Sold contract in 2021 for profit, pls help

[nono]

There is a thread somewhere on the Disboards that outlines how to handle the accounting of a DVC for a profit. I cannot find it. Can anyone point me to it or outline how the various items are accounted for over the years? I just need a starting point. Thanks!

 

[wnielsen1]

I am assuming you are raising this question for tax reasons. Contact your tax advisor, but a simplified version would be something like this:

Sales proceeds minus closing costs at sale = Net proceeds

Original purchase price + closing costs at purchase + capital reserve portion (only) of dues = Adjusted basis

Net proceeds minus adjusted basis = Gain or loss

 

[WDWEPCOT]

correct me if I’m wrong - but I thought way back in the day if you purchased Direct from Disney - no closing cost - am I corrrct? Not meaning to hijack the thread but I sold two contracts - both old ones and I don’t believe Disney was charging closing cost
I have not dug out all my paperwork yet
Thank you for your response - it is very helpful !!!

 

[LadybugsMum]

correct me if I’m wrong - but I thought way back in the day if you purchased Direct from Disney - no closing cost - am I corrrct? Not meaning to hijack the thread but I sold two contracts - both old ones and I don’t believe Disney was charging closing cost
I have not dug out all my paperwork yet
Thank you for your response - it is very helpful !!!

I bought direct last summer and had to pay closing costs. It may depend on when you purchased your contract.

 

[WDWEPCOT]

Mine were purchased like a hundred years ago before Disney got all greedy for all your cash - I don’t believe they were charging closing cost - but I could be so wrong

 

[nono]

I am assuming you are raising this question for tax reasons. Contact your tax advisor, but a simplified version would be something like this:

Sales proceeds minus closing costs at sale = Net proceeds

Original purchase price + closing costs at purchase + capital reserve portion (only) of dues = Adjusted basis

Net proceeds minus adjusted basis = Gain or loss

Yes, this is the exact back of the napkin I was looking for...Thanks! I couldn't remember what constituted adjusted basis.

The quote of the week from my accountant, "Who the hell sells a timeshare for a profit?" To which my answer was, "Top line, top line." Need to get to net to see.

Thank you!

 

[WDWEPCOT]

Oh Disney people do that’s who !!! Location Location Location
I’m pretty sure I did - not that I need more reasons to pay more taxes - Haa haa !!!
Good Luck with your calculations I hope it works out well for you !!

 

[RoseGold]

The quote of the week from my accountant, "Who the hell sells a timeshare for a profit?"

LOVE IT

 

[CarolynFH]

correct me if I’m wrong - but I thought way back in the day if you purchased Direct from Disney - no closing cost - am I corrrct? Not meaning to hijack the thread but I sold two contracts - both old ones and I don’t believe Disney was charging closing cost
I have not dug out all my paperwork yet
Thank you for your response - it is very helpful !!!

We didn’t pay closing costs buying direct in 1997. Can’t remember when they changed it to have the buyer pay.

 

[KAT4DISNEY]

Mine were purchased like a hundred years ago before Disney got all greedy for all your cash - I don’t believe they were charging closing cost - but I could be so wrong

I think it was somewhere around 2011 that they started passing along the closing costs to buyers on new resorts. They didn't charge for add on's at "sold out" resorts for another couple of years.

 

[WDWEPCOT]

Thank you !

 

[Best Aunt]

To help narrow down the timing a little:

2009 purchased a "sold out" resort direct from Disney. No closing costs.

2009 did an add-on of a new resort direct from Disney. No closing costs. My notes say that I thought there were no closing costs for add-ons of any resort at that time.

2014 did an add-on of a "sold out resort" direct from Disney. They did charge closing costs.