DisneySteelersfan
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- Jul 11, 2020
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- DVC
Have been researching which ways people have claimed DVC (Disney Vacation Club) on their tax returns as rental income.
First the rule in regards to the 15 days personal use and less than 15 days rental not being required to pay income tax. Would this apply to Disney Vacation Club as this is a point based system? How would you justify this as each size room is different point basis so you could use a studio for 15 days personally but rent out a grand villa for less than 15 days with no income tax?
Second, How have people depreciated the initial purchase cost? Most real estate was based upon 27.5 years , however does this apply to DVC as well as it seems this is more of a point lease type contract. If you were to use the 27.5 year depreciation, How would you depreciate the contracts that are less than 27.5 years long? I was thinking would it be possible to depreciate it based upon a point less for example if you were to buy a 50 year contract at 100 per point you would be able to include 2 dollars per point in the cost to deduct against the income. Maintenance dues would be the only significant deduction against rental income on the property unless I am missing something.
Third, How have people handled the rental income of banked point contract purchases as if you were to rent all of the points out the first year it would be significant income against minimal depreciation. Is there any logic to put the banked points against the purchase price the first year if rented out as banked points are part of what is included with the contract initially?
I know there will be different opinions on what can be done and asking for tax advice on a public forum isn't a good idea, however just trying to see if anyone has any experience with this or any ideas. This is quite new territory for my CPA and I have searched online pretty thoroughly without much clarity.
Thank you
First the rule in regards to the 15 days personal use and less than 15 days rental not being required to pay income tax. Would this apply to Disney Vacation Club as this is a point based system? How would you justify this as each size room is different point basis so you could use a studio for 15 days personally but rent out a grand villa for less than 15 days with no income tax?
Second, How have people depreciated the initial purchase cost? Most real estate was based upon 27.5 years , however does this apply to DVC as well as it seems this is more of a point lease type contract. If you were to use the 27.5 year depreciation, How would you depreciate the contracts that are less than 27.5 years long? I was thinking would it be possible to depreciate it based upon a point less for example if you were to buy a 50 year contract at 100 per point you would be able to include 2 dollars per point in the cost to deduct against the income. Maintenance dues would be the only significant deduction against rental income on the property unless I am missing something.
Third, How have people handled the rental income of banked point contract purchases as if you were to rent all of the points out the first year it would be significant income against minimal depreciation. Is there any logic to put the banked points against the purchase price the first year if rented out as banked points are part of what is included with the contract initially?
I know there will be different opinions on what can be done and asking for tax advice on a public forum isn't a good idea, however just trying to see if anyone has any experience with this or any ideas. This is quite new territory for my CPA and I have searched online pretty thoroughly without much clarity.
Thank you
