Tax question

[figment795]

For those of you that have multiple contracts, can you take off all your loan interest even with add ons. For example I have 3 contracts at SSR and now one with BLT. Can I take off all interest on each loan? Has anyone else run into this as well.

 

[RobDoc]

You should check with your tax advisor since the answer may vary depending on your personal situation. I know that many have deducted the interest expense for all DVC mortgage payments combined.

 

[CarolA]

I agree with Doc. I spent some time researching this for someone and really it's hard to tell what the IRS would allow from the regulations. (There's probably a case out there, but I am not a registered agent and I was not that dedicated) I told my friend to either use her best judgement or find a real tax accountant LOL!

 

[figment795]

thank you

 

[DisneyWalker44]

Yes, other people have run into the problem. The problem is the law limits the number of homes from which you can deduct interest. If you have multiple DVC contracts, is that one home or many? Nobody knows. I don't believe any of us are aware of any case where the IRS has given a ruling, or a disqualified a deduction on this issue.

While it's always a good idea to consult a qualified tax adviser for your personal situation, your adviser won't know the answer either. If she's aggressive, she will say take the deduction until the IRS says you can't. If she's cautious, she will say don't do anything that isn't specifically allowed. It all depends upon your adviser - or your attitude when selecting an adviser.

 

[CarolA]

One other caveat. If you did NOT finance via Disney or a home equity loan. It's probably NOT deductible. My first re-sale purchase I financed via the TSS (I found what I wanted about 3 months before I wanted to cash in some stuff so.... I just paid interest for a while) That was a personal loan not secured by the real estate so no deduction. Same would be true for using a low interest credit card for example. Home equity would depend on your situation and since I have never had one I don't have a clue!

 

[Caskbill]

Keep in mind that being able to deduct the interest for 'vacation' homes also includes RV's and boats (if they have sleeping/cooking/bath facilities) as well as timeshares, vacation homes, cabins, etc.

Just speculating but I would think if someone owns more than one DVC that is not an add-on but is a separate use year, thus a separate membership number, then they would count as separate entities. A true Add-On shares the same contract so I would think all Master Contracts + Add-On's would count as a single entity.

Of course always consult a professional tax advisor or the IRS directly.

 

[Nparrotte]

For those of you that have multiple contracts, can you take off all your loan interest even with add ons. For example I have 3 contracts at SSR and now one with BLT. Can I take off all interest on each loan? Has anyone else run into this as well.

I also have multiple contracts and they are financed through DVC so I deduct all of the interest. I have not run into any problems as of yet.

As suggested consult a tax professional in your area.