Selling and taxes

Discussion in 'Purchasing DVC' started by kshark1958, Jan 6, 2019.

  1. kshark1958

    kshark1958 Mouseketeer

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    If I do choose to sell my DVC membership. Besides the commission to the company selling my DVC will I also have to pay federal or some kind of state taxes since I will be making a profit when I sell it.
     
  2. _auroraborealis_

    _auroraborealis_ I like marshmallows. And adult beverages.

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    Possibly. That's really a question for your own tax advisor, since it will depend on a lot of factors including your state and the whole of your tax scenario.
     
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  4. miTnosnhoJ

    miTnosnhoJ DIS Veteran

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    In general you might pay tax on the difference between what you paid for it and what you sold it for. The capital gains tax rate is now zero for up to somewhere around $75,000 in capital gains. But this would not apply for state taxes. It is worth asking a CPA, who can give you a real answer.
     
    Last edited: Jan 6, 2019
  5. supersnoop

    supersnoop What time is the three o'clock parade?

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    You can adjust your cost basis based on the capital improvements included in your annual dues.
     
  6. ELMC

    ELMC DIS Veteran

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    The official answer is consult your tax advisor. However, what I can say is that when you sell a DVC contract you will receive a 1099 for the sale price net of expenses. That amount will need to be reported on your tax return and your tax advisor can instruct you on the various legal ways to mitigate that amount.
     
  7. ArcticTeacher

    ArcticTeacher Earning My Ears

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    I sold my Aulani DVC last summer and Hawaii took out almost $500 of my net proceeds. I guess I'll have to file taxes in HI? I do have a tax guy who I will ask too.
     

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