Tax time is here, how do you declare DVC?

[Rainman]

How do we find our how much we have paid in real estate taxes. ???

 

[tor]

The taxes for last year should be listed on your dues statement you just got in the mail

 

[Divamomto3]

The taxes for last year should be listed on your dues statement you just got in the mail

Aside from that, I also got a separate thing in the mail with "Important Tax Document" printed on the envelope like you get from the bank. Inside is the Form 1098.

 

[Doctor P]

Aside from that, I also got a separate thing in the mail with "Important Tax Document" printed on the envelope like you get from the bank. Inside is the Form 1098.

You only get this form if you have a loan from Disney.

 

[Good Ol Gal]

Aside from that, I also got a separate thing in the mail with "Important Tax Document" printed on the envelope like you get from the bank. Inside is the Form 1098.

and it doesn't include any real estate or property taxes paid.. only interest.

 

[DVC-Don]

Ours are paid off, but we are able to deduct the property tax portion.

 

[momsgoofy]

Obviously you mean on your Illinois State Income tax form.

Where you live has nothing to do with having the deduction for your Federal Income tax, so if otherwise eligible, you can still declare it on Federal.

I completely wasn't thinking here...I knew the friend that has been DVC members forever told us that they had taken off the purchase...whatever part that is allowed...all those years ago...now I realize what they meant specifically. I've just gotta take the paperwork to the CPA and let him deal with it...that is why we pay him...love our CPA! Thanks for the info!

 

[SyrCinderella]

This is our first tax season with DVC. We got the 1099 for Mortgage Interest which is straightforward, but how do you calculate (and find) the amount of Property Taxes paid with your dues?

 

[MrShiny]

On your annual dues, there will be 2 lines (check with your tax pro on which to use)

XXX 2005 Property Tax - Actual
XXX 2005 Less Estimate you paid

where XXX is the code for your resort.

You can also see this online.

 

[Doctor P]

Keep in mind that if you got a "credit" for your 2005 dues or didn't pay them, then you can't claim the taxes. Seems obvious, but there are a lot of people that get tripped up on this when they close on a house.

 

[tor]

you should use the actual because the left over estimated gets moved into the new year dues as a prepayment

 

[Good Ol Gal]

On your annual dues, there will be 2 lines (check with your tax pro on which to use)

XXX 2005 Property Tax - Actual
XXX 2005 Less Estimate you paid

where XXX is the code for your resort.

You can also see this online.

you should use the actual because the left over estimated gets moved into the new year dues as a prepayment

well we figure to use the "Estimate you paid" .... after all that is what we paid in 2005. The difference will be paid in 2006.

 

[PinMan]

is dvc considered an asset ? after 40 years you own nothing, if you fill out a loan app. would you list it as an asset ? value ? i'm filling out for colledge loans.

 

[Doctor P]

well we figure to use the "Estimate you paid" .... after all that is what we paid in 2005. The difference will be paid in 2006.

I will just tell you that that is the incorrect number to use. You must use the figure of the taxes that were actually paid. There is no ambiguity about this. It's just like an escrow account on a home mortgage if you want to think about it that way. That is part of the reason why they settle up with you right away in January.

 

[Doctor P]

is dvc considered an asset ? after 40 years you own nothing, if you fill out a loan app. would you list it as an asset ? value ? i'm filling out for colledge loans.

For college financial aid forms, DVC is generally to be reported as an asset (I looked this up last week when it became an issue in another thread). You can deduct any loan amount owed to get the net value of the asset.

 

[Good Ol Gal]

I will just tell you that that is the incorrect number to use. You must use the figure of the taxes that were actually paid. There is no ambiguity about this. It's just like an escrow account on a home mortgage if you want to think about it that way. That is part of the reason why they settle up with you right away in January.

ok... I guess I'm wrong but it doesn't make sense to me...

I am planning on using the part that says "estimate YOU PAID"

That is the part I actually paid in 2005 right.. the difference will be paid by me in 2006 right??

 

[Doctor P]

ok... I guess I'm wrong but it doesn't make sense to me...

I am planning on using the part that says "estimate YOU PAID"

That is the part I actually paid in 2005 right.. the difference will be paid by me in 2006 right??

Consult your tax adviser, but my answer would be that this is just like an escrow situation with a mortgage. You prepaid an amount in that was to go toward the property taxes. After settling up and after paying the bill for you, they determine that you need to pay more to make up for the shortage. The tax bill got paid in full in 2005 and you were legally responsible for it in 2005. DVC fronted you the money (or took it out of your dues) and you are just paying them back. Think about it in reverse--if you paid too much in for estimated property taxes, there is no way in the world that you would be able to claim the overestimated payment on the earlier year's taxes. You claim the ACTUAL taxes paid on the property each year. You are not paying the difference in taxes in 2006--you are paying DVC back for paying the taxes out of other parts of your dues.

 

[Good Ol Gal]

ok... I understand now!! I'm paying DVC back for the taxes..gotcha

thanks Doctor P for being patient with me :

 

[tmt martins]

Can I use it as Medical deduction

I'm slowly becomeing depentent on it and it does make me feel better.