ROFR Thread July to Sept 2023 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Rex1993]

Also not technically advice here, but I think any gift during life (i.e., adding them to the deed as owners) means they keep the same basis that you had. I think stepped up basis only works if it passes as a result of death (pretty sure there's a term for it, but can't think right now) - so if it passes through an estate or through beneficiary, or even through a life tenancy, I think - which wouldn't apply, I don't think, to DVC. So if property is in someone name's as long as their alive, then goes to someone else upon death, I think that gets stepped up, but not 100%. If it passes because they're named as a beneficiary (investment account, bank account, etc.), it gets stepped up. Definitely if through an estate in some manner.

If it's gifted during life, which I think would apply to adding as co-tenants or joint tenants - meaning putting everyone's names on at the same time - then they keep the same cost basis.

Sorry, but neither of the prior posts are correct. Generally, if you add kids or any non-spouse as a joint tenant without them paying anything, that asset remains in your gross estate. (IRC 2040). The full value of the property contained in your gross estate will get a step up in basis. (IRC 1014).

The above post is getting confused with carry over basis on completed gifts. (IRC 1015).

 

[Disney_escape]

Also not technically advice here, but I think any gift during life (i.e., adding them to the deed as owners) means they keep the same basis that you had. I think stepped up basis only works if it passes as a result of death (pretty sure there's a term for it, but can't think right now) - so if it passes through an estate or through beneficiary, or even through a life tenancy, I think - which wouldn't apply, I don't think, to DVC. So if property is in someone name's as long as their alive, then goes to someone else upon death, I think that gets stepped up, but not 100%. If it passes because they're named as a beneficiary (investment account, bank account, etc.), it gets stepped up. Definitely if through an estate in some manner.

If it's gifted during life, which I think would apply to adding as co-tenants or joint tenants - meaning putting everyone's names on at the same time - then they keep the same cost basis.

Yes the cost basis stays the same with a gift and is used if sold prior to anyone passing, however if someone passes away the rest of the owners get a stepup in cost basis if held in JTWROS (most common titling). Example Joe and Suzy Smith own XYZ at $25, Joe passes away when XYX is valued at $100, then Suzy has a new cost basis of $100, assuming they own it JTWROS. If owned Tentants in common then it has other variables an depends.
State that have estate tax laws may vary. Not tax advise. Consult your tax person and estate attorney.

 

[Rex1993]

Yes the cost basis stays the same with a gift and is used if sold prior to anyone passing, however if someone passes away the rest of the owners get a stepup in cost basis if held in JTWROS (most common titling). Example Joe and Suzy Smith own XYZ at $25, Joe passes away when XYX is valued at $100, then Suzy has a new cost basis of $100, assuming they own it JTWROS. If owned Tentants in common then it has other variables an depends.
State that have estate tax laws may vary. Not tax advise. Consult your tax person and estate attorney.

Actually, assuming that Joe and Suzy Smith are married, you gave the example of when it wouldn’t get a full step up in basis. (IRC 2040b)

 

[Disney_escape]

Actually, assuming that Joe and Suzy Smith are married, you gave the example of when it wouldn’t get a full step up in basis. (IRC 2040b)

In Community Property states it gets 100% step up , luckily I live in a community property state. But yes in Common law state typically get 50%

 

[Rex1993]

In Community Property states it gets 100% step up , luckily I live in a community property state. But yes in Common law state typically get 50%

Unfortunately it's not that simple. These issues can be complicated. It's always better to consult with a good estate planning/tax attorney when trying to tackle these issues. As for the community property state of California, Estate of Wall (2021) 68 Cal.App.5th 168 changed the landscape dramatically.

 

[CarolynFH]

Wow, this has been interesting! Thank you, all!

 

[emchen]

@JackosinDIS

JackosinDIS---$95-$21241-200-SSR-Jun-0/22, 200/23, 200/24, 200/25- sent 6/15, passed 6/30

Hey we have twin contracts separated by 4 years (2019)!

emchen---$95-$20805-200-SSR-Jun-0/18, 200/19, 200/20-International Seller- sent 8/9, passed 8/27

Great deal!! Yours will likely close much faster than mine did as mine was an intl seller. Congrats!! Hope you love yours as much as I do mine.

 

[Sandisw]

Let get back on track for the thread and off the discussion regsrding what happens when contracts pass to others. Thst can be done in a new thread if people want to continue it!

 

[ttran160]

ttran160---$100-$18074-160-AKV-Jun-0/22, 138/23, 160/24, 160/25- sent 6/30

 

[emchen]

emchen—-$127-$60579-477-AUL-Dec-0/22, 0/23, 477/24, 477/25-SUBSIDIZED can’t close till 02/15/24- sent 06/18

 

[Magic•Happens]

Good luck everyone! Hoping for another ROFR free quarter!!!

 

[CarolynFH]

emchen—-$127-$60579-477-AUL-Dec-0/22, 0/23, 477/24, 477/25-SUBSIDIZED can’t close till 02/15/25- sent 06/18

Can’t close until 2025? Is that a typo?

 

[emchen]

Can’t close until 2025? Is that a typo?

Ooh yes. Thanks. Correcting now!

 

[HIRyeDVC]

emchen—-$127-$60579-477-AUL-Dec-0/22, 0/23, 477/24, 477/25-SUBSIDIZED can’t close till 02/15/24- sent 06/18

Wowzers. That is a phat contract! Can you say ocean view grand villas?

 

[lilsonicfan]

Wowzers. That is a phat contract! Can you say ocean view grand villas?

477 points, I thought that might be fixed week 51/52 in a 1 bedroom ocean view !

 

[Magic•Happens]

477 points, I thought that might be fixed week 51/52 in a 1 bedroom ocean view !

Plus, SUBSIDIZED DUES.....win-win.

 

[emchen]

Bingo

477 points, I thought that might be fixed week 51/52 in a 1 bedroom ocean view !

BINGO right on the money! Week 52 1 BR OV.

Once I get control I’ll be declining fixed week …until the point chart catches up to the premium (if ever). Sweet sweet SAPs!

 

[Disney_Addicted]

Disney_Addicted---$87-$9960-100-SSR-Mar-0/22, 200/23, 100/24, 100/25- sent 7/3

Got a nice little starting contract. Was planning on doing a direct VGF, but this was too good to pass up. Who knows, maybe we will still get a direct.

 

[emchen]

Disney_Addicted---$87-$9960-100-SSR-Mar-0/22, 200/23, 100/24, 100/25- sent 7/3

Got a nice little starting contract. Was planning on doing a direct VGF, but this was too good to pass up. Who knows, maybe we will still get a direct.

Omg that is a TERRIFIC contract!

Super-addictive gateway to add-on-itis! My condolences to your wallet…

 

[JackosinDIS]

@JackosinDIS

JackosinDIS---$95-$21241-200-SSR-Jun-0/22, 200/23, 200/24, 200/25- sent 6/15, passed 6/30

Hey we have twin contracts separated by 4 years (2019)!

emchen---$95-$20805-200-SSR-Jun-0/18, 200/19, 200/20-International Seller- sent 8/9, passed 8/27

Great deal!! Yours will likely close much faster than mine did as mine was an intl seller. Congrats!! Hope you love yours as much as I do mine.

Thanks contract twin!
Interesting to see the total price difference showing how much the MF has increased over that period
Can’t wait to get using the points!