Tax implications for DVC Ownership and Ohio

[disgoat]

Hi,

I've read on here that it might be possible to deduct some of the interest and portions of the m fees off my taxes?

That sound right to people? I'm in Ohio if anyone thinks that matters...

Any suggestions/ideas there on whether there's any added tax benefit to owning DVC and if so, anything specific as far as how the m fees break down and how much you can claim and the interest that can be claimed if it's possible to claim the interest from financing the purchase.

Thanks,

Chris

 

[JaxFLBear]

Each persons tax situation is different but you might be able to deduct the property tax portion of the annual dues and any mortgage interest. If you finance direct from DVC, you will receive a 1099 for mortgage interest paid. Property taxes will have to taken from the annual statement.

You should alway contact a tax professional to make certain.

 

[disgoat]

Right right on consulting tax professional.

Just curious if anyone else could shed light on how much of the annual dues are something that can be deducted...

Also if the interest paid to Disney if the full amount of interest on the financed purchase gets to be counted just like mortgage interest etc...

Thanks,

Chris

 

[hellerjw]

I believe the property tax portion of the annual dues (which is a very small part of it) is deductible. They break it out on your annual dues statement.

Also, if you finance with Disney then the loan interest can be deducted in most cases, just like a second home. This is one of the major advantages of financing with Disney. The loan is also handled in house by Disney and doesn't show up on your credit report (another bonus).

Others have also used a home equity loan/line of credit to pay for DVC and deduct the interest that way.

Like everyone mentions you will need to check with your tax advisor on how this applies to your particular situation.

 

[JaxFLBear]

The estimated 2008 property taxes for AKV are .9725 a point. Totals dues for 2008 are $4.74 per point.

 

[amandelba]

Insert usual caveats here re: everyone's tax situation is different, consult a licensed tax professional, etc.

My understanding of the tax laws is as follows:
Assuming that you only own 1 home, you may treat this as a second home and deduct the interest on your loan from your taxes; provided however that this loan is secured by the real property (e.g., financing directly from Disney or granting a mortgage on the real estate) and not some other loan (e.g., credit card, private loan, etc.).

Additionally, you may deduct that portion of the annual dues allocated to real estate taxes. This amount will likely fluctuate over time.

I am not familiar with the tax laws of the state of Ohio, so I won't even guess.

Hope this helps.

 

[salmoneous]

Just curious if anyone else could shed light on how much of the annual dues are something that can be deducted...

I don't have the numbers in front of me, but ballpark, a little less than $1/point of my $4-5/point maintenance fees went for property taxes last year.

 

[disgoat]

Thanks for the quick replies

 

[Thumper4me]

I live in Ohio. In my current tax situation, I deduct the property tax and home equity loan interest when I itemize my deductions. There is no effect on your Ohio return. I hope this helps.

Kelly

 

[JerJan]

I too always deduct my property taxes on an annual basus. I live in Ohio.

 

[Dean]

Insert usual caveats here re: everyone's tax situation is different, consult a licensed tax professional, etc.

My understanding of the tax laws is as follows:
Assuming that you only own 1 home, you may treat this as a second home and deduct the interest on your loan from your taxes; provided however that this loan is secured by the real property (e.g., financing directly from Disney or granting a mortgage on the real estate) and not some other loan (e.g., credit card, private loan, etc.).

Additionally, you may deduct that portion of the annual dues allocated to real estate taxes. This amount will likely fluctuate over time.

I am not familiar with the tax laws of the state of Ohio, so I won't even guess.

Hope this helps.

This is my understanding as well. You can only do two including primary. The rules do make it so that loans done through third parties to buy a timeshare (such as Tammac or similar) would not count nor would a low interest CC used to pay for DVC. The other caveat is that one has to be able to benefit from itemizing, something that's getting harder to do it seems.

 

[salmoneous]

Assuming that you only own 1 home, you may treat this as a second home and deduct the interest on your loan from your taxes; provided however that this loan is secured by the real property (e.g., financing directly from Disney or granting a mortgage on the real estate) and not some other loan (e.g., credit card, private loan, etc.).

Interest from a home equity loan secured by your primary residence could also be deductible.... see disclaimers above about seeing an actual adviser, don't trust tax advice you get on the internet, etc.