Quick tax question

[doconeill]

Will we be receiving an actual tax statement from DVC, or is our dues statement it?

Also, we paid an "estimated" property taxes amount on our dues last year, and then received a credit for this year for the difference - but the difference is HUGE - our "actual" was a small fraction of the estimate. Any idea why? We bought in early last year if that has anything to do with it, but the rate for "actual" is quite small to the estimated for next year, and they prorated that for the number of days in the year we were owners already...

 

[RobDoc]

Members do not receive any tax statement from DVC besides the dues statement. If you have a mortgage, you will receive a 1099 reporting any interest paid.

As for the property taxes, you may be able to deduct the amount paid on your taxes (check with your tax advisor). If you just purchased in 2007, you paid a prorated amount based on your date of purchase and that is what you should be able to deduct. You may need to deduct the overpayment from your amount paid in 2008 (again, I'd verify the deductibility with your personal tax advisor). The reported difference in the 2007 taxes should be weighed against the prorated amount, so the difference isn't really as large as it sounds but Member Accounting should be able to explain that too.

Good luck!

 

[doconeill]

Uhh...looks like you spliced two different replies together...I'm not asking about bookings, borrowing, or anything like that...I understand all that

I know I'd pay a prorated amount. We purchased around March/April (forget when the closing was exactly), so we're prorated for 301 days. However, that doesn't account for the difference - its the RATE that is wildly different for some reason. Instead of a rate of something like 0.9425 (I think, not in front of me now), the rate was 0.0344. THAT'S a significant difference. So I ended up getting most of the estimated taxes back.

 

[RobDoc]

You're right - I somehow dumped in a reply for another post ... sorry for the confusion!

I think you can deduct the full amount paid in 2007, but will then need to subtract the 2007 overpayment from the amount actually paid in 2008 for your 2008 taxes.

Member Accounting would be the ones to explain the large difference. I don't recall that large a discrepancy being reported at the annual meeting.