Taxes on renting points?

What are some possible costs associated with renting out points? I can't think of any...

If you paid a listing fee to a website, a commission to a sales agent, fees to accept a credit card, fees to convert foreign currency, the cost of any incentives you may have provided to the purchaser as inducement to purchase (e.g., I'll kick in a $25 Disney gift card if you add another day...), etc..
 
Interesting. I've only rented out my points through the DVC Rental Store, so I wasn't aware of all the miscellaneous fees that could be incurred for the rentee.
It isn't common to have much for additional fees. If you pay for a rental site whether it's here, redweeks, ebay or similar; that's about the most I ever have. I can't recall paying anything renting DVC except maybe once or twice for a redweeks listing fee and I've rented around 2 times a year on average for over 20 years. I rent my Marriott HH weeks about EOY rather than taking trust points or exchanging through II. When I do, I use redweeks which is a small membership fee and a listing fee. Historically when I've used PayPal I've required the other party to pay the fee, I no longer use PayPal now that paying for a timeshare rental is against their rules. I generally won't use an escrow because their rules are usually far to generous to the renter and too risky to the owner, but the one time I did, the renter paid for it. I find that positioning myself appropriately (renting early in the UY, generally working with current UY points) and making good choices gives me more comfort and safety than these options anyway , and I can usually approach things in a way that makes the renter comfortable. In general I find if you just treat people like you'd want to be treated, things will work well most of the time.
 
I no longer use PayPal now that paying for a timeshare rental is against their rules.

What do you use? It's difficult to think of a service as convenient and trusted as Paypal. I'd like to know an alternative to use when renting my points out. Thanks
 


so renting out some points through a Company the owner has to claim this as income and pay taxes on it? We are going to be needing to rent out 100 points and want to make sure I do this right!
 
so renting out some points through a Company the owner has to claim this as income and pay taxes on it? We are going to be needing to rent out 100 points and want to make sure I do this right!
If you are a US citizen, the answer is yes. However, you can subtract the cost of the maintenance fees on those points for the year the points were presented from the "income" from those points as well as any special charges directly due to renting those points (for example, if you rent OTU points, you get to subtract the full $17 cost). . Note that if you go through a US broker, you should receive a 1099 statement. If you go through David's (based in Canada), you will not receive a 1099 statement.
 
If you are a US citizen, the answer is yes. However, you can subtract the cost of the maintenance fees on those points for the year the points were presented from the "income" from those points as well as any special charges directly due to renting those points (for example, if you rent OTU points, you get to subtract the full $17 cost). . Note that if you go through a US broker, you should receive a 1099 statement. If you go through David's (based in Canada), you will not receive a 1099 statement.
got it, we only will have 100 points to rent out, after that we will be using them all ourselves each year. so this is a one time deal and didnt want to end up costing me alot to rent them.
 


What do you use? It's difficult to think of a service as convenient and trusted as Paypal. I'd like to know an alternative to use when renting my points out. Thanks
Truthfully I just do a personal check. I likely rent an average of 5 weeks a year total but it's very episodic. For example, I rented 2 weeks this year with DVC and likely won't for 2-3 years. We didn't rent any Marriott weeks this year but did 4 last year and will 7 this coming summer (bought 3 extra weeks on HH) and then none of those for another year or 2 after that. I can't remember the last time I didn't do a rental by personal check. My usual terms are 25% up front, the remainder at 120 days out all non refundable. Does that mean I might miss a rental, sure but I'm OK with that, esp since this isn't a business, it's a hobby. To be honest, the times I've regretted related to rentals were when I made concessions. I'm honest, I'm response, I try to be reasonable and responsive. When people low ball I just say no thanks. At this point many if not most of the rentals I do are repeat customers. I can't think of the last time I even listed an add for my DVC points, it seems I always get the points rented by those that contact me that I've dealt with before.

But ways to send money direct is everywhere in todays world. Basically all banks and credit unions have such an option. Any sense of security with paypal is an illusion.
 

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