tax deductible ?

[Sharper]

I have been reading the IRS publications and my head hurts. It would appear that interest on buying DVC would be deductible as interest on a "second home" but interpreting the IRS gobbledygook is tricky. We only have one other home. Obviously not anticipating legal advice, but am I missing something? Did any buyers here deduct interest?

 

[RobDoc]

You should certainly look to your tax professional for advice, but I have always deducted the property tax component of my annual dues, as well as the interest on the mortgage for our DVC contracts.

The mortgage needs to be secured by the property (or your home as with a home equity loan) and there are certainly some IRS provisions which may or may not apply to your particluar situation. Your accountant should be able to advise about whether this is appropriate for you.

 

[Sharper]

This would be purchasing directly from and financing through Disney itself. They will report the interest on a form 1098 or ? I also assume they will breakdown the annual fees to specify the amt. of taxes paid? Thanks!

 

[Firefighter Mickey]

If you finance thru DVC, they will send you a form 1098 for interest paid. Also, when you get your annual dues statement, the property tax portion will be broken out.

 

[Sharper]

Thanks for the help, guys!