How to Calculate Your DVC Cost Basis: A Step-by-Step Guide
Your cost basis is the starting point for calculating your capital gain when you sell your DVC contract. A higher cost basis means a smaller gain, which means less tax and a larger FIRPTA refund. Getting this number right is one of the most important steps in maximizing your refund.
What Counts as Cost Basis
Your cost basis begins with the purchase price you paid for the DVC contract. Add to this any closing costs you paid when purchasing: title insurance, escrow fees, recording fees, and the Disney transfer or administrative fee charged at the time of purchase. These amounts are added to your basis dollar for dollar.
What Does Not Count
Annual maintenance dues do not increase your basis. Neither do special assessment fees, travel expenses to use the timeshare, or membership fees. These are ongoing expenses of ownership or use, not capital costs of acquisition.
Adding Closing Costs from the Original Purchase
Many sellers forget that the fees they paid when they bought the contract also increase their basis. If you paid $20,000 for the contract but also paid $350 in closing costs and a $200 Disney transfer fee, your actual cost basis is $20,550. That reduces your taxable gain by $550 compared to using just the purchase price.
Tracking Down Your Documents
The single most important document is your original closing statement from the DVC purchase. It shows the purchase price, all fees paid, and the total amount you paid to acquire the property. If you purchased directly from Disney, your original purchase agreement and payment records serve the same purpose.
If you cannot locate these documents, contact the title company or resale broker that handled your original purchase. Many keep records for 7 to 10 years. If all else fails, bank records showing the wire transfer or payment can help reconstruct the purchase price, and a tax professional can work with the available evidence.
Use our tax estimator to see how your cost basis affects your estimated refund.
