Fact or Fiction

[budmeyer12]

We recently attended a Marriott presentation where we were told several things we had not heard before.
1. That Premier Plus owners were getting their own web site with new log in info and this site would perhaps have a little different inventory to look at amoung other things.
2. That due to recent tax law changes made by Obama that we could claim our timeshare interest...new purchases only....as a 2nd home......additionally..if we were to transfer our timeshare interest into our small corporation we could depreciate that cost.
3.That Marriott was coming out with a "buy back program" this year that would buy back trust points at 60-70% of value.....didnt say how that would be done......and didnt think to ask either.
4. That our trust points dont expire....and of course they dont if you trade for Marriott reward points....and that they are extending that time to 6 month after your use year begans

FACT OR FICTION

 

[dioxide45]

We recently attended a Marriott presentation where we were told several things we had not heard before.
1. That Premier Plus owners were getting their own web site with new log in info and this site would perhaps have a little different inventory to look at amoung other things.

Perhaps it should, Premier Plus (and Premier) owners have access to Ritz Carlton properties in DC. Though I don't see MVCI putting a lot of effort in to a separate website for only 5% of the owner base.

2. That due to recent tax law changes made by Obama that we could claim our timeshare interest...new purchases only....as a 2nd home......additionally..if we were to transfer our timeshare interest into our small corporation we could depreciate that cost.

Don't know about this.

3.That Marriott was coming out with a "buy back program" this year that would buy back trust points at 60-70% of value.....didnt say how that would be done......and didnt think to ask either.

They have been talking about this since day 1 of DC rollout. I will beleive it when I see it.

4. That our trust points dont expire....and of course they dont if you trade for Marriott reward points....and that they are extending that time to 6 month after your use year begans

They expire just the same as legacy DC points. Unless you only own trust points, then they may have a different use year.

FACT OR FICTION

 

[GregT]

We recently attended a Marriott presentation where we were told several things we had not heard before.
1. That Premier Plus owners were getting their own web site with new log in info and this site would perhaps have a little different inventory to look at amoung other things.

FICTION -- no current web site that is dedicated to Premier Plus

2. That due to recent tax law changes made by Obama that we could claim our timeshare interest...new purchases only....as a 2nd home......additionally..if we were to transfer our timeshare interest into our small corporation we could depreciate that cost.

FICTION -- I highly doubt there is special treatment for timeshare sales in any of the new laws. I've studied taxes a bit for timeshares, and just don't see this.

3.That Marriott was coming out with a "buy back program" this year that would buy back trust points at 60-70% of value.....didnt say how that would be done......and didnt think to ask either.

FICTION -- we've been hearing about this repurchase program for awhile, but it has not materialized yet. So perhaps one day it will not be fiction.

4. That our trust points dont expire....and of course they dont if you trade for Marriott reward points....and that they are extending that time to 6 month after your use year begans
FACT OR FICTION

FICTION -- Trust Points currently do not have extended expiration dates. Not sure if that can be changed, but would be a real positive for Trust point owners.


So....I can't support any of the statements that were made. We will see if anything changes in the days ahead.

Best,

Greg

 

[BocaBoy]

We recently attended a Marriott presentation where we were told several things we had not heard before.
.............
2. That due to recent tax law changes made by Obama that we could claim our timeshare interest...new purchases only....as a 2nd home......additionally..if we were to transfer our timeshare interest into our small corporation we could depreciate that cost.
.......

A timeshare could always be treated as a second home, with the ability to deduct mortgage interest (if you have a mortgage) and property taxes. Depreciation could always be claimed IF you use it as a rental property and receive taxable rental income. Ownership by a corporation is not relevant. This is nothing new and most people cannot qualify.

 

[budmeyer12]

Thank you.....all of you that have replied. It was just as I suspected.....a salespersons pitch..... filled with 1/2 truths.....just believeable enough to get you to buy.

 

[dougp26364]

A timeshare could always be treated as a second home, with the ability to deduct mortgage interest (if you have a mortgage) and property taxes. Depreciation could always be claimed IF you use it as a rental property and receive taxable rental income. Ownership by a corporation is not relevant. This is nothing new and most people cannot qualify.

It has been my understanding that you could deduct your home mortgage plus one additional vacation home loan interest if you qualified to itemize your expenses. With this in mind, if you had a primary residence, a vacation cabin and a timeshare, all with a mortgage, then only two of the three could be deducted. But, I'm not a qualified tax account or advisor.

I've never taken into consideration if a trust bases ownership in a timeshare system would qualify for deduction. If it does, would that mean that, as you increase your ownership interest, if you maintain only one loan/mortgage, does that allow you to continue to deduct future additions? I would assume so as long as there are only two mortgages, assuming I'm correct that only tw o mortgages are deductible and that a trust based ownership qualifies the same as a deeded week ownership.

Things that make you go hmmmmm. With the government, I'm never to sure.

 

[SMHarman]

We recently attended a Marriott presentation where we were told several things we had not heard before.
2. That due to recent tax law changes made by Obama that we could claim our timeshare interest...new purchases only....as a 2nd home......additionally..if we were to transfer our timeshare interest into our small corporation we could depreciate that cost.
FACT OR FICTION

This would not be a recent change. Any Asset that is bought by a corporation needs to be depreciated over its useful economic life.
So fact, you can depreciate that cost.
BUT
What are you going to depreciate it against. I guess if you rent it out then you can offset the rental income but then on a personal tax return you can offset the rental income against the MF (and probably more but you would need to talk to your accountant about that).
Kinda Fact, but nothing to do with Obama and the company would need other income / profits to use the depreciation. The deduct interest part, well if it is a 'mortgage' then you can deduct, but a mortgage on a TS is expensive. If you really need to borrow to buy a timeshare (bad idea - you now need to add the MF+Interest as the cost of your weeks usage so realistically you are probably better renting if you combine those costs) then a HELOC or some other low interest secured loan would be the cheapest form of financing (but of course means you are using you home like an ATM).