Tax-Deductibility of Disney Financed DVC

[havertown]

Hi,

Is it safe to presume that because I financed my DVC, and signed a mortgage, that I can deduct interest expense on my tax return related to DVC financing of my VGF points? If so, can I expect to receive a 1098 at the end of the year?

I only hope to finance for a year or so, and pay off ahead of time, but was wondering nonetheless.

Thanks for any response!

havertown

 

[Sandisw]

Yes, I believe that Disney interest is considered mortgage interest and may be tax deductible.

Obviously, it depends on your own personal situation.

 

[chalee94]

as discussed in this thread ( http://www.disboards.com/showthread.php?t=3136481 ), direct purchases are structured to generally allow for deductibility of interest (some tax rules can still shut you down though, if you are financing too many "homes.")

here's more information:

http://www.irs.gov/publications/p936/ar02.html

(naturally, if the government were to eliminate the deductibility of mortgage interest entirely, that would apply to DVC loans as well...but that's still very speculative.)

 

[havertown]

thanks for the link - I saw that thread yesterday, which prompted my question, I didn't see the response late last night with the answer to my question - my apologies

 

[BillPA]

A portion of the dues you pay is for real estate tax and can deducted. It doesn't amount to much, but better in your pocket.

 

[Dean]

Hi,

Is it safe to presume that because I financed my DVC, and signed a mortgage, that I can deduct interest expense on my tax return related to DVC financing of my VGF points? If so, can I expect to receive a 1098 at the end of the year?

I only hope to finance for a year or so, and pay off ahead of time, but was wondering nonetheless.

Thanks for any response!

havertown

Yes, subject to the rules which generally limit you to deducting the interest on ONE second home.

 

[awilliams4]

Yes, subject to the rules which generally limit you to deducting the interest on ONE second home.

I wonder if you own at two or more resorts that you can only deduct taxes at one then assuming your own your home.

 

[Dean]

I wonder if you own at two or more resorts that you can only deduct taxes at one then assuming your own your home.

I'm not a tax expert certainly but my assumption would be no because you'd has separate 1098's. Now if you took out a HELOC or similar, that'd be a different answer but you wouldn't be deducting interest on a timeshare mortgage, technically. wonder if Timeshare lenders or DVC would issue a single mortgage against multiple DVC contracts and I'd assume no. The benefit is so small as to not be important IMO but if one finds themselves in the situation, you wouldn't want to miss any deduction possible.

 

[chalee94]

i don't know if this has much of a chance or not but it might be interesting to watch and potentially applicable to this topic...

CNBC story on mortgage interest deduction

Congressional action on the U.S. tax code could dramatically alter one of its sacred cows: the mortgage interest deduction. And the change could come in 2013...

The various proposals would have a tax credit from a low of 12 percent to a high of 15 percent, without the need for taxpayers to itemize their returns. The proposals would limit the mortgage interest covered in the credit up to $500,000, or half of what it is now. All but one of the major proposals would eliminate the tax credit for a second home.