Tax Implications?

[ThreeTiggers]

Are there any tax related things I should think about for DVC property? I assume that I can deduct from my Federal Income tax the amount in the MF that's considered Property tax. Also, do people that rent points have to claim that as income? Can they offset it by using the MF as an expense? Is there anything else?

 

[tjkraz]

Are there any tax related things I should think about for DVC property? I assume that I can deduct from my Federal Income tax the amount in the MF that's considered Property tax.

Correct. Most who finance the purchase can also deduct the interest paid.

Also, do people that rent points have to claim that as income?

If it walks like a duck and quacks like a duck...

Rental income is taxable just like most other forms of income.

Can they offset it by using the MF as an expense?

Correct. One could also deduct any other expenses that directly relate to the rental of the points (advertising, eBay fees, telephone charges, etc.)