Rumor by agent - Blue Card min. going up

[Leahc117]

Thank you for your reply. I believe I could be very happy staying at the resorts that I would have access to through a resale membership. I could get 200 pts without financing or feeling too stressed during this time of uncertainty in the world. The cost of 200 pts direct would cause some stress but I realize there are pretty good incentives right now. It seems to me that people love their memberships and don’t regret too much about it. I think I am just caught up on those direct benefits - so I could decide that I love having those 200 resale points so much that I add 125 on down the road. Is moonlight magic worth 10,000 additional purchase price? Annual passes? One thing I look forward to with DVC is not feeling like we have to overdo the parks each trip- maybe we wouldnt need APS? On our last trip we stayed at AKL and did 2 half days at animal kingdom. We enjoyed that so much- FP for our fav rides, a couple good meals but less stress than the 10 hour day spent at MK. So not sure if that’s an argument for having APS or not.

 

[Leahc117]

DVC can be bought by a corporation and any officer/director can be added:
https://disneyvacationclub.disney.go.com/faq/contract-deeds/corporation-llc/
If you were going down that path, a corporation is how I would do it.

But this requires legal advice for when someone dies, gets sued, wants out, doesn't want to pay, etc. like any business relationship with a significant asset.

I thought I heard something about additional costs when buying through a corporation- I can’t remember if it was extra dues or extra taxes but quite a bit more expensive I’ve heard

 

[Dean]

It is 8 per household for each owner. We had this clarified when we bought last year. Each owner is entitled to up to 8.

That would have been my guess and I almost went back and added that as the likely interpretation.

 

[BritneyBelle]

I thought I heard something about additional costs when buying through a corporation- I can’t remember if it was extra dues or extra taxes but quite a bit more expensive I’ve heard

I thought it was the maintenance was higher.

 

[SL6827]

I will never buy in direct, and most likely never will join back in with resale, but, I won't ever say never with resale, lol.

DVC can be bought by a corporation and any officer/director can be added:
https://disneyvacationclub.disney.go.com/faq/contract-deeds/corporation-llc/
If you were going down that path, a corporation is how I would do it.

But this requires legal advice for when someone dies, gets sued, wants out, doesn't want to pay, etc. like any business relationship with a significant asset.

Oh, lawd. I am just going to stop, over my head, lol.

 

[BritneyBelle]

This makes me more curious to see what there July sales numbers will be when they hit

This

 

[Fred M]

DVC can be bought by a corporation and any officer/director can be added:
https://disneyvacationclub.disney.go.com/faq/contract-deeds/corporation-llc/
If you were going down that path, a corporation is how I would do it.

But this requires legal advice for when someone dies, gets sued, wants out, doesn't want to pay, etc. like any business relationship with a significant asset.

There are other considerations too. Here in California, unless an exception applies, corporations and LLCs have to pay an annual $800 minimum tax to the state. Also, you have to pay $100 to file your articles of incorporation or $70 for your articles of organization. There is also an annual cost to file a statement of information--$25 for corporations and $20 for LLCs (even if there are no changes from the prior one). On top of that, if Disney needs certified records, those are $5 each. If you rent out your points, the corporation or LLC may very well have income, which is taxed differently than individual income by both the feds and your state. Plus, you'll need to file tax returns for your corporation or LLC. There might be restrictions in your state's code on a LLC owning property out of state. And as a foreign LLC or corporation buying property in Florida or Hawaii, you may very well have to register in Florida or Hawaii and pay fees there, and you need to find out if you need a certificate of authority or otherwise register to do business in those states (and especially even more if you rent out points--you rent your Aulani points for someone to book a reservation at Grand Floridian, are you doing business in both states?).

If someone has an existing business, I can see it making sense to look into the business buying DVC. However, if someone is forming a corporation or LLC simply to buy DVC, I wouldn't do it.

 

[RoseGold]

There are other considerations too. Here in California, unless an exception applies, corporations and LLCs have to pay an annual $800 minimum tax to the state.

California is an extreme outlier. In most states, establishing this is a pain, but certainly not $800/year.

 

[T-i-double-guh-er]

For those of you who think this may just be a rumor - how would you expect Disney to announce this change? Will there be an email or something on the website that lists the change to 125pts?

Last time there had been rumors like this, then one day the text at the bottom of various DVC web pages was updated. https://dvcfan.com/2019/09/13/disney-confirms-direct-minimum-points-increase-for-dvc-perks/ That was it as far as an "announcement."

 

[Fred M]

California is an extreme outlier. In most states, establishing this is a pain, but certainly not $800/year.

I guess some sage advice from someone who has been practicing law for 25 years doesn't fit the Internet narrative about California. Besides, when it comes to annual franchise taxes on corporations and LLCs, Arkansas ($150), Delaware ($300), and Vermont ($250) all have them. Plus, if you rent out points, Alabama, Arkansas, Delaware, Georgia, Illinois, Louisiana, Mississippi, Missouri, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas, and West Virginia all have some sort of franchise tax based on income.

But what do I know. I'm from California.

 

[RoseGold]

I guess some sage advice from someone who has been practicing law for 25 years doesn't fit the Internet narrative about California. Besides, when it comes to annual franchise taxes on corporations and LLCs, Arkansas ($150), Delaware ($300), and Vermont ($250) all have them. Plus, if you rent out points, Alabama, Arkansas, Delaware, Georgia, Illinois, Louisiana, Mississippi, Missouri, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, Texas, and West Virginia all have some sort of franchise tax based on income.

But what do I know. I'm from California.

Yea, and none of this is as much as the $800/yr for California?

Someone asked how to get over eight people on the title. I can tell you if I were going to do this, I would do it through a corporation and the officers/board members. People can and do buy DVC as corporations all the time, and they don't have to be California corporations.

Texas has minimal filing fees and franchise tax kicks in for revenue over 1M, which probably isn't an issue for a LLC created to own DVC.

 

[sethschroeder]

Yea, and none of this is as much as the $800/yr for California?

Someone asked how to get over eight people on the title. I can tell you if I were going to do this, I would do it through a corporation and the officers/board members. People can and do buy DVC as corporations all the time, and they don't have to be California corporations.

Texas has minimal filing fees and franchise tax kicks in for revenue over 1M, which probably isn't an issue for a LLC created to own DVC.

What happens when you make a joke about your brother and he votes you off the board though? hahahaha

 

[BritneyBelle]

I know for me personally 75 was a consideration for direct, 100 is an unlikely stretch, and 125 is a non-starter. I can’t be the only one...

 

[EM Lawrence]

I know for me personally 75 was a consideration for direct, 100 is an unlikely stretch, and 125 is a non-starter. I can’t be the only one...

Same. 75, maybe, 100, if the incentives were appealing enough (right now, they are not) 125, only if it involved bargain basement pricing and additional great incentives. Otherwise, I’m perfectly delighted to stay on team white card.

 

[ScubaCat]

I know for me personally 75 was a consideration for direct, 100 is an unlikely stretch, and 125 is a non-starter. I can’t be the only one...

After it goes up to 125, then 100 will be a consideration, 125 an unlikely stretch, and 150 a non starter.

 

[BritneyBelle]

After it goes up to 125, then 100 will be a consideration, 125 an unlikely stretch, and 150 a non starter.

I get your point, but you’re looking at $95ish dollars a point more direct vs resale. $7,125 (75 points) is potentially justifiable for me, $9,500 is harder to swallow, and $11,875 is just too much. But everyone has to make their own value judgement.

 

[Dean]

I get your point, but you’re looking at $95ish dollars a point more direct vs resale. $7,125 (75 points) is potentially justifiable for me, $9,500 is harder to swallow, and $11,875 is just too much. But everyone has to make their own value judgement.

I think we've seen this type of statement at every point along the way whether it be retail to resale differential in general or 25, 75 or 100 points resale. Certainly there will be some that don't buy because of this and likely a few that would have bought retail at 100 but not at 125 but the reality is that the difference really isn't that much between the cost of 100 & 125 retail if one were going to go retail at 100 anyway. The big jump was actually the jump from 25 to 75. Now we're getting to the point where many won't need enough to buy retail AND resale both which is likely part of the goal of DVD. In reality if only the numbers were taken into account, most people that buy retail shouldn't but many will talk themselves into it. Mark my words we'll see a post from someone who said it didn't make sense for them who ends up buying retail at least for a portion of their points. It's like going looking a new cars, odds are you'll come home with one fairly soon and it rarely makes sense in that situation either.

 

[RoseGold]

I'm really disappointed in the Disneyland tower, which I had planned to get my Blue Card with.

At this point, it would take either a drop to 50/75 points or a wing in the Star Wars hotel to get me to buy direct.

 

[Grumpy by Birth]

I'm really disappointed in the Disneyland tower, which I had planned to get my Blue Card with.

At this point, it would take either a drop to 50/75 points or a wing in the Star Wars hotel to get me to buy direct.

Add Dagobah-themed DVC "huts" adjacent to the Galactic Starcruiser hotel (only 1000 points/night).

 

[sethschroeder]

Add Dagobah-themed DVC "huts" adjacent to the Galactic Starcruiser hotel (only 1000 points/night).

View attachment 516257

Nah go with Ewok treehouse style huts.