DVC rental will send you the tax form. I have not rented from David’s but I have heard that since it is a Canadian Company, they do not report to IRS and it is the owner’s responsibility to report the income.
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You may want to talk to a CPA. While I am not a tax accountant (so don’t take this as tax advice) you should be able to deduct your costs, which should include a portion of the up-front costs as well as your dues related to those points. It might work out that there is no net impact on your taxes if your income and expenses are equal.
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I like this tax advice the best. Thanks! 
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Unless it’s David’s (apparently), you’ll get a 1099 for the full rental amount. Let’s say you rent 150pts at $20/share, so you get $3000. The rental co is going to take their fee out of it, but the 1099 will show it @ 100%. Technically, you’ll be able to deduct the rental fee and that year’s dues for those rented points as an expense against the income. To do so though, you’ll have to fill out Schedule E. If it’s a one-off and you’re not planning on renting it out every year, I’d advise you (if you were my client) to just suck it up and pay the $600 tax (assuming a 20% rate) on the income. If you plan on renting the points out every year, then it more accurately becomes a “rental property” with reasonable expenses deducted against the income. Either way, you’ll have to report the income. The question is if you choose to deduct the expenses.
Disclaimer: Yes I am a CPA tax accountant. Your individual circumstance is personal and may have nuance that I am unaware of. Consult with your own CPA before making any decisions.
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Thank you for weighing in! This is helpful for me to know, too as I am considering whether to rent out points.
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One question: what is your opinion on deducting depreciation? I have heard some people say you shouldn’t because it is real estate, but it is a contract with an end date, so each point has a discretely calculable cost with no residual value. But I don’t know how tax rules work in this situation.
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If it was purchased explicitly to be used as a rental, then the original contract price would be deductible over time in a depreciation- like manner over the remaining life of the contract. I would probably call it amortization though. And only if the intention was to only rent and not use. Taking depr/amort haphazardly whenever the points are rented is ill advised.
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Interesting. Makes sense though. Thanks!
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Setting DVC aside for a second, let’s say you have a house that you’re renting out. You own and rent it for 10 years , but don’t deduct depreciation. When you sell it, the calculation of the gain on the sale recaptures the depreciation that was allowable, whether or not it was taken. So, whoever is telling you not to take depreciation on rental real estate is wrong.
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I really should know this because I am a real estate accountant. 
But I work in book accounting exclusively, and tax is covered by a separate department.
To clarify, I vaguely remember reading on a DVC-specific conversation about whether you should deduct depreciation / amortization of your contract price. I don’t recall what the justification was.
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I personally would just bank the points and go on more trips, or book a bigger room.
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David’s may not but they pay you via PayPal which will issue a 1099-K. As I understand it there was a change that lowered the threshold for IRS reporting for services like PayPal. There was some pushback and possibly a staggered implementation from what I’ve heard (this also affects a non-profit I volunteer with that has youngsters selling some delicious offerings one a year) but I still got a 1099 for my rental in 2023.
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Sometimes you THINK you might rent out the points, but then a brilliant vacation plan forms and sure enough, those points are quickly spent!
When we bought our BWV contracts, it came with two years of points that we HAD to use by this December. Originally, I thought we could just rent them out. But my wife had the brilliant idea that I work from Disney! And, well…we didn’t end up renting out the points! 
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My contracts are both borrowed out, so I don’t think I will have a problem using my points.
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I have the same “problem”.
Actually, I do have enough points remaining for a planned trip in December 2025…but that involves borrowing all our 2026 points as well. Which is fine, since we are thinking of doing a cruise in 2026 anyhow.
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Buying more points does not solve this problem. Ask me how I know
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150 points at the Poly is like 7 nights in a studio, right? I do not think that you would have ANY trouble renting that out in a year. (You also theoretically have a 2-3 year window to do so.) I think you would also easily be able to do that privately if you needed to with less tax implication to worry about.
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We’ve rented points through David’s a few times and nothing we wanted to rent went unclaimed, including in the 7 month window.
As far as the 1099 goes we’ve never been issued one but the reporting threshold for P2P platforms is expected to be lowered (maybe drastically). The IRS delayed a $600 reporting threshold implementation and it sounds as if it’s likely to be $5,000 for 2024.
I’m not an accountant, but I file taxes in 3 countries (non-resident in US and Canada) so I try to pay attention to stuff that might mess me up. fwiw I find reporting everything as I should where I should by far the path of least resistance.
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Thanks everyone for the dialogue, I probably should have started my own thread. Two more follow up questions.
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From what I gather - Disney requires minimum 100 points contract, but 150 minimum for member benefits. Does anyone think the member benefits are worth buying a larger contract than “needed” (as @melcort10 mentioned that would get us 7nts and we are shooting for shorter trips). Of course, if I can convince DW, I’d love to have 150 points for flexibility to stay longer, do more short trips, or upgrade to 2BR to invite family. We would likely only use the member discounts on tickets, dining, and shopping, not booking cruises, NatGeo expeditions, etc (no interest in those)
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Regarding taxes - I have zero familiarity with timeshares - if we sell the contract in say 10 years, how does that get recorded - do we pay income tax on the full amount? I’m a geologist so I just study rocks, DW handles all the finances for us.
Explain like I’m 5 would be appreciated!
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I’ve also typically bought contix, so that discount doesn’t matter much to me
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