Taxes

[nicki.momof3]

When you purchase DVC do you have to claim the purchase or taxes on your taxes?

 

[erionm]

Depending on your tax situation, you might be able to deduct the ad valorem (property tax) portion of annual dues. If you financed with DVD, you might also be able to deduct the mortgage interest.

 

[OKW Lover]

When you purchase DVC do you have to claim the purchase or taxes on your taxes?

First a disclaimer; I'm not a tax accountant, nor do I play one on TV.

There is nothing to claim on income taxes when you purchase DVC (or any other real estate interest). Depending on your tax situation, you may be able to claim mortgage interest or property taxes as a deduction on your income taxes.

 

[chalee94]

there is nothing to claim on a purchase of DVC, but if you SELL DVC and have a gain, you would most likely need to pay taxes on the capital gain.

if you sell at a loss (much more common), you cannot deduct the loss on your taxes.

 

[disneynutz]

When you purchase DVC do you have to claim the purchase or taxes on your taxes?

If you are a resident of a country other than the US, I am pretty sure that the purchase has to be reported to the IRS.

Bill

 

[peace_all]

If you are a resident of a country other than the US, I am pretty sure that the purchase has to be reported to the IRS.

Bill

For non-us, I don't believe you have to, unless you are a US Citizen (or hold a green card), reside more than 120 days in the US or are employed and paid by a US based corp. As long as you do not have rental income from renting it out 15 days or more.

However, upon sale, it is to be reported to the IRS, and is subject to withholdings.

Also if you are a non-resident, you are subject to estate tax if your US real estate holdings are over US$60,000. Exemption is based on tax treaties, if existent.

I do not specialize in US taxation, or cross boarder, so this is a heads-up, in reality a tax consultant should be advised.

 

[lgpav1]

Here is what the IRS Says about deducting timeshare costs:

Time-sharing arrangements. You can treat a home you own under a time-sharing plan as a qualified home if it meets all the requirements. A time-sharing plan is an arrangement between two or more people that limits each person's interest in the home or right to use it to a certain part of the year.

 

[supersnoop]

Here is what the IRS Says about deducting timeshare costs:

Time-sharing arrangements. You can treat a home you own under a time-sharing plan as a qualified home if it meets all the requirements. A time-sharing plan is an arrangement between two or more people that limits each person's interest in the home or right to use it to a certain part of the year.

But you can only deduct taxes and interest on your primary and second home. So, if you already own a second home, or you own multiple timeshares, you don't get to deduct them all.

 

[chalee94]

But you can only deduct taxes and interest on your primary and second home. So, if you already own a second home, or you own multiple timeshares, you don't get to deduct them all.

Pretty sure real estate taxes paid during the year are tax-deductible. You are not limited to two homes as in the mortgage interest deduction.

 

[supersnoop]

Pretty sure real estate taxes paid during the year are tax-deductible. You are not limited to two homes as in the mortgage interest deduction.

See, all the more reason to seek professional help. You're correct, all property taxes are deductible in the year they're paid by the person who paid them, irrespective of ownership.