Form 1040-NR for DVC Sellers: Complete Filing Instructions

Form 1040-NR is the US tax return for non-resident aliens. After your DVC sale closes, filing a 1040-NR is how you reclaim most or all of the 15% FIRPTA withholding (it does not come back automatically. Here is a complete guide to what the form requires, what to attach, and where to send it.

When Can You File?

You cannot file your 1040-NR until after December 31 of the year your DVC sale closed. The return covers the entire tax year (January 1 through December 31), so you must wait for the year to end. If your sale closed in March 2025, your 1040-NR covers tax year 2025 and can be filed from January 2026.

The standard due date for non-residents with no US wages is June 15 of the following year. You can extend to October 15 by filing Form 4868 before June 15. File as early as possible) January or February (because the refund clock starts when the IRS receives your return.

Forms You Need

• Form 1040-NR) the main non-resident return
• Form 8949 (lists each capital asset sale with dates, amounts, and gains/losses
• Schedule D) summarises Form 8949 totals and calculates net capital gain or loss
• Form 8288-A (your FIRPTA withholding receipt (stamped copy from IRS or unstamped copy from closing agent)
• Form W-7) only if you are also applying for a new ITIN (attach to the 1040-NR)

Filing Form 8949: The DVC Sale

Form 8949 is where you report the individual transaction details. For a DVC sale held more than one year, use Part II (Long-Term). Fill in:

• Column A (Description): "DVC [Resort Name] [Point Count] pts, Contract #[number]"
• Column B (Date acquired): closing date of your original DVC purchase
• Column C (Date sold): closing date of your DVC resale
• Column D (Proceeds): your net sale proceeds (gross price minus broker commission and selling costs)
• Column E (Cost basis): original purchase price plus qualifying closing costs from original purchase
• Column H (Gain or loss): Column D minus Column E
• Box at top: check box C (transaction not reported on Form 1099-B)

Schedule D: Summarising the Gains

After completing Form 8949, carry the totals to Schedule D. Long-term gains or losses go to Part II. The net result flows to your 1040-NR. If you have a net long-term gain, it is taxed at the preferential long-term capital gains rate (typically 15% for non-residents).

Form 1040-NR: The Main Return

On Form 1040-NR itself, you will:

• Report your name, ITIN (or SSN), US mailing address for refund delivery, and foreign address
• Enter the net capital gain from Schedule D on the appropriate line
• Calculate your tax on Schedule NEC (Net Investment Income for non-residents)
• Enter the total withholding payments on the payments section (this is where your Form 8288-A amount goes
• Calculate the refund: payments minus tax owed
• Sign and date the return

How to Claim the FIRPTA Withholding Credit

The amount withheld at closing (shown on Form 8288-A) is entered as a payment on Form 1040-NR. This reduces your net tax due. If the withholding exceeds your actual tax (which it almost always does), the difference is shown as a refund on the return.

Attach your Form 8288-A to the return. If the stamped IRS copy never arrived, the unstamped copy from your closing agent is acceptable) do not delay filing while waiting for the stamped version.

Where to Mail Form 1040-NR

Mail Form 1040-NR with all attachments to:

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215

Use a trackable international mailing method (FedEx, DHL, USPS certified mail) and keep the tracking confirmation until your refund arrives. The IRS does not acknowledge receipt of mailed returns (tracking is the only proof you have.

No Electronic Filing

Form 1040-NR must be filed by paper mail. There is no electronic filing option for non-resident returns claiming a FIRPTA withholding credit. The IRS does not offer direct deposit for non-resident refunds) your refund arrives as a paper check mailed to the address on your return.

What Happens After Filing

The IRS processes non-resident returns manually (allow 4-6 months. The refund check is mailed to the address on your return. Make sure the address you enter is reliable for the next 6-12 months. If you move, file a change of address using Form 8822 immediately after your move.

If you included Form W-7 for an ITIN application, the ITIN must be processed (7-11 weeks) before your return enters the processing queue) adding to your total wait time.

Frequently Asked Questions

Can I file Form 1040-NR online?
No. Form 1040-NR must be filed by paper mail. There is no electronic filing option for non-resident returns claiming a FIRPTA withholding credit.

What is the due date for Form 1040-NR for a DVC seller?
June 15 of the year following your sale, with an optional extension to October 15 via Form 4868. File as early as possible (January or February) to start the refund clock sooner.

Do I need Form 8288-A to file my 1040-NR?
You need documentation of the withholding amount. The stamped Form 8288-A from the IRS is ideal, but the unstamped copy from your closing agent is also acceptable. Do not delay filing while waiting for the stamped version.

How does the IRS send the FIRPTA refund?
By paper check mailed to the address on your 1040-NR. There is no direct deposit option for non-resident refunds. Make sure the address on your return is a reliable permanent address.

Can I file Form 1040-NR myself without a tax professional?
Technically yes, but Form 1040-NR, Schedule D, and Form 8949 require accurate cost basis calculations and correct tax treatment for non-residents. Most sellers find professional preparation worthwhile (the fee ($400-$800) is a fraction of the refund recovered.