Taxes and Mortgage Interest

[katybug34]

If you finance directly through Disney, what portion of your taxes and mortgage interest are tax deductible if any. We do not own a second or vacation home.

Thanks!

 

[DVCGeek]

I'm not an accountant, but 100% of your Disney mortgage interest is usually tax deductible because the DVC property IS your second/vacation home (assuming you itemize your U.S. federal taxes) and the property taxes should always be. Here in OH I don't think I get any state or city deductions for anything DVC related, no idea how other areas handle it.

However, you have multiple DVC loans out the mortgage interest may get sticky because I think the IRS limits your deductions to two "homes" (primary & second/vacation) in any given year. Unless all your contracts are for the same Unit of the same resort, the IRS may consider them different homes.

Property tax deductions don't have this limited count, so ALL your contracts should be deductible.

Hope that helps!

 

[erionm]

If you paid any mortgage interest in 2010, Disney will send you a form 1098. For the property taxes, you will need to use the 2010 Actual Property Tax amount from your 2011 Annual Dues Statement.

 

[PoohNFriends]

If you paid any mortgage interest in 2010, Disney will send you a form 1098. For the property taxes, you will need to use the 2010 Actual Property Tax amount from your 2011 Annual Dues Statement.

Thanks for this info, one more question for you or someone who might be able to help. Since the 2010 actual property tax amount is not sent to us on a 1098 do I report that as "other real estate taxes paid" (these boxes are below the 1098 property tax box I which I would report my home property taxes)? Also, would I list my 2 Disney property taxes separately or as 1 total number?
I haven't started my taxes yet, just things I'm thinking about as I gather everything together.

 

[erionm]

Thanks for this info, one more question for you or someone who might be able to help. Since the 2010 actual property tax amount is not sent to us on a 1098 do I report that as "other real estate taxes paid" (these boxes are below the 1098 property tax box I which I would report my home property taxes)? Also, would I list my 2 Disney property taxes separately or as 1 total number?
I haven't started my taxes yet, just things I'm thinking about as I gather everything together.

The form 1098 is for mortgage interest. Some lenders may list property taxes on the 1098, there is no federal requirement to do so. If you can report them, they would be included with your other property taxes paid.

 

[rhax07]

I just wanted to thank you all for contributing to this post. I would've never thought that my DVC mortgage would count as a second/vacation property. That just might be the items I need to bump me over the standard deduction this year. Thanks again for the information.