What ???'s should I be asking?

[sweetinmaine]

We've received our information packet, read through these threads, "asked Jeeves" and watched the DVD on the DVC. Everything looks so right for us to join. Are we looking through rose-colored glasses? Are there questions that I should be thinking about? I think we're ready to go with this. Is there a downside that we are missing?

Your opinions are most welcome. I think Monday I'll be calling Bernard!

BTW, is the interest considered mortgage interest making it tax deductible?

Thank you in advance for your advice!

 

[paslea_pooh]

I was told by our DVC guide that it is and they send you a special form at the end of the year with all the interest you've paid on your loan. We are paying it off with a home equity with a much better rate than 9.75 so it'll definetely be tax deductible then.

Alida


Does the tag fairy live at Cinderella's Castle???

 

[sweetinmaine]

Alida, you have been so helpful already! Thank you for answering these last few questions. I know we're ready!

 

[Caskbill]

Interest is deductible but with some conditions.

1. The loan must be secured by real estate. If you finance through Disney, than that's covered. Also if you use a Home Equity loan, that's covered. If you finance other ways, such as a non-secured personal loan, then the interest is not deductible. Just like it's not deductible for interest on a credit card, or car loan, etc.

2. I'm not certain if this is still true, but in the past you could only deduct interest on a maximum of 2 loans. Your primary residence mortgage would be one. Other things that count would be a fully equipped RV or a fully self-contained boat (sleeping, eating, bathroom), a cabin in the woods, or any other type of vacation home, or a home equity loan. If you're already deducting interest on two items, then you might not be able to do Disney as a 3rd.

Check with your tax advisor to be sure. While everyone here tries to give good advice, keep in mind all advice received here is only worth what you actually paid for it...

For your other question, the downside is you'll soon discover that you didn't buy enough points, and that you didn't buy 13 years ago.

It sounds like you've done your homework. If you have any specific questions be sure to ask.

Welcome Home!

 

[winjos]

Here's my 2 cents:

Disney sends us a special 1099 (I think that's the number) that states what we have paid in interest, and our CPA uses it as a deduction. On his form is space for 2 types of home loan interest, so I think Caskbill is right on.

Bernard is great. He's our guide and he is very nice, very helpful, and always leaves us a terrific message when we are at WDW. He rocks!! He even tried to get us a "special" deal with our add on, however the state of California was exempt. Oh well! So, you might want if your state has any limitations.

Good luck on your decision! Once you become DVC, it's the only way to be!

 

[sweetinmaine]

Thanks Caskbill and Winjos for your responses..

If Bernard were in his office today, I'd be calling him
We've made our decision and are really looking forward to the DVC!

 

[crisi]

Also, if you are fortunate enough to make a lot of money, itemized deductions are eventually capped. So deductability may not make any difference.

Oh, the most frequent complaints, and my editorial comments:

1. Perks. Don't join DVC for any current or future perks. Right now we have a nice AP discount, but it won't last forever. Perks are subject to change and being a DVC member does not ENTITLE you to great discounts. This includes using MS as your travel agent - you'll do better on your own.

2. Non-Smoking and non-HC are currently not guarentees. This doesn't mean you will request non-smoking and get smoking all the time, but it does mean it can happen. If this will break your vacation, you may be happier continuing to pay cash where you can walk away from the transaction.

3. Trade outs aren't good values. They aren't. Don't buy DVC to cruise to or trade and expect it to be a bargain.

4. Cast members don't treat DVC members the same, the rooms aren't as clean, etc. This hasn't been our own experience, and I can't speak to the experience of others. When this board has polled this issue in the past, most people seem to feel DVC is on par with the hotels in these respects - a few don't - some of them have been very vocal.