Selling up question

[amy56]

When we bought our contracts we were advised to buy small contracts as they would be easier to sell, but I’m now wondering whether that is bad advice for international guests if you have to pay set fees to claim tax back?

We have 4 contracts - 2 x 100 pts and 2 x 25pts, would that mean we’d possibly have to pay 4 x $500 ish to claim our tax back if we sold all four contracts? If so, I guess it means our 25 point contracts particularly would lose a lot of money?

Thanks for any advice 👍

[Love*my*hols]

Yes we had to pay for each contract although we got a higher price per point for the smaller contract so swings and roundabouts I guess .

[KarenG]

I didn’t know you were thinking of selling Amy?

I haven’t done the maths but my guess is you may end up saving less than $500 for those 25 point contracts which could make paying $500 pointless?

[amy56]

Originally Posted by KarenG

I didn’t know you were thinking of selling Amy?

I haven’t done the maths but my guess is you may end up saving less than $500 for those 25 point contracts which could make paying $500 pointless?

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Hi Karen, hope you guys are well?

I’m not currently looking to sell, as we have a holiday booked next year and I still want to return to Aulani, but I can’t see us needing all of our points long term.

Ideally I’d like to offload the two smaller contracts and keep the two 100 point ones. But if it’s costing a lot in fees then I don’t know how worthwhile it would be , but as you say it might not be worth paying the fee to get the tax back - I don’t really understand it all 😂

[Br'er Bear]

Originally Posted by Love*my*hols

We haven't actually received our refund yet on another contract that we closed in Feb .We have chased it up but the delay is with IRS.I don't think we'll receive it all back because we will be taxed on profit but not taking into account exchange rate I don't think we'll have made much .On this contract we received our refund in July and it was $665 with $460 to IRS As far as the $1200 costs,this was $450 to claim tax back and rest was resale company fees as far as I can remember

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Many thanks again for your feedback, it's all very helpful for those making the difficult decision to sell or hang onto to their membership.

It also highlights the high cost (percentage wise) in claiming back the FIRPTA on multiple or smaller contracts. why pay out $400 on what might only be a potential small return, especially if you have to wait for many months

This clearly impacts the owners like amy56 with four contacts, one would hope there are FIRPTA specialist out there who would significantly reduce their fees for those selling multiply contacts at the same time.

[JasonErpelding]

Originally Posted by Br'er Bear

This clearly impacts the owners like amy56 with four contacts, one would hope there are FIRPTA specialist out there who would significantly reduce their fees for those selling multiply contacts at the same time.

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Here are two FIRPTA specialists I am aware of. Feel free to email them questions.

Wade Johnson wade@usfirpta.com

Nancy Carpenter nancy@fitaxes.com

Jason Erpelding
Lic. Real Estate Broker
Buy and Sell DVC, Inc.®

[YorkshireT]

Originally Posted by Br'er Bear

Many thanks again for your feedback, it's all very helpful for those making the difficult decision to sell or hang onto to their membership.

It also highlights the high cost (percentage wise) in claiming back the FIRPTA on multiple or smaller contracts. why pay out $400 on what might only be a potential small return, especially if you have to wait for many months

This clearly impacts the owners like amy56 with four contacts, one would hope there are FIRPTA specialist out there who would significantly reduce their fees for those selling multiply contacts at the same time.

See more...

You would think so, can’t be as much work given same client, one interview, one obtaining ITN etc.