DVC Rental Store vs Davids

[WIll C]

I put some points up to rent last year on both sites (and both within 7 months time window on expiring). Both sites got back to me quickly to set things up.

I never heard back from that point on with the DVC Store. It seems they are really geared towards you filling rentals already posting on their site. They are certainly give you more per point.

David's had my points rented out to someone within two weeks. Process was easy, I made the reservation, added the people and sent the info. Had the money on time thru PayPal. No issues and it was easy to do.

I've also rented them person to person and that was just time on my part. Transferred points to another DVC member and got my money right away. That's all comes down to what you can handle with trust. The boards here are probably a good place to do that.

 

[Sandisw]

As far as I know paypal only reports on total payouts when they reach 10,000.00. so I have not had this problem.

I read new rules of any account with over $600 have to be reports to IRS but could be only for businesses. But being this is coming from David and he is a business didn’t know if there would be an impact.

 

[Rochester Disney Fan]

I read new rules of any account with over $600 have to be reports to IRS but could be only for businesses. But being this is coming from David and he is a business didn’t know if there would be an impact.

Thanks for letting me know, I'll look into it.

 

[Rochester Disney Fan]

Well I believe I'm good (at least for now) up to 20,000.00 because I live in NY. Plus I'm not a business but I don't even know if that part matters . This is what the Paypal site says.

Will PayPal report my business sales to the IRS?
PayPal tracks the total payment volume on your account to determine whether it meets the IRS threshold in a calendar year:

• $20,000 USD in total payment volume from sales of goods or services in a single calendar year and,
• 200 payments for goods or services in the same year.

Some US States require merchant reporting at a lower threshold:

• Vermont, Massachusetts, Virginia, Maryland: Have a $600 USD total payment volume threshold from sales of goods or services in a single calendar year. That’s regardless of the number of transactions.
• Illinois: Has a $1,000 USD total payment volume threshold of goods or services in a single calendar year. And at least 4 payment transactions.

 

[CarolynFH]

@Rochester Disney Fan, there is a new law that sets the reporting limit at $600/year for businesses. HERE is a recent thread from TUG about it. TUG members who rent are also concerned.

 

[wnielsen1]

Well I believe I'm good (at least for now) up to 20,000.00 because I live in NY. Plus I'm not a business but I don't even know if that part matters . This is what the Paypal site says.

Will PayPal report my business sales to the IRS?
PayPal tracks the total payment volume on your account to determine whether it meets the IRS threshold in a calendar year:

• $20,000 USD in total payment volume from sales of goods or services in a single calendar year and,
• 200 payments for goods or services in the same year.

Some US States require merchant reporting at a lower threshold:

• Vermont, Massachusetts, Virginia, Maryland: Have a $600 USD total payment volume threshold from sales of goods or services in a single calendar year. That’s regardless of the number of transactions.
• Illinois: Has a $1,000 USD total payment volume threshold of goods or services in a single calendar year. And at least 4 payment transactions.

Those are the old rules. The 2022 rule is $600 regardless of the number of transactions.

 

[Newbie500]

And then there's this

PayPal and Venmo $600 tax rule: What you need to know before you file (acorns.com)

 

[pianomanzano]

And then there's this

PayPal and Venmo $600 tax rule: What you need to know before you file (acorns.com)

I know this is probably best to ask an actual accountant or someone with familiarity with tax law, but just throwing this out here to see if others have done something similar when reporting rental income. Based on the couch example in this link, can we as owners subtract out both initial price paid (on a total point basis) and the dues paid on those points? For example, if I rent out 20 points at 20pp for $400 in rental income, and if each individual point originally cost something like 4pp and dues for this years points were 6pp (simplifying for the example), could one subtract out $200 from the rental income to account for costs paid?

 

[howardlee2]

even in running a business your profits are receipts minus expenses. for points the yearly dues count as expenses.

 

[wnielsen1]

I see a lot of incorrect information on these boards. The portion of dues that goes to capital reserves is not an expense for tax purposes, and therefore, should not be deducted against rental income.

 

[pianomanzano]

I see a lot of incorrect information on these boards. The portion of dues that goes to capital reserves is not an expense for tax purposes, and therefore, should not be deducted against rental income.

That's why I posed the question. I'm newish to DVC here and will be renting out some points due to some life events. Plan to check with my accountant anyway but just wanted to know how others treat rental income and what can/can't be counted as expenses.