*Statements and opinions included in this article should not be construed as professional advice. Please consult your accountant and/or tax attorney.
With a new year comes new tax rules, and this year there is one significant change you should be aware of if looking to rent your Disney Vacation Club points!
Effective January 1st, 2022, PayPal and Venmo are now required to provide customers with a 1099-K form for payments if their total goods and services payments exceed $600 during the tax year.
Now don’t get me wrong – When it comes to the United States, federal and state tax laws have always considered the money received by an owner in a DVC Rental transaction taxable income. However, some international DVC rental companies and private renters have skirted around this requirement for years.
With this new tax law, the playing field for DVC rentals has essentially been leveled, leaving no grey area to sneak through without paying your taxes. The only thing members looking to rent should consider now is getting the most value for their DVC points.
Our sponsors over at DVC Rental Store have always believed that following the IRS guidelines is in the best interest of each renting member. DVC Members that rented their points in 2021 with DVC Rental Store will receive a 1099 for payments received over $600 in rental income via ACH or check. For payments issued via PayPal or Venmo, these tax forms will be provided by those entities and not DVC Rental Store.
It is important to remember that regardless of whether you receive a 1099 or not, it is your responsibility to report any income received to the IRS correctly. If you have the option, receiving a 1099 is probably preferable since you won’t have to worry about remembering to report your income.
Long story short, Uncle Sam is going to find a way to get his tax money, so you are better off renting your DVC points the right way now, or you’ll be paying for it (literally) later.
Do I Have To Pay Taxes When Renting My DVC Points?
*Statements and opinions included in this article should not be construed as professional advice. Please consult your accountant and/or tax attorney.
It works be nice if you guys could look into how you write off the cost of the purchase and the cost of the dues to offset the 1099 you receive that shows you made income when in reality you have alor of expense to offset the income..