We did NOT do it! DVC here we come (soon), ROFR'D

[explorer1977]

Well yesterday we finally did it after waiting so long (we had to wait for our new house to close) and we put an offer in on a small 50 point contract at OKW through the TTS. Now the deposit money is sent and we just have to wait to see if it gets through ROFR. So I hope luck is with us but we paid a good price per point to get through but you never know what Disney will do.

Michael

Oh yeah and with the dollar so good we could not pass it up.

 

[Scratch42]

Good Luck!

 

[sean-1966]

Welcome home! It's nice to see other Canadians join DVC.

 

[Princess4Eeyore]

Way to go ... hope it works out great!!!

 

[U2FanHfx]

Hi All,

I was just about to make and offer last night when the resales guy told me about a VERY interesting 'added' expense, a 10% out of country tax. Has anyone else paid this? Do I have to pay Canadian tax on th;is property once I go to file my income taxes this year? Help greatly appreciated.

Regs,

CJM

 

[Scratch42]

Hi All,

I was just about to make and offer last night when the resales guy told me about a VERY interesting 'added' expense, a 10% out of country tax. Has anyone else paid this? Do I have to pay Canadian tax on th;is property once I go to file my income taxes this year? Help greatly appreciated.

Regs,

CJM

If you don't mind me asking, but who are you dealing with?

I don't remember of any such "Tax".

j

 

[U2FanHfx]

Hi Scratch,

I was dealing with Christie from TTS, however she wasn't in last night so Robert (?) helped me. I asked for a total before and didn't get that number included, so I asked the bank for a specific number. Unfortunately I now have to shell out another $1000 CDN if I want to join and it actually has made the DVC purchase less attactive. My fiance was all for this but she's now second guessing it I HATE taxes!!!

Regs,

CJM

 

[BitsnBearsMom]

I don't recall any such taxes. If they were there then I don't think I paid em but then again I did it right through Disney!! Don't even claim DVC on my income tax!

Good luck and hope we can welcome you home soon!

 

[U2FanHfx]

It was odd, because he said that it was a government tax for anyone that purchases outside of USA. Now the resale is less attractive than direct through Disney as you said.

Regs,

CJM

 

[cslittle999]

We didn't have any such fee when we purchased our BWV contract in March from another resale company. I would contact someone else at TTS and ask what the real story is.

 

[T.E. Yeary]

This Federal tax is only for DVC SELLERS residing outside of the United States! It would come out of their proceeds at closing. It does NOT affect the price of the property to the purchaser, regardless of where he resides. I don't know how this misunderstanding came about, but it will be addressed. Thank you for bringing it to the attention of this board.

Best wishes,
Tom

 

[U2FanHfx]

Hi All,

Thank you for all your input and Tom from TTS did get back to me. The fact is that a out of country seller pays that tax, not a buyer. This is great news and I will be making a call today to my rep at TTS

Hopefully we will be 'Welcomed Home' soon!

Regs,

CJM

 

[Scratch42]

Thanks Tom!

I didn't think that I paid such a tax!

And hope not to!

 

[T.E. Yeary]

Thank you for seeking advice on the boards. I'm just glad I was monitoring so I could catch it. That's one of the main reasons I do it!

We really do appreciate your doing business with us!!


HAPPY "MAGICAL" VACATIONING,
Tom & Staff

 

[lisaviolet]

This Federal tax is only for DVC SELLERS residing outside of the United States! It would come out of their proceeds at closing. It does NOT affect the price of the property to the purchaser, regardless of where he resides. I don't know how this misunderstanding came about, but it will be addressed. Thank you for bringing it to the attention of this board.

Best wishes,
Tom

DVC contracts sold in the US by US brokers only? Or because DVC is an American company is this 10% tax on all contracts sold regardless of where they are sold? Ie. If a Canadian sold to a Canadian in Canada is the contract still taxed?

And congratulations to the OP....you are going to love it.

Lisa

 

[explorer1977]

Well we just heard that Disney has decided to ROFR'D the contract so oh well. A 50 point contract at Okw got through the other day at $92.50 with the seller paying 06 dues and closing cost. I was paying 06 dues and closing cost so the total per point was $95.66. We will just have to try again really soon with some different numbers. We werekind of expecting it oncw we saw what the other went for. Just can't wait to try again.

And thank you to eveyone

Michael

 

[Scratch42]

So sorry to hear this.

Better Luck Next Time!

j

 

[lisaviolet]

So sorry Michael....

Fingers crossed for the next one.

Lisa

 

[U2FanHfx]

Good luck on the next one!

Regs,

CJM

 

[T.E. Yeary]

Lisa- The tax is paid on all US property sold by a seller living outside the US. When that US property is sold to ANYONE the tax is owed by the seller to the United States IRS.

That's the law! We all probably hear stories of where so & so sold to his neighbor and didn't pay it. If that is the case, THEY BROKE THE LAW!!

The repurcussions can be that the IRS, when they find out about so & so not paying it, will go after the seller for the money. Just try to get a seller to come up with money they've already spent, or one that has moved to another country and can't be found!! The one thing that stays the same is the property itself, it's NOT going anywhere. If they cannot get the money from the seller they could I suppose come after the purchaser. They can put a lien on the property itself. Now the new purchaser doesn't want to pay it either so if he ever wants to sell, guess what, he must pay off the lien in order to pass a clear title and he will also owe his own 10% if he is not a US citizen, or risk doing the same thing to another buyer.

It's a real bag of worms but the nice thing about the DVC property is that in most cases it has gone up in value, so even after paying 10% they are usually ahead of the game.

I have instructed the TTS staff to inform a foreign seller upfront about this tax BEFORE he lists his property. Otherwise it can be a very unpleasant surprise for the seller! In some cases, deals, time and money are lost because of it.

When Disney ROFR's a sale and therefore does the closing, they also will take the tax out of the foreign sellers proceeds, because it is the law.

Keep in mind, I am NOT a lawyer and don't profess to know everything there is to know about this situation. I am only sharing with you what I have learned over the years and believe to be true.

Best wishes,
Tom