Thinking of selling--do I do Marriott Repurchase or sell on open market?

[PearlCity]

Thinking of selling my Marriott EOY unit. I'm not sure if I'm allowed to mention where so I won't--I contacted Marriott Resales and my net would be about $900 less than I bought for back in 2012. Financially I don't feel too bad with this as I used it to trade into Ko Olina for 4 years (locking off) over the 4th of July weekend, but things are changing with the kids schedules, and I'm able to trade into MKO when I need to with my worldmark. An honestly, when I bought I didn't own my DVC which gets me in to Ko Olina if I want to go out there and not bother with trading.

Do I take the Marriott Resales offer or try to sell on the open market with a resale broker (If I sell through Marriott Resales they are estimating netting about $100 more than I paid, but I'm not sure how long that would take)?
For folks who have put their Marriott timeshare on the market, how long have you had it listed? How long has it taken if you did repurchase program to close?

Thanks all!

 

[presley]

For folks who have put their Marriott timeshare on the market, how long have you had it listed? How long has it taken if you did repurchase program to close?

They didn't offer me a buy back, but they did offer to sell it for me and I netted slightly more than what I paid. Now, I'll have to pay capital gains on that amount, so maybe it is better to sell at what you paid or at a loss.

Mine sold quickly after I returned the contract. The buyer dragged their feet and it made the closing take longer than necessary. Marriott gave me the option of cancelling the sale and relisting it, which I did. They notified the buyer that the sale was going to be cancelled and the buyer suddenly was able to return their paperwork and payment. It was all still very quick compared to doing it on my or with an agent.

Personally, since they are willing to do all the work, I'd just let them do it. They don't negotiate. Their sales price is what they will sell it for, so you won't even be bothered by having to respond to low ball offers. I do not see resale agents getting as much as Marriott does. Keep in mind paying the capital gains (even though they are small) if you sell at a profit.

EDIT TO ADD: I just looked at my past post here about the sale. It "sold" 2 days after I returned the contract, but it was 2 months before the buyer returned their paperwork. http://tugbbs.com/forums/showthread.php?t=178337&highlight=marriott+back&page=19

 

[PearlCity]

So Capital gains was off the sales price not the net after capital gains correct?

They said they can sell for $5900 (around there I need to check the email) netting $3600 which is around what I paid.. so I would have to pay tax off the $5900? If that's the case then you're right I think I end up netting $100 more if I do the buy back.

I liked my Marriott, but trading is taking longer than it did when I first bought in 2012 I'm concerned that it will continue to get harder and I honestly think I have too much right now lol.

They didn't offer me a buy back, but they did offer to sell it for me and I netted slightly more than what I paid. Now, I'll have to pay capital gains on that amount, so maybe it is better to sell at what you paid or at a loss.

Mine sold quickly after I returned the contract. The buyer dragged their feet and it made the closing take longer than necessary. Marriott gave me the option of cancelling the sale and relisting it, which I did. They notified the buyer that the sale was going to be cancelled and the buyer suddenly was able to return their paperwork and payment. It was all still very quick compared to doing it on my or with an agent.

Personally, since they are willing to do all the work, I'd just let them do it. They don't negotiate. Their sales price is what they will sell it for, so you won't even be bothered by having to respond to low ball offers. I do not see resale agents getting as much as Marriott does. Keep in mind paying the capital gains (even though they are small) if you sell at a profit.

EDIT TO ADD: I just looked at my past post here about the sale. It "sold" 2 days after I returned the contract, but it was 2 months before the buyer returned their paperwork. http://tugbbs.com/forums/showthread.php?t=178337&highlight=marriott+back&page=19

 

[Ty1on]

So Capital gains was off the sales price not the net after capital gains correct?

They said they can sell for $5900 (around there I need to check the email) netting $3600 which is around what I paid.. so I would have to pay tax off the $5900? If that's the case then you're right I think I end up netting $100 more if I do the buy back.

I liked my Marriott, but trading is taking longer than it did when I first bought in 2012 I'm concerned that it will continue to get harder and I honestly think I have too much right now lol.

Capital Gains is sales price less selling cost and basis. Basis is purchase price and any allowable improvements.

 

[dioxide45]

Capital Gains is sales price less selling cost and basis. Basis is purchase price and any allowable improvements.

I think Marriott reports only the amount paid out on the 1099. So then one just needs to subtract their basis to get the net.

 

[presley]

So Capital gains was off the sales price not the net after capital gains correct?

They said they can sell for $5900 (around there I need to check the email) netting $3600 which is around what I paid.. so I would have to pay tax off the $5900? If that's the case then you're right I think I end up netting $100 more if I do the buy back.

Your 1099 will show the sales price, but you deduct the commission paid, advertising fees (if you do it on your own) and what you originally paid. So, if your net is equal to or less than what you paid, you won't have to pay capital gains.

 

[PearlCity]

Thanks. I'll discuss with the husband tonight. Would be nice to break even and have gotten all those inexpensive stays at MKO.

 

[suzannesimon]

I don't understand the issue with paying capital gains tax. It's a good thing. It means you made money on the sale - pretty rare in the timeshare world. The IRS can't take it all which means you still made money on the transaction.

 

[taterhed]

We understand you're not trying to sell in this forum; what is the unit in question? It's hard to guess value without knowing what it is..... That's assuming you want the advise. If not, I understand.
(Edit). Sorry, I see it's MCV.

Let me revise: I'd go with Marriott resales. Sounds like a no-brainer.


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[BocaBoy]

I don't understand the issue with paying capital gains tax. It's a good thing. It means you made money on the sale - pretty rare in the timeshare world. The IRS can't take it all which means you still made money on the transaction.

I agree. Not wanting to make a profit in order to avoid capital gains tax is baffling to me.

 

[dioxide45]

I agree. Not wanting to make a profit in order to avoid capital gains tax is baffling to me.

I think people were looking for legitimate deductions to bring the net price down enough not to have to pay capital gains tax. Not that they were trying to sell it for a lower price to avoid the tax. No one wants to pay more than they have to.

 

[OutAndAbout]

I agree. Not wanting to make a profit in order to avoid capital gains tax is baffling to me.

Unfortunately taxes can be very complicated. Even if all your filings are correct an audit will cost lots of time and money. Filing taxes can not only be seen as an effort in being right, but also how to avoid getting questions asked even if everything is right. I could see how someone would prefer to break even or have a slight loss than include a $100 gain (which could net considerably less than that amount post-tax).

 

[PearlCity]

Well I ended up listing with Marriott, thanks everyone for the advice. We'll see how long it takes to sell.

The tax thing IS complicated. Depending on how you do that math I thought it would have netted me less than the buy back. But from the comments above I think selling with Marriott would result in a small $100 gain which would end up resulting in me not losing any money in the transaction should it sell. For those that commented you're right, NOT losing money is always better than losing money!

Either way when I bought I calculated the resale value of the timeshare to zero (I estimated keeping it a little longer but, life happens). So recouping any cost to me is a bonus.

 

[bogey21]

Unfortunately taxes can be very complicated. Even if all your filings are correct an audit will cost lots of time and money. Filing taxes can not only be seen as an effort in being right, but also how to avoid getting questions asked even if everything is right. I could see how someone would prefer to break even or have a slight loss than include a $100 gain (which could net considerably less than that amount post-tax).

Complicated? Many years ago I bought a Monarch Crown Suite Week resale for $25K. About 5 years later Marriott sold it for me for $41k. Commission back then was 20%. So I had a profit. I reported a profit on my tax return. It was simple.

I showed the $41,000 Sales Price; subtracted the $8,200 Commission to Marriott; netted the above against my $25,000 purchase price; and paid tax on the $7,900. I think it was LT Capital Gain (not sure though as it was many years ago). It must have been ok with the IRS as I never heard from them.

George

 

[BocaBoy]

Complicated? Many years ago I bought a Monarch Crown Suite Week resale for $25K. About 5 years later Marriott sold it for me for $41k. Commission back then was 20%. So I had a profit. I reported a profit on my tax return. It was simple.

I showed the $41,000 Sales Price; subtracted the $8,200 Commission to Marriott; netted the above against my $25,000 purchase price; and paid tax on the $7,900. I think it was LT Capital Gain (not sure though as it was many years ago). It must have been ok with the IRS as I never heard from them.

George

I agree. This is basic straightforward tax stuff and not at all complicated. It does not raise any flags with the IRS because it is a very common type of transaction. It is the same as reporting a profit on a simple stock sale.

 

[PearlCity]

They didn't offer me a buy back, but they did offer to sell it for me and I netted slightly more than what I paid. Now, I'll have to pay capital gains on that amount, so maybe it is better to sell at what you paid or at a loss.

Mine sold quickly after I returned the contract. The buyer dragged their feet and it made the closing take longer than necessary. Marriott gave me the option of cancelling the sale and relisting it, which I did. They notified the buyer that the sale was going to be cancelled and the buyer suddenly was able to return their paperwork and payment. It was all still very quick compared to doing it on my or with an agent.

Personally, since they are willing to do all the work, I'd just let them do it. They don't negotiate. Their sales price is what they will sell it for, so you won't even be bothered by having to respond to low ball offers. I do not see resale agents getting as much as Marriott does. Keep in mind paying the capital gains (even though they are small) if you sell at a profit.

EDIT TO ADD: I just looked at my past post here about the sale. It "sold" 2 days after I returned the contract, but it was 2 months before the buyer returned their paperwork. http://tugbbs.com/forums/showthread.php?t=178337&highlight=marriott+back&page=19

Well after turning in the paperwork to list with Marriott on Dec 28th I got an email this morning that they found a potential buyer. Hopefully our buyer moves a little faster than yours! Crossing my fingers!

 

[PearlCity]

Well just an update. Our timeshare sold and closed this week. About 2 months process from list date to closing. Much faster than I anticipated!

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[GregT]

Well just an update. Our timeshare sold and closed this week. About 2 months process from list date to closing. Much faster than I anticipated!

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Paulette,

Does this mean that you're out of the Marriott ownership business completely???? Or do you still have one more?

I hope you still keep the Worldmark at least! Congrats on the fast close and glad that you got the transaction you were looking for.

Best,

Greg

 

[PearlCity]

Paulette,

Does this mean that you're out of the Marriott ownership business completely???? Or do you still have one more?

I hope you still keep the Worldmark at least! Congrats on the fast close and glad that you got the transaction you were looking for.

Best,

Greg

Yes I'm out of Marriott completely. Which is funny because i started timesharing because of MKO. BUT I've had much success with trading into MKO with worldmark and really like my worldmark so much more for flexibility and ease of use. Between worldmark and DVC it was enough to manage and with the kids being so busy with activities I guess right now I needed more flexibility with my bookings, which is what DVC and worldmark allow for.

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