Some tax questions

[MrShiny]

I know I'll need to consult a tax pro for official info, but off the record, if you sold a contract for less than you paid for it, can you claim a capital loss?

Also, what is he value of the asset of your deed? Is it the purchase price until the end of the contract or does it depreciate?

Thanks!

 

[disneynutz]

Off the record, I don't think that you can claim the loss unless you claimed the asset as a business. The value fluctuates with the market, just like a house does.

 

[lacool]

You'd have to be able to prove you bought it for investment, not personal, use. If you've never used it yourself, only rented the points, I imagine it's possible to argue that. Your basis is your purchase price.

 

[jlewisinsyr]

Don't you have enough capital losses this year without factoring in the sale of your DVC? I know I'm running around halfway between 4 and 6 figures YTD in losses.

Joking aside, unlikely due to the nature of DVC and its intended purpose.

 

[NJ Mets fan]

You'd have to be able to prove you bought it for investment, not personal, use. If you've never used it yourself, only rented the points, I imagine it's possible to argue that. Your basis is your purchase price.

I'm not an accountant but I would also think you would have had to declare any profit above the annual fees as income over the time you rented the points. I doubt anyone who rents points does this unless they are truly using their DVC ownership as a business.

 

[calgarygary]

If you don't find an answer here, try asking this question over at tug - what I have read there suggests that unless you have used your dvc 100% of the time for a rental business, you will be out of luck.

 

[spatras]

Good thought, but not likely going to fly with the IRS.

 

[CarolAnnC]

You'd have to be able to prove you bought it for investment, not personal, use. If you've never used it yourself, only rented the points, I imagine it's possible to argue that. Your basis is your purchase price.

In this case I would imagine you would have to have been claiming income from the rentals during the period of ownership as well.