Guide says "VGF just sold out"

[thelionqueen]

I calculate every resale contract listed in my UY and can't find something more enticing than VGF this summer direct! The minimal dues increase just makes it sting even more!

Did you not buy in?
I saw you struggling with whether to or not but thought you did. No?

 

[grahf1234]

Never ever forget Disney is master of two things: Magical feelings (positive) and FOMO Marketing (negative). As long and you watch for both you'll be fine

it’s pretty twisted, that was only a couple of months of feeling good. Did the bidding of that marketing yet the relief was so short lived!

 

[thelionqueen]

It was available on the Add on tool yesterday

 

[LittleBitGoofy]

It was available on the Add on tool yesterday

Whenever I checked yesterday it was gone. Still gone as of now too. Not even listed under the "sold out" options. Curious what it'll be ($$ when it's back!

 

[HyperspaceMountainPilot]

It was available on the Add on tool yesterday

Did you catch the price?

 

[PolyRob]

Did you not buy in?
I saw you struggling with whether to or not but thought you did. No?

I did! I just wish I purchased more.

 

[winnieforme]

Feels unfair to actually succumb to FOMO during summer sales and buy 200, only to feel like I still somehow missed out...
This sold out stuff and the VGF ROFRing are definitely not helping

what were the summer prices?

 

[HyperspaceMountainPilot]

what were the summer prices?

Most of us who bought during the summer promo got to about $183/point, and then you had the option to sell back your first year points for $22/pt, bringing direct points down to $161/pp.

 

[winnieforme]

Most of us who bought during the summer promo got to about $183/point, and then you had the option to sell back your first year points for $22/pt, bringing direct points down to $161/pp.

Incredible

Most of us who bought during the summer promo got to about $183/point, and then you had the option to sell back your first year points for $22/pt, bringing direct points down to $161/pp.

Amazing prices!

 

[HyperspaceMountainPilot]

Incredible

Amazing prices!

Until about a week ago, I thought VGF resale might actually trend down as people who bought 50, 75, or 100 points more than they needed to qualify for the 150pt incentives later unloaded their “extra points”—but now I’m increasingly seeing that many who bought 150 “for the blue card” are already wishing they bought an extra 50-100 points because staying at VGF is really nice but the point chart is not so nice. Combine that with the resort suddenly selling out and fairly low dues, and I think VGF could actually buck the trend and see an upward drift for at least the next few months.

 

[kboo]

I did! I just wish I purchased more.

Our poor guide had to rewrite our contracts 3x as we went from 200 to new deal 200 to 266. I think we are done.

 

[thelionqueen]

Did you catch the price?

$230 no incentives

 

[aceshigh73]

Most of us who bought during the summer promo got to about $183/point, and then you had the option to sell back your first year points for $22/pt, bringing direct points down to $161/pp.

Thank you for accurately pointing out we (yes I bought too) didnt pay $161/pt for VGF this summer. We paid $183 or so and rented our first years points back to Disney!!!
They must have LOVED that people kept saying $161 when it really wasnt. Granted $22/pt is a great rental price, its still points we could have used and not rented back.

 

[Genie+]

Do wish we went to 200pts with Summer Incentives instead of the 150pts I felt certain at the time was more than enough

The actual price after incentives was $183, though we paid $161pp for exactly what $230pp would get us today. That’s due to Magical Beginnings and Sept UY. Just a few months later a $69pp difference for the same 41 years of points.

Poly2 likely grabs our attention so maybe it’s just as well. Can’t wait to see those and $pp! I really hope they start with great incentives. Not sure what to expect.

 

[DanCali]

Thank you for accurately pointing out we (yes I bought too) didnt pay $161/pt for VGF this summer. We paid $183 or so and rented our first years points back to Disney!!!
They must have LOVED that people kept saying $161 when it really wasnt. Granted $22/pt is a great rental price, its still points we could have used and not rented back.

I am not a tax professional but if it is was a rental, you'd be paying income tax in 2023. And I suspect the tax would be on the full amount (~30%) because the annual dues you pay are based on prorated calendar year and the same whether you take advantage of MB or not.

However, Disney refers to it as a "rebate" which, based on IRS publications, reduces your tax cost basis. This will impact your capital gain if/when you sell (you will have a bigger gain or smaller loss) but there would be no immediate tax consequences.







Here is a link to IRS Pub 551 - https://www.irs.gov/pub/irs-pdf/p551.pdf

The following is from page 5:



If you accept that interpretation, then you did technically buy for $161 and just started usage of the property later. As I mentioned, I am not a tax advisor, but I do think there is a very good reason they call it a rebate and not a rental, and you can only do it at the time of purchase.

 

[WxKristin]

Until about a week ago, I thought VGF resale might actually trend down as people who bought 50, 75, or 100 points more than they needed to qualify for the 150pt incentives later unloaded their “extra points”—but now I’m increasingly seeing that many who bought 150 “for the blue card” are already wishing they bought an extra 50-100 points because staying at VGF is really nice but the point chart is not so nice. Combine that with the resort suddenly selling out and fairly low dues, and I think VGF could actually buck the trend and see an upward drift for at least the next few months.

This is why I'm taking those VGF points and staying at AKL-Jambo value and BWV standard 1 bedrooms. Love VGF and love 1 bedrooms, but those two loves don't play the nicest together.

 

[HyperspaceMountainPilot]

I am not a tax professional but if it is was a rental, you'd be paying income tax in 2023. And I suspect the tax would be on the full amount (~30%) because the annual dues you pay are based on prorated calendar year and the same whether you take advantage of MB or not.

However, Disney refers to it as a "rebate" which, based on IRS publications, reduces your tax cost basis. This will impact your capital gain if/when you sell (you will have a bigger gain or smaller loss) but there would be no immediate tax consequences.

View attachment 809196


View attachment 809199


Here is a link to IRS Pub 551 - https://www.irs.gov/pub/irs-pdf/p551.pdf

The following is from page 5:

View attachment 809194

If you accept that interpretation, then you did technically buy for $161 and just started usage of the property later. As I mentioned, I am not a tax advisor, but I do think there is a very good reason they call it a rebate and not a rental, and you can only do it at the time of purchase.

For us, that distinction was critical because if it had been taxable income the economics wouldn’t have worked as well.

 

[aceshigh73]

If you accept that interpretation, then you did technically buy for $161 and just started usage of the property later. As I mentioned, I am not a tax advisor, but I do think there is a very good reason they call it a rebate and not a rental, and you can only do it at the time of purchase.

I do accept that interpretation, and I like your analysis of this. Perhaps "rent" is the wrong word. The points were reassigned as the MB doc states. Although Id also agree that this was carefully chosen wording on DVD's part to not have the pts taxable.
So I guess my question now is.. If you didnt do MB and used your points what did you pay? ($183)
If you didnt do MB, but rented 2022 pts on your own, what did you pay? (??)
What if I did MB (2022), and then rented out my 2023 pts on my own as well? (??)
When does it stop becoming a deduction of the price per point?

 

[DanCali]

I do accept that interpretation, and I like your analysis of this. Perhaps "rent" is the wrong word. The points were reassigned as the MB doc states. Although Id also agree that this was carefully chosen wording on DVD's part to not have the pts taxable.
So I guess my question now is.. If you didnt do MB and used your points what did you pay? ($183)
If you didnt do MB, but rented 2022 pts on your own, what did you pay? (??)
What if I did MB (2022), and then rented out my 2023 pts on my own as well? (??)
When does it stop becoming a deduction of the price per point?

If you didn't do MB then I'd say that you paid $183.

If you rented points on your own (whether 2022 or 2023 points, or both) then your cost basis doesn't go down. You still paid $183 for the deeded property. At that point I believe renting the points would be rental income, and taxable in the year you received the money.

It's only a deduction in the cost basis because the DVD MB transaction is structured as a rebate, not a rental.

 

[thelionqueen]

I do accept that interpretation, and I like your analysis of this. Perhaps "rent" is the wrong word. The points were reassigned as the MB doc states. Although Id also agree that this was carefully chosen wording on DVD's part to not have the pts taxable.
So I guess my question now is.. If you didnt do MB and used your points what did you pay? ($183)
If you didnt do MB, but rented 2022 pts on your own, what did you pay? (??)
What if I did MB (2022), and then rented out my 2023 pts on my own as well? (??)
When does it stop becoming a deduction of the price per point?

In my case, and creative accounting, I actually paid $161 per point. I did MB, put 20% down on a CC, then paid that CC with the "rebate" from Disney. I think no matter how you justify it (or don't) it comes down to individual interpretation. To that end, I paid $161 per point lol