Point swaps with other DVC owners

[macman123]

And the difference in number of nights would also be tricky, which is why it may never have been a very popular choice.

If I want 5 nights at RIV and you want 5 nights at BWV, it’s not going to be even trade, even valuing point for point the same.

So, then there is potential money? And, when doing this with a stranger, someone has to goes first and you have to hope they don’t cancel. But, no different then renting.

It sounds like it would be easy but it’s really got a lot of moving parts.

Yes I get that. 5 nights isnt going to be 5 nights.

It may well be 5 nights BWV = 3 nights RIV - but I think in principle if you swapped 200 BWV for 200 RIV you could work out the details.

 

[Sandisw]

Yes I get that. 5 nights isnt going to be 5 nights.

It may well be 5 nights BWV = 3 nights RIV - but I think in principle if you swapped 200 BWV for 200 RIV you could work out the details.

But that is the thing with a swap if you are not doing the transfer. The points have to equal actual nights for a stay, even if over more than one trip. So it would be hard for exact numbers to match.

Personally, I wouldn’t swap my RIV or VGF points for other resorts evenly but that is just me.

Again, is it possible to find someone who might want it? Maybe but honestly, most would rather just look for a transfer and do it that way.

 

[808blessing]

I think swaps are a great idea and was looking at that as a new owner. Negotiations and contracts are in order of course. I'd go night for night ideally because I value my home resort points highly and it would be easier to calculate because it will be uneven if p2p. I think the overage can be easily converted though. Practically, I think a point to point swap makes more sense. Transfers seem cleanest though.

Ideally I'd love a little crew where we each own a little of all and it's easy to mix and match. I'd swap my BW for RiV or AK sometime in future years. Doing it at 7 months has been great on split stays. Not ready for a full one resort stay yet- very attached right now!

 

[Sandisw]

I think swaps are a great idea and was looking at that as a new owner. Negotiations and contracts are in order of course. I'd go night for night ideally because I value my home resort points highly and it would be easier to calculate because it will be uneven if p2p. I think the overage can be easily converted though. Practically, I think a point to point swap makes more sense. Transfers seem cleanest though.

Ideally I'd love a little crew where we each own a little of all and it's easy to mix and match. I'd swap my BW for RiV or AK sometime in future years. Doing it at 7 months has been great on split stays. Not ready for a full one resort stay yet- very attached right now!

In your example, though, you spend less points to book BWV than the RIV owner will spend to book that resort if you go night for night.

That might be hard to find someone who is willing to do that, which is probably why that option was not popular and has issues when it was a choice here on the DIS.

 

[808blessing]

Yeah! I can see how people wouldn't want to do that! But I would want to. lol. I'm very attached to my points so I actually am not in the spirit of doing anything except enjoying them!

 

[supersnoop]

Step 1: Rent your points out
Step 2: Rent points for the resort you want

The likelyhood of finding another owner with the resort you want, who wants the resort you own, and wants to trade points of the exact same value is practically nil.

 

[NorCalDisFan]

Step 1: Rent your points out
Step 2: Rent points for the resort you want

The likelyhood of finding another owner with the resort you want, who wants the resort you own, and wants to trade points of the exact same value is practically nil.

Don’t we need to report the point rental income? The points we can buy after tax get shrunk.

 

[CarolMN]

Don’t we need to report the point rental income? The points we can buy after tax get shrunk.

IRS considers barters, trades & swaps to be taxable, too.

 

[808blessing]

^oh wow! i had no idea!

 

[Huskerpaul]

IRS considers barters, trades & swaps to be taxable, too.

I wonder how much income the IRS receives from taxpayers self-reporting barters, trades, and swaps? I'm betting not much.

 

[kilik64]

I wonder how much income the IRS receives from taxpayers self-reporting barters, trades, and swaps? I'm betting not much.

IRS gotta catch me first!

 

[macman123]

Don’t we need to report the point rental income? The points we can buy after tax get shrunk.

I don't need to report in USA

 

[808blessing]

Audit alert in progress. Downloading data. (Ominous voice through the : We will be back for you. Muahahahahhahahhahaha...)

 

[chrispgross]

IRS considers barters, trades & swaps to be taxable, too.

DVC Rental Store told me if I went this route there wouldn't be a 1099. But I guess the best bet is "check with a qualified tax professional."

 

[Huskerpaul]

DVC Rental Store told me if I went this route there wouldn't be a 1099. But I guess the best bet is "check with a qualified tax professional."

I'm betting they mean DVC Rental Store would not issue a 1099 because they are not directly involved in the transaction as a party to the transaction. Not that the transaction itself would be exempt from a 1099 requirement.

 

[DonMacGregor]

I'm betting they mean DVC Rental Store would not issue a 1099 because they are not directly involved in the transaction as a party to the transaction. Not that the transaction itself would be exempt from a 1099 requirement.

 

[sethschroeder]

Whoever is second has to hope the first owner doesn't simply cancel the reservation leading to a legal action requirement headache.

 

[AnnaKristoff2013]

But if you control the booking as you would do renting - Im not sure what the concern would be?

The same problem with all rentals, it requires trust. The person with the “second” rental would have to trust that the person with the first rental doesn’t cancel the second rental after they get the benefit of going on the first one. Not a huge problem, as rentals go fine all the time, but still a small risk.

 

[AnnaKristoff2013]

What we really need is an RCI type company to facilitate trades amongst resale owners. This is going to become more of a thing as more and more resorts enter the “restricted” category like Riviera.

 

[HyperspaceMountainPilot]

I’m just beginning my DVC tycoon journey and far from having enough extra points i can rent them, but when I report income for the rental properties I own, I get to deduct all costs and expenses in maintaining the property plus the mortgage payments… so if you rent out points, shouldn’t the reportable 1099 income only be the cost per point above the sum of your annual dues and initial purchase price divided by the life of contract?