How to Maximize Your FIRPTA Refund

The single most powerful thing you can do to maximize your FIRPTA refund is to accurately build your cost basis. Your cost basis reduces your taxable gain, which reduces your actual tax, which increases the amount you get refunded from the 15% withheld at closing.

What Goes Into Your Cost Basis

Your cost basis starts with the purchase price you paid for the DVC contract. Add to that any closing costs you paid when you originally purchased: title fees, recording fees, escrow fees, and the Disney transfer or admin fee. These additions to basis reduce your gain dollar for dollar.

Annual maintenance fees, travel costs, and membership fees do not count. Only costs that were part of acquiring the property in the first place increase your basis.

Find Your Original Documents

The closing statement from your original DVC purchase is your most valuable document. It shows exactly what you paid and what fees were included. If you cannot find it, contact the resale broker or title company that handled your purchase. Many keep records for seven to ten years. Disney member services may also have records of your original purchase price if you bought direct.

Sell at a Loss? File Anyway

If your sale price is lower than your cost basis, you have a capital loss. Your tax on a loss is zero. But the IRS still withheld 15% at closing. Filing a 1040-NR is the only way to recover that entire amount. Every dollar of withholding is refundable when there is no taxable gain.

Use the Long-Term Rate

Most DVC sellers have owned their contracts for more than one year. That qualifies you for the long-term capital gains rate of 15% for non-resident sellers. If you had held for a year or less, the ordinary income rate (up to 37%) would apply. Selling after the one-year mark keeps your actual tax as low as possible.

Use our FIRPTA tax estimator to calculate your estimated refund based on your actual numbers.