taxes regarding renting DVC

[melodyka]

I have a few questions for those that rent out DVC points:

1. is the income considered regular income & therefore taxable? I assume yes.

2. do you charge FL sales tax/resort tax?

3. If you go through a broker like David's, does he send a 1099 or similar? Does he charge sales tax?


Thank you

 

[drusba]

1. Yes it is income.

2. Legally, the purchaser is supposed to pay the taxes and the one renting the unit is supposed to charge the tax and collect it and then turn it over to the government agencies that are entitled to the tax. Whether most who do a rental actually do that is subject to question.

3. Don't know and not sure he is supposed to Issue a 1099 (he is a person you hire and to whom you pay money, a portion of the rental you get, and thus it would seem the need for issuing a 1099 may be the other way around). Also do not know as to tax.

 

[melodyka]

thanks for your help!

 

[MrShiny]

If you claim it as income, you could probably also claim expenses (such as dues) to offset, but consult a tax professional.

 

[Niagara2]

David's is in Canada. They do not issue 1099's to people in the USA.