Trading/Selling and Repurchasing Contracts to Optimize UY

[shaunacb]

COVID has put the advantage of a good UY in perspective. My June VGC UY is not ideal as we would never travel in the summer. October would be perfect. Has anyone ever sold and immediately repurchased to optimize UY? What financial disadvantage comes with that? I imagine it would be commission to the broker, and tax implications? (I am Canadian and would have a significant gain on my sale.) I purchased 160 points in 2016 for $140, added on 50 points direct in 2018, and VGC now goes for $200ish. Has anyone ever found another owner to "trade" contracts to get a better UY without money changing hands?

 

[Cyberc1978]

You would need to obtain an ITIN number too and get a firpta agent to file the correct tax for you that would add around $400 to the cost.

also the firpta tax is 15% of you gains. On top you need to add closing costs for the new contract.

You can’t trade your contract like that. When the contract goes to ROFR you need to put a price on it as Disney otherwise wouldn’t know if they want to buy back the contract or not.

 

[Where'sPiglet?]

Another consideration is that your resale points were purchased before the early 2019 (was it that long ago?) change that limits resale points from being used at new resorts.

 

[shaunacb]

Good points. I didn't realize that "trading" a contract would require ROFR. I already have an ITIN from when I purchased AUL (different UY) from an international seller, but it sounds like the gain would have a significant tax implication... Also you are right - I can book Riviera and the new Disneyland DVC using my current contract, but not if I sell and repurchase. I guess it makes the most sense to keep what I have, try not to bank/borrow, and travel as early in my UY as possible before my banking deadline. And hope COVID settles down and this doesn't happen again in my lifetime! Thanks