Selling DVC & possible tax consequences

[RKS03]

I know this is an old thread but I’m new to selling a contract. I know DVC sold at a profit is a capital gain but is it considered a long term capital gain or would tax be based on whatever tax bracket I’m in? I’m just trying to plan 2022 taxes so estimating total taxes did this year would be very helpful. Thanks.

 

[CarolMN]

I know this is an old thread but I’m new to selling a contract. I know DVC sold at a profit is a capital gain but is it considered a long term capital gain or would tax be based on whatever tax bracket I’m in? I’m just trying to plan 2022 taxes so estimating total taxes did this year would be very helpful. Thanks.

Depends on how long you've owned it.
https://www.investopedia.com/articl...gterm-vs-shortterm-capital-gain-tax-rates.asp

 

[RKS03]

Depends on how long you've owned it.
https://www.investopedia.com/articl...gterm-vs-shortterm-capital-gain-tax-rates.asp

Thanks, so more than a year it’s long-term like stocks.

 

[Buttercup]

We sold both of our DVC holdings. Upon request, DVC provided statements back to 2000 when we bought which clearly listed the capital reserve contribution. That amount is similar to a capital improvement on a house. If you replace the roof on your house for $10,000, that amount is added to the basis of the property and will reduce any gain accordingly. It was $3200 over 18 years and enough to swing the transaction to a loss so no cap gains were due. (takes the net impact to zero as you cannot deduct losses.) The pain is that you need to file a state tax return in the state the timeshare is located in.

Hi gscott8075. Would you please let me know what statements you requested that included the capital reserve contribution and went back to 2000? I requested our dues statements back to 2001. They provided statements back to 2014, which is far back as they retain per record retention, and the dues statements did not include capital reserve contributions. Thanks!