Taxes?

[MagicDVC]

So since I sold a contract this year I can write off the difference? (next year)

Not a tax accountant, but only if you sold at a loss. We sold a CCV for a loss, so we were able to net zero. You can't deduct the loss since it's a vacation property.

Does that mean direct only? (not resale)

Also, it applies to direct and resale as long as it is a mortgage secured by the real property. monerafinancial.com and vacationclubloans.com write their loans as a mortgage secured by the real property.

 

[Anthony1971]

Losses from real property (houses, cars, vacation homes etc) are not Tax deductible. For personal use homes that meet the criteria as personal use profit of 250K for a single owner and 500K for are married owner are currently not taxed. Just sticking that in there to answer why you cannot write off a loss.

 

[Anthony1971]

As far as property taxes currently it is very difficult to deduct as you are limited to a 10K deduction for state taxes, property taxes, mortgage interest and more. In other words you would need to make up the difference to the current high standard deduction in charitable donations. This rule is set to expire in 2025 and the SALT deductions may return? In that case you may be able to exceed the standard deduction if you have a high income and pay a lot of state taxes, high property taxes, and or a large mortgage with a lot of interest paid or any combination that exceeds the standard deduction amount. If that happens you will have a better chance of getting a few dollar reduction in your taxes for the DVC proprty taxes.

 

[VGCgroupie]

Thought Id add on to this thread rather than starting a new one. I have no plans to try and write off any taxes for our DVC. But, my question is about selling. Does anyone know how it works when you sell as far as taxes go? Is it based solely off what you paid for the contract vs what you are selling it for or is it much more involved than that? Do they take into consideration monetary value of points used?

 

[Ralph&Pam]

Thought Id add on to this thread rather than starting a new one. I have no plans to try and write off any taxes for our DVC. But, my question is about selling. Does anyone know how it works when you sell as far as taxes go? Is it based solely off what you paid for the contract vs what you are selling it for or is it much more involved than that? Do they take into consideration monetary value of points used?

No, there is no consideration of the monetary value of points used, annual maintenance fees, etc. So, yes, it’s based off what you paid for the contract vs. what you are selling it for. Assuming the sales price less sales commission (the net proceeds of the sale) exceeds the purchase cost (points + one time closing costs) and they have been held for at least 12 months, it’s taxed as a capital gain. If there is a net loss, that is NOT deductable.

 

[VGCgroupie]

No, there is no consideration of the monetary value of points used, annual maintenance fees, etc. So, yes, it’s based off what you paid for the contract vs. what you are selling it for. Assuming the sales price less sales commission (the net proceeds of the sale) exceeds the purchase cost (points + one time closing costs) and they have been held for at least 12 months, it’s taxed as a capital gain. If there is a net loss, that is NOT deductable.

We would have it less than 12 months, there would be no gain.