Selling DVC and being Canadian

[Canadian Tom]

Hello: Didn't know that when/if I sell my DVC points that as a Canadian I have to pay 10% of the selling price to the US government in addition to any commissions.What if I sell it to a friend and fellow canadian? How about a family member? Wasn't told that when I bought. Anyone know anything about this? Thanks

 

[tigger2on]

I was told you only pay 10% if you make a profit. So if you bought at $80/pt and sell at $90/pt, the difference made is taxed 10%.
Tom Yeary would be a good person to ask as he is the Resale Wizard of the boards!!!

Hello: Didn't know that when/if I sell my DVC points that as a Canadian I have to pay 10% of the selling price to the US government in addition to any commissions.What if I sell it to a friend and fellow canadian? How about a family member? Wasn't told that when I bought. Anyone know anything about this? Thanks

 

[froggie]

hello fellow Canadain. I don't have the answer sorry but we are looking into buying do you have any comments on why to or not to buy. Thanks for your time.
Oshawa Ontario.

 

[Canadian Tom]

bump bump bump

 

[ClarabelleCow]

I'd saythe only true answer you will get is from someone that has done it or contact a resale broker and see what they have to say??? The agents at TTS are very willing to answer any questions you may have!

 

[Doctor P]

Keep in mind that the requirement as it has been stated on this board is that there be a 10% WITHOLDING for taxes. I have not looked up this particular tax law, but I suspect that two things are true based on my knowledge of other aspects of the tax law: 1) you may or may not ultimately owe any actual taxes and may get all of the money back after the tax year is completed; 2) you would likely receive a credit for any "foreign" taxes paid on the same transaction. I will try to do a little more research and let you know what I find out.

 

[Doctor P]

Here is the relevant tax law information:

http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html

Note that the U.S. BUYER is responsible for witholding 10% of the purchase price in such circumstances and must always determine whether the seller is a foreign national. Very interesting.