selling a contract ??

[pyrxtc]

My MIL bought 50 points cash for AKV 2 years ago and now wants to sell them because she doesn't see herself going that much after all. (Yes, I tried to talk her out of it.) After looking at The Timeshare store prices, I am figuring she'll get maybe $2,800 for them since 2011 is used and no more points til June 2012 and also couldn't close until end of September since we have a vacation planned for labor day weekend using points and I don't know where the points were used from, our contract vs hers.

I am trying to convince DH to just tell her we'll buy it from her over the next few years by paying her dues each year and she'll never have to worry about it again but I don't know if he's going for it. She already owes us this years dues. Also, now with all the rules regarding buying resale not having the same value as a direct buy... I'm not so sure.

It was bought with the intent that we always have a bed for her when we go, so we have that bed in June but not in Sept. for DL.

 

[Kidanifan08]

A 50 point AKL contract is probably worth more than $2800, even with the 2011 points stripped. For small point contracts, you will usually get a little more than the larger ones. You could probably list the contract for $80-85 and probably get no less than the low 70's.

The plan of buying the points would work as well. Since it would be a resale, you would lose the ability to book Adventures, concierge collection and DCL, but it is only 50 points, which does not go very far with either any of those. Given the small value of the 50 points, she may be able to gift the ownership to you without any tax burden, if she has the luxury of being generous. Or, as you suggested, you could just pay the MF for the next several years, unless she needs the money from the sale.

 

[JWG]

If you take the contract as a gratuitous transfer, it retains its direct purchase value. Just don't pay your MIL for the contract.

Or, have your names added and leave hers on also. This still requires appropriate legal steps be taken as it's an ownership deed, but is a solution.

 

[pyrxtc]

well it would be easy to make it ours since she put put my name on it first and then hers.

Would selling it mess with my taxes ?

I was looking at the low 70's when I said $2,800 since there would be listing fees and commission. I even have the option of renting out her points for the next few years and paying her that way. I tried telling her that the money would be worth it for the next 48 years of vacations since it is already paid off and now it's only dues but she doesn't think so.

 

[Sandisw]

well it would be easy to make it ours since she put put my name on it first and then hers.

Would selling it mess with my taxes ?

I was looking at the low 70's when I said $2,800 since there would be listing fees and commission. I even have the option of renting out her points for the next few years and paying her that way. I tried telling her that the money would be worth it for the next 48 years of vacations since it is already paid off and now it's only dues but she doesn't think so.

If you are listed as an owner on the contract, then the sale would be from the both of you. As far as taxes, I think it would depend on whether or not there was a gain but it would have to be reported as a sale (not sure if only one owner can do it).

If you think you have the need for the points and DH is on board, then the easiest is to have her name simply removed from the deed and have it become yours.

However, if she really wants to sell it and it is her contract, I think it will make things easier if she just does.

We sold a contract with a delayed closing so there are buyers out there that would be okay with waiting.

 

[mikron]

RENT,RENT AKV is very easy to rent and for higher prices then some other resorts. Been renting since 2004 and not one problem. With the new rules of 50 post over 6 months before you can rent is helps keep out the non Disney folks.