Form 1040-NR for DVC Sellers: Complete Filing Instructions

Form 1040-NR is the US non-resident income tax return. For DVC sellers, this is the form you file to report your sale, calculate your actual tax, and claim your FIRPTA refund. Here is what goes where.

When to File

You cannot file your 1040-NR until after December 31 of the year your DVC sale closed. The return is due June 15 of the following year for most non-residents. File as early in January as possible to start the IRS processing clock earlier.

Identifying Information (Page 1, Top Section)

Enter your name, address, country of citizenship, and taxpayer identification number (ITIN or SSN). If you are applying for an ITIN at the same time, attach Form W-7 and write "Applied For" in the ITIN field.

Filing Status

Non-resident aliens check the single filing status box on the 1040-NR. Joint filing is generally not available for non-residents unless specific elections are made (relevant mainly when one spouse is a US person).

Schedule D: Reporting the DVC Sale

Your DVC sale goes on Schedule D (Capital Gains and Losses) and, in most cases, on Form 8949. Enter the resort name and contract details as the asset description, the date acquired, the date sold, your sale price (proceeds), your cost basis (purchase price plus qualifying closing costs), and the resulting gain or loss.

The net gain or loss from Schedule D flows to the income section of the 1040-NR.

Claiming the Withholding Credit

On the payments section of the 1040-NR, enter the amount of FIRPTA withholding from your stamped Form 8288-A. This is the credit against your tax liability. If the withholding exceeds your tax, the difference is your refund.

Where to File

Mail your completed 1040-NR (and W-7 if needed, and stamped 8288-A) to the IRS address specified in the 1040-NR instructions for non-residents. This is the Austin, Texas processing center. Do not send it to a regular IRS address.