, all of the Year of a Million Dreams prizes come with pool of cash to pay the taxes on them. I suspect that this prize is similar, since this seems to be the way Disney is operating these days. If Disney says the prize was worth $18k, that is sounding more like the actual contract than just one year's points; otherwise they would have described it as a free Disney vacation. I hope, for their sake, that Disney is including an amount to pay the tax, as they are with YoMD prizes.

Congrats to your parents!

Thank you for your post. I am hoping Disney is paying the tax (who wouldn't). I don't know how the announcement or the listing of prizes was listed. I already told my mom that dad may have to pay tax's come April <gulp>. She is keeping mum because it would spoil my dad's entire trip (and hers too).

I spoke to them this morning and it was raining last night and a bit this morning. My dad went to do some weights in the exercise room. He knows how flabby he is. They are right now heading to the Magic Kingdom. For my mom and I we are truly not at Disney until we go to the Magic Kingdom. I was there at the end of Sept - beginning of October and the Magic Kingdom had orange bunting which made MK more beautiful. In fact I think this is the best decoration I have ever seen at MK. Now I really can't wait for my December trip with my mom. It will be her 65 birthday and I am paying a lot to go all out for her. Unfortunately come the new year I am going to have a heart attack when my credit card bill comes in. I am being like Scarlet O'Hara - I'll think about it tomorrow.