Need Advice on Renting Points

[GB]

I have been thinking serious about renting some of my DVC points to take a Disney Cruise. Did the cruise before and took all my points, so I figure I can rent some and have plenty left over to stay at a resort after the cruise.

I would rent for $10 a point and only in my use year so if the person backed out my points would be restored to my use year, and I could still travel on them. How much do I request as a down payment, and payment terms etc. If anyone has advice I would appreciate any information.

Thanks,

Gina

 

[eva]

I'm not quite sure about the answers to your questions. But I did want to remind you that you have to pay taxes on the money that you make from renting your points. When I did the math we would actually be losing money if we rented points for our upcoming cruise. A lot will depend on what tax bracket you are in. We pay about 30%, which means we would only be making about $7 per point after taxes.

 

[spiceycat]

there are lawyers on this board - that will hopefully come and answer this

until then

you only have to paid taxes if you are renting it regularly

or as long as it is not more than your total maintence fees - I forget which. Not just for the points that you are using but all your points.

rental property is handled quite differently by the IRS than a timeshare - you can't get paid if a charity uses your week - rental property you can - if when you sell it you lose money - you can use this as a loss - rental property you can.

timeshares are not considered to be real property by the IRS or banks for that matter.

so I don't think you need to pay taxes on the money you get -

I have not rented points - but alot of Dis Dvc's have - I think you need to get 50% before you make the reservations - and the rest 60 days before they go???? It might be 30 days before they go?

 

[GB]

Taxes!!! I already pay too many taxes.! I do indeed hope the second post is right. I am for sure not going to be renting my points on a regular bases. I pay more for the loan and dues per year than I could recoup from renting out my points. Anyway, I could't part from Disney long enough to rent on a regular basis, ha!

Do most people require half down and balance due 60 days out? I need to have some set rules with the people I rent them to. Also, what are renters cancellation policies? How much money do you return, if any?

Any suggestions will help. Thanks for both of your responses.

Gina