Abound Trust Points and property taxes

[ljmiii]

I did my taxes yesterday and was once again surprised at the property tax portion of the Abound Trust MFs. My weeks are at resorts all over the US and based on their property taxes I would think the number of trust points I own would generate $200-$300 in property taxes.

Does anyone here who knows about such things know where those property taxes go...and what it is about the trust structure that 'washes' them out? TIA

 

[dioxide45]

These are just how the trust does the accounting for the maintenance fees of the weeks in the trust. The property taxes are just the taxes on the underlying property that is getting paid to the local counties for where the properties reside.

 

[Fasttr]

Here is the footnote from a prior year Trust budget for the Property Taxes line.

7) The estimated real estate taxes for the Association are projected to be $3,504,145. The real estate taxes are for the Marriott’s Newport Coast Villas, Marriott’s Timber Lodge at Lake Tahoe, Marriott’s Desert Springs Villas, Marriott’s Desert Springs Villas II, Marriott’s Shadow Ridge, Marriott’s Frenchman's Cove, The Ritz-Carlton Club, St. Thomas - Suites and Marriott’s Grand Residence Club Lake Tahoe Accommodations because the Component Expenses for California and U.S. Virgin Islands properties do not include real estate taxes. The Association will pay these property taxes to the appropriate taxing authority for the jurisdiction in which the California and U.S. Virgin Islands Accommodations are located.

 

[ljmiii]

...The property taxes are just the taxes on the underlying property...

That's my question because it doesn't appear to be true. The property tax on my Grande Vista deed worth 850 DPs is $122.54. KBC worth 1687 is $113.62. MOC worth 3737 is $284.22. Waiohai worth 2537 is $136.83. In total the property taxes on my deeded 8811 points is $657.21.

But the property taxes for 7000 Abound Trust Points was all of $18.48...not the $575.06 it should be. And that doesn't even take into account the fact that my deeds are all Platinum and the best view category at their resort...the average MF/DP for those resorts is much higher.

 

[Fasttr]

That's my question because it doesn't appear to be true. The property tax on my Grande Vista deed worth 850 DPs is $122.54. KBC worth 1687 is $113.62. MOC worth 3737 is $284.22. Waiohai worth 2537 is $136.83. In total the property taxes on my deeded 8811 points is $657.21.

But the property taxes for 7000 Abound Trust Points was all of $18.48...not the $575.06 it should be. And that doesn't even take into account the fact that my deeds are all Platinum and the best view category at their resort...the average MF/DP for those resorts is much higher.

Most prop taxes are included in the Component Expenses line on the budget. As posted above, it’s only the CA and USVI taxes that are specifically broken out as Prop Taxes for Trust points.

 

[dioxide45]

That's my question because it doesn't appear to be true. The property tax on my Grande Vista deed worth 850 DPs is $122.54. KBC worth 1687 is $113.62. MOC worth 3737 is $284.22. Waiohai worth 2537 is $136.83. In total the property taxes on my deeded 8811 points is $657.21.

But the property taxes for 7000 Abound Trust Points was all of $18.48...not the $575.06 it should be. And that doesn't even take into account the fact that my deeds are all Platinum and the best view category at their resort...the average MF/DP for those resorts is much higher.

Yeah, it looks like @Fasttr provided the correct explanation. The taxes on points is just for those properties where property taxes are billed separately.

 

[ljmiii]

Most prop taxes are included in the Component Expenses line on the budget...

Begging the question, were they "Taxes You Paid" (for the purposes of 1040 Schedule A?

 

[daviator]

Begging the question, were they "Taxes You Paid" (for the purposes of 1040 Schedule A?

You cannot (legally) deduct property taxes that you don't pay directly (or your lender pays via escrow account), or so I've been told by multiple tax professionals. So even deducting the property tax portion of the Abound MFs is legally dubious. Deducting a portion of maintenance fees at other properties that might represent part of the budget for property taxes is a step beyond that. It's all fine until you get audited.

The amount of property taxes I pay on my timeshare ownerships is not going to make enough difference in the taxes I owe to be worth the risk of being penalized (or having to WORRY about being audited and penalized) so I don't deduct them. I don't want to give the taxing authorities any reason to start digging into my returns, because if they find one thing, they'll assume there is more and keep digging, creating a mountain of work for me. Some people like to walk on the gray line, or on the far side of the gray line, and that's a personal decision, but just be aware that you're making it.

 

[ljmiii]

You cannot (legally) deduct property taxes that you don't pay directly…or so I've been told by multiple tax professionals…

That is indeed what I assumed. Yet another thing to like about owning weeks over points…