I think it is only applicable if you are renting points. Even then it’s not the whole amount paid on the contract. I’m not a CPA though so I don’t know the ins and outs.
Your real estate taxes for DVC properties can be used as an itemized deductible expense, along with other itemized deductions, if not using the standard deduction. Mortgage interest on your timeshare can also be used as an itemized deduction but, for that one, you can only deduct two properties that you own, your residence and another.
If you rent the timeshare, the percentage of property taxes applicable to the points used for the rental can be deducted as a rental expense, but only if you are not also using them as part of your itemized deductions, i.e., you can deduct them as a rental expense if you use the standard deduction, but you do not get to both use them as an itemized deduction and a rental expense deduction.
Thank you. What I thought. I used to jot down the "real estate" taxes "just in case". Standardized deduction here for so many years. All points bought outright so no loan/interest there either.
Just a cautionary comment. If not renting your timeshare. My comment is not about what is tax deductible now but what can be added to the cost basis of the time share if you sell the timeshare for a gain. Selling for a loss is not deductible. Keep your annual dues statements in a safe place. Do not rely on DVC to be able to provide every annual statement while you were a member. The portion of the annual dues listed as Reserves can be added to the cost basis in the event you sell the timeshare and need to calculate your gain on the sale.
We purchased in 1999 and I did not initially keep copies of every annual statement to figure basis. On the DVC website the annual statement only go back as far as 2014. Should we sell in the near future we would most likely still have a gain that could be offset by the annual Reserve portion of the dues.