Tax Question

[Maistre Gracey]

We currently have four DVC contracts (two VWL, and two VB).
My question: Are all four contracts together considered "one" second home, or does the IRS consider this four more homes?
Perhaps the IRS will look at the two VWL contracts as one home, and the two VB as one home?
I hope I am making myself clear.
Thanks for your replies!

 

[RobDoc]

You should probably consult your tax advisor for the best answer for your situation.

If all contracts are owned at one home resort, you can likely defend a challenge by the IRS as owning a single "second" home.

I have 2 home resorts and have lumped them together in my own mind and present them as Disney Vacation Club on my 1040. Thus far I've not been challenged on that practice and would make a valiant defense if needed. I am comfortable with the possibility that it could be challenged and am willing to accept that risk.

With all deductions on a tax return, have plenty of documentation, all needed records and an attitude not to exceed your own comfort level. Claiming DVC is probably the riskiest entry on my return and I still realize that it could be challenged.

If you are likely to be audited and have a low level of anxiety tolerance, maybe claiming more than one resort is a risk you don''t want. The only way to know the actual answer to your question is to go through an audit and see what is allowed!

Good Luck!

 

[Maistre Gracey]

Thanx, Doc.
How others that have more than one home resort handle it, is exactly what I wanted to know. I too am comfortable presenting VWL & VB as one DVC home. I think my tax guy will buy off on that as well.