Selling Excess Points

[ctewks]

Hi - I’m considering making an offer for Wyndham points at a home resort I want to vacation at pretty regularly. While the price is good, the number of points is way more than I will need with annual MF more than I want to pay (even with renting out possibilities etc). if I make this purchase, is it possible to sell just a portion of the points or is it an all or nothing selling requirement? Thanks.

 

[Eric B]

There is no capability to sell or rent out points with Club Wyndham. You can, however, book a stay and rent that, but there are limitations on that. There's a lot to how Club Wyndham works that is worth researching before you go ahead with purchasing and resale is a great way to go. One thing in particular to keep in mind is that with Club Wyndham owning at a place you want to vacation regularly makes a great deal of sense if it is a location that has a period with very high demand during the periods you want to go there (e.g., Daytona Beach during Bike Week). As a general rule, it's not difficult to get a Club Wyndham reservation at the 10-month point when availability opens up for everyone. If the place you are interested in vacationing is not one of the lower cost Club Wyndham resorts and you aren't trying to get there when availability is quite tight, you could be better off looking into the lower cost ones (e.g., Bali Hai, Canterbury, South Shore or Grand Desert). Towers on the Grove is another good one with a low MF that also comes with advanced reservation rights at the other resorts in Myrtle Beach. Bottom line is that it's not a great idea to buy more than you need now or in the future with the thought that you'll be able to rent or sell portions of the points allotted - Club Wyndham won't let you split an ownership contract to my knowledge.

 

[bnoble]

if I make this purchase, is it possible to sell just a portion of the points or is it an all or nothing selling requirement?

If the points are on a single deed/trust agreement, you cannot split them and sell part. If the seller has separate deeds/trust contracts, you can sell individual ones.

 

[ctewks]

Thank you Eric! This is very helpful. The location I’m looking at seems to be high demand and limits guest reservations during the best travel times so just getting the amount of points I need makes the most sense (if I can get it at the right price).

 

[cbyrne1174]

Hi - I’m considering making an offer for Wyndham points at a home resort I want to vacation at pretty regularly. While the price is good, the number of points is way more than I will need with annual MF more than I want to pay (even with renting out possibilities etc). if I make this purchase, is it possible to sell just a portion of the points or is it an all or nothing selling requirement? Thanks.

I own more than I use and now that they changed the tax laws for reporting, I have to file a 1099 every single year for selling my excess points on Redweek. I'm not looking forward to it and if it ends up being a hassle, I'm just going to give back some points to Wyndham. I always made back less than my annual MF bill so it's not like I will have to pay income tax on my rentals, it's just an extra pain in the *** step that wasn't there last year.

 

[ctewks]

Thanks for the point about 1099. I actually found a contract that has more points than I need but not so many that the MF is problematic and was cheaper than the smaller point contract. Since this is a place I want to go to annual and cost less this way then what I am spending at a hotel I’m pretty happy. And hopefully I can use the extra points for more short term stays In other areas rather than trying to rent.

 

[comicbookman]

Thanks for the point about 1099. I actually found a contract that has more points than I need but not so many that the MF is problematic and was cheaper than the smaller point contract. Since this is a place I want to go to annual and cost less this way then what I am spending at a hotel I’m pretty happy. And hopefully I can use the extra points for more short term stays In other areas rather than trying to rent.

You might also check out Koala (go-Koala.com). I have used them to rent out excess points built up due to moving points forward. I have completed 2 rentals and been paid promptly. Your milage may vary though.

 

[paxsarah]

I have to file a 1099 every single year for selling my excess points on Redweek.

Individuals don’t file the 1099 - the payment processor if you use one does, and sends you a copy. The extra step is keeping that 1099 in a safe place. Your tax burden doesn’t change, it’s simply reporting that someone else has to do on your behalf.

 

[cbyrne1174]

Individuals don’t file the 1099 - the payment processor if you use one does, and sends you a copy. The extra step is keeping that 1099 in a safe place. Your tax burden doesn’t change, it’s simply reporting that someone else has to do on your behalf.

Yea but you have to file a schedule C to write off your maintenance fees as an expense or else you would be expected to pay the full tax on the rental.

 

[paxsarah]

Yea but you have to file a schedule C to write off your maintenance fees as an expense or else you would be expected to pay the full tax on the rental.

We already do that because my husband and I are self employed, and our tax preparation software generates everything. It’s not really a big deal in the overall scheme of preparing taxes for us. I guess if you do it all on paper it would take an extra 15 minutes or something.