RunDisney+DVC?

[striker1064]

This rental increase is also likely to be a lot more than any sort of due increases (a portion of which you can write off on taxes as they are Florida property taxes).

In addition to what @supersnoop mentioned about it being very little, I also have never been sure that it's allowable to write off the property taxes in the first place. The IRS considers timeshares personal property as a rule so you can't normally deduct the tax like a mortgage. There is one situation where it's allowed, and that's if the timeshare owner bills the tax on a per-week basis directly to the owner. I can't remember for sure but I don't think DVC does it that way - I believe they assess the property tax to one property as a whole, so based on everything I've read it's not deductible.

That being said, it's such a tiny amount of money in the grand scheme and there are so many questions around it for me personally that I never deducted it on our taxes. It wasn't worth trying to explain it if it ever came up.

 

[jpeterson]

I could not make the math work if you had to finance. Short answer if you don't have the cash to buy the contract i would NOT do it. I will say it again without looking at anyone's pocket book. If you have to finance your purchase of DVC the answer is it does not make financial sense to do it.

We are DVC owner and we made the same calculation. If we had to finance it then it didn't make sense for us. We were fortunate and managed to scrimp and save a bit and made it work.

I won't tell anyone else what makes sense for them but we couldn't make the math work when financing.

 

[accm]

So after all that, my opinion is that if you envision staying at WDW Deluxe hotels for the next 15-20 years, then DVC should certainly be a consideration. If you are more a value, moderate, or off-site renter, then DVC is probably not for you. I like your idea of renting points when you can get a decent deal.

I think this is the best summary of if DVC may be worth it for someone. If you're comparing DVC to value/off site, DVC will never come out ahead.

 

[ironmitch]

We bought a resale DVC membership two years ago. I calculated that, with original purchase price and current dues, we have paid about $10.50 per point. Current rentals are about $20pp? If you're renting DVC every year maybe it makes sense to buy resale!

In my mind at least I believe listing points to rent does remove some of the sting of owning. I wish the point exchange process and hotel availability were better when moving points outside of DVC.

 

[Brian Noble]

What (if any) are the benefits to owning instead of just continuing to rent as we have been?

The biggest benefit to owning DVC (or, for that matter, any timeshare) is that vacations become a priority that you plan ahead for, rather than something you fit in around everything else you do when you have time for one. The use-it-or-lose-it nature of timeshare assets changes the way I think about going on vacation.

On the other hand, I can pretty much guarantee that I spend more money on vacations by being a timeshare owner than I would if I were not. And, it is probably a lot more. I am also taking more vacations, and money is for spending, so that's not a bad trade, and one I am happy to have made. My portfolio has grown as our circumstances have, and the total amount we are spending is within a possible budget, so why not?

The downside of DVC ownership specifically is that you are committing a serious chunk of vacation time and attention to Disney (and, really, to WDW), and it takes a while to "make back" the purchase price in vacations---think at least ten years. You are betting you will not tire of it nor will your kid(s) "age out" in that time. But, DVC carries a significant price premium vs. other options, and especially so on the secondary/resale market.

 

[Wishuponastar0412]

My husband and I have two small contracts, but it does get us enough nights to cover our stays for Marathon Weekend. We bought resale as we could afford more points and paid cash. He doesn't like the values as he likes to have a gym (even when we're there to run), so that narrows us down to deluxe or Coronado. We always go down for marathon weekend to run, so it made sense for us. We stayed in an AKV this past year and currently have Poly booked. Our stays are less than $250/night. Even if there were discounts, we aren't getting rooms that cheap! We have rented before and continue to rent for my parents, but I love the flexibility owning gives me for race weekends. You can easily change hotels, waitlist, or modify details that you wouldn't be able to do with renting. I can't even tell how many times I've modified 2023 marathon weekend until I got the call from member services that my waitlist matched!

Something that keeps my husband happy, is that we could easily and quickly resell our contracts (and make a profit). We have two under 100 points each and they seem to sell extremely fast.

 

[Onceuponamarathon]

In addition to what @supersnoop mentioned about it being very little, I also have never been sure that it's allowable to write off the property taxes in the first place. The IRS considers timeshares personal property as a rule so you can't normally deduct the tax like a mortgage. There is one situation where it's allowed, and that's if the timeshare owner bills the tax on a per-week basis directly to the owner. I can't remember for sure but I don't think DVC does it that way - I believe they assess the property tax to one property as a whole, so based on everything I've read it's not deductible.

That being said, it's such a tiny amount of money in the grand scheme and there are so many questions around it for me personally that I never deducted it on our taxes. It wasn't worth trying to explain it if it ever came up.

DVC is a deeded property that you pay property taxes on to the state of FL (or SC or HI). There are a few different things people usually want to know if they can write off with DVC: the interest on the financing loan, property taxes, and dues. For each item the answer is a little different. I am not a CPA, so verify all this, but my understanding is:

1. The *property* tax is something you can write off on your taxes. Disney line items the portion of dues that is sent to Orange County for property taxes. This portion is the number that can be written off.

2. Dues (outside of the portion that is used for property taxes) cannot be written off as they are for upkeep and maintenance.

3. Writing off the interest on the financing loan all depends on how the loan is structured and if you have other properties. If the loan is secured (via a home equity loan for example, and I think maybe DVC financing since they use the deeded property?) then you may be eligible to write off the loan interest. Similar to writing off a mortgage. If you’re financing via an unsecured loan, ie through a credit card or a personal loan, you do not qualify. If you have other vacation homes, there are additional rules that come into play and there is a limit on how many homes and how much can be written off.

Also, even if something is eligible to be written off, it may not make sense for your personal tax situation. So it’s always worth working with a CPA.

Our property taxes for the Riviera are written off every year. We do not file our own taxes, we use a firm.