Has anyone sold their contract recently/ish and can walk me through the tax implication side of things? I’m sure you have to pay tax on the profit of the sale, but what other documents and things do you need to take into consideration when that time comes?
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I have no experience with this but I am interested in the answers!
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Here’s a thread on Disboards about this. I would search other forums, including DVC-focused forums. We don’t have as much volume or expertise on this side of things here.
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I did just sell a contract in 2021! I just kept track of what I paid for the contract including closing costs (easy since I also bought it in 2021). Then I subtracted those costs and the commission and the ROFR fee to come up with my net income from the sale. I put that in as income on my taxes. I did mine through Turbo Tax and I told them in the beginning I had sold a time share and it guided me to where I would put the income. For record keeping, I kept all the documentation showing what I paid (including closing costs), commission, and ROFR with the 1099 I received showing the full sale amount.
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Someone shared this article in that thread, which seems to be helpful. (I deny any and all liability for the accuracy of this article lol).
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Thanks! Did it have much of an effect on your taxes? I’m sure you made a profit, but did it 'penalize you much?
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You are an accountant so I hold you fully liable 
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I think my profit was around $500, so it did not have much impact. I imagine if you made thousands, it could definitely make an impact. I would try to up your withholding at work to take that extra income into account, if it ends up being a lot.
But $500 for maybe 6 months of owning the contract seemed like a fair turnaround to me!
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I agree! A friend of mine could sell her BW contract for double what she paid for it. I’m debating selling my BR contract, but I won’t be able to until after July so I’ll see how things are then. I am so insanely pissed off they keep pushing the refurb.
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Will you turn around and buy something else? Will you have enough points!!! 
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Well I have debated just buying more SSR points. It was my first home resort, I actually do like it there, and it’s still relatively cheap. I’ll need the money from the sale to do it though.
I’m also looking into using the whole Disney visa, cash back, rewards points stack stack stack to buy as well.
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Can you point me to where this is explained in full? (I probably won’t use it but I’m curious.)
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Ummmmmmmm I don’t remember where I saw someone mention it, but they used their Disney Visa to pay for their direct points and got 6 months 0% interest plus earned the 2% rewards bonus for the balance. I don’t have a card yet, but I see offers for $300 off your first however much spent in the first however many days. So I figured apply for the card, charge the points, get the $300 credit, earn 2% of the purchase price to apply towards the balance, and then it gives me 6 months to pay it in full.
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I believe @Jsanta26 just bought a direct contract and she set up something through her Disney Visa?
I bought my small BWV direct. I put it on my Disney Visa and paid it off over 6 months, interest free, and got points.
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There is also some kinda of extra North Carolina tax when selling Hilton Head
Not sure if applies here but if anyone is curious. Mouseowners has some pretty detailed threads on selling
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Why would there be NC tax for Hilton Head? Or do you mean SC?
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http://www.mouseowners.com/forums/showthread.php?t=136279
Typo Hilton head -
my apologies lol
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What is the points to $ ratio? I thought Disney cards just did 1 or 2 % rewards.
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That is really interesting. We own a house in SC and have been talking about selling it and that would be a pretty hefty additional tax to pay.
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again I am not a tax professional and my background definitely isn’t real estate law - but that forum group is pretty darn knowledgeable when it comes to all thing DVC. But something to ask about
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