Tax write off

[kcmyluv]

Hi everyone!
I heard that the annual dues are a tax write off. Can anyone tell me if this is true, does it work the same way as an interest write off for your house?

 

[JimC]

The only portion of the annual dues that could be a schedule A deduction would be the portion that represents real estate taxes. Your annual dues statement will break that out and there is often an adjustment the following year to reflect the actual taxes paid.

 

[PamOKW]

If you are financing the loan to actually buy DVC you may be able to treat that as mortgage interest. DVC suggests contacting your tax advisor.

 

[Pa@okw95]

I don't believe you can deduct the interest on a second home. Plus with DVC you are just leasing points not really buying a home. The tax portion of the annual dues can be deducted.

 

[crisi]

Talk to your tax advisor. If you don't have a tax advisor, do a search on the IRS web site and start reading (and trying to make sense of it).

The property tax portion of the dues are "probably" deductible, but there are restrictions.

The interest on your loan MAY be deductible, but the restrictions on that are even more complicated.