Taxes help?!

[hawaiiandisneymom]

Hi, since we bought in this year, this is all new to me, when it comes to claiming it on our tax returns. What is the description of the DVC rental property? i.e. villa, condo, duplex, etc.? And what about the annual dues? Are those tax deductible or are they included in the total mortgage interest on our 1098? Any help/answers are needed! Thanks in advance! Tanya in CA

 

[iloveokw]

The only thing we can list on our taxes are the real estate taxes which is a small fraction of the annual dues.

 

[mgroshans]

we only deducted the interest we paid. it is considered a "mortgage". we put it in the same spot as we put our interest we paid on our house. as far as the dues, i don't think you can deduct those, but someone else might be able to tell you for sure. we didn't pay dues yet, since we just bought into AKK last august and they aren't open yet.

 

[hawaiiandisneymom]

Thanks all!

 

[hawaiiandisneymom]

What is our ownership percentage? 10%, 50%?

 

[Kiderak]

What is our ownership percentage? 10%, 50%?

That would be on the closing paperwork you have. Usually a fraction of a percent.

 

[mgroshans]

look on your closing papers, without looking, i want to say something like 0.005, but not for certain.

 

[hawaiiandisneymom]

Mahalo!!

 

[hawaiiandisneymom]

ok, one more question fellow DVC'ers-TurboTax is asking about the amount I paid (financed) for the rental property. Have any of you bought BLT in 2008 and claimed that on your 2008 taxes? I also bought SSR in Jan 08 and have received a 1098 for that, but none for BLT because the first payment was deducted in Jan 09. But, here's the tricky part, we applied for financing and closed in 2008 for BLT. Do I add SSR's loan with BLT's loan and put that into Turbo Tax, or since no loan payments were taken out for BLT til 2009, should I just put in SSR's? Sorry if I'm not clear and confusing all of you, I'm confusing myself...lol! Thanks again in advance!

 

[erionm]

I don't think you can list your DVC ownership as rental property. You don't own 100% of it and you are not renting it to someone else.

For the mortgage interest, you only use what was paid during the tax year. Since your BLT loans first payment was in 2009, you will have to wait until you file your 2009 tax return.

 

[Kiderak]

Here in NY I can claim it as a vacation property and then claim the property taxes and interest paid on the "mortgage".

To work it as a rental property, I would suggest going to a tax profesional.

-shaka-

 

[vicki_c]

I was just reading the tax code when doing my taxes last week (for this same reason) and while I am not a tax professional, it did not seem to me that you could claim it as a rental property.

I deducted the taxes paid ($42!) and my mortgage interest from my loan.

 

[PrincessDuck]

It should be considered a second home/vacation home. You should be able to claim interest if it is financed and taxes paid.

 

[Cruelladeville]

You can claim the interest on the loan, and the taxes paid. You will find the taxes listed on the dues statement, and DVC should have sent you at 1099 statement with the amount of interest listed for the loan for 2008.