Schedule D for Non-Residents: Reporting Your DVC Sale

Reporting a DVC sale on your US non-resident tax return involves three forms working together: Form 8949, Schedule D, and Form 1040-NR. This guide walks through each one step by step with worked examples so you know exactly what numbers go where.

The Three Forms: How They Connect

1. Form 8949 (Where you list the individual sale details (date, price, basis, gain or loss)
2. Schedule D) Where the Form 8949 totals flow and long-term vs short-term treatment is determined
3. Form 1040-NR (The main return, where Schedule D's net gain is transferred and tax is calculated

Form 8949: Reporting the Sale Details

Start with Form 8949 (Sales and Other Dispositions of Capital Assets). Most DVC sellers have one transaction to report. Enter it in Part II (long-term transactions, for property held more than one year)) or Part I if you owned the contract for one year or less.

What to Fill In on Form 8949

• Column A (Description): "DVC Saratoga Springs 200 points, Contract #XXXXXXX"
• Column B (Date acquired): The closing date of your original DVC purchase
• Column C (Date sold): The closing date of your resale
• Column D (Proceeds): Your gross sale price (the full amount before deductions. This is the number on your closing statement or Form 8288-A
• Column E (Cost basis): What you paid (see below)
• Column F (Adjustment code): Leave blank if no adjustment is needed
• Column H (Gain or loss): Column D minus Column E (proceeds minus basis)

At the top of Form 8949, check box "C") most DVC resales do not result in a 1099-B being issued to you as a foreign seller.

Calculating Your Cost Basis

Your cost basis is what you paid for the DVC contract, adjusted for qualifying expenses. Include:

• Original purchase price (What you paid Disney (for direct purchases) or the prior owner (for resale purchases)
• Points add-ons) Additional points purchased in separate transactions, at their purchase price
• Qualifying closing costs from original purchase (Title fees, recording fees, Disney transfer fee (resale), mortgage recording tax if applicable

Do not include:

• Annual maintenance fees (MFs)) operating expenses, not capital costs
• Loan interest (if you financed the purchase, interest paid is not part of your basis

Worked Example

Long-Term vs Short-Term: Which Applies?

If you owned the DVC contract for more than one year, it is a long-term capital gain, taxed at the preferential rate) typically 0%, 15%, or 20% depending on income. For most non-resident sellers with no other US income, the rate is 15%.

If you owned it for one year or less, it is a short-term gain, taxed at ordinary income rates (typically 30% for non-residents under FIRPTA rules when there is no US-source wage income.

The holding period runs from the closing date of your original purchase to the closing date of your resale.

Schedule D: Totalling the Gains and Losses

After completing Form 8949, carry the totals to Schedule D:

• Part I (Short-Term): If your gain was short-term, report it here
• Part II (Long-Term): For gains held more than one year, report the total from Form 8949 Part II here
• Part III: Net capital gain or loss) the bottom line that flows to your 1040-NR

The net long-term capital gain flows to Schedule NEC of Form 1040-NR, where it is taxed at the applicable rate for non-residents.

Selling Expenses: Commission and Closing Costs

The broker commission and your share of closing costs at resale reduce your proceeds for tax purposes. Subtract them from your gross proceeds and report the net amount in Column D on Form 8949. This reduces your gain dollar-for-dollar (a $2,000 commission on a $26,000 sale reduces your reported proceeds to $24,000 and reduces your gain by $2,000.

What If You Have a Loss?

If your sale price was less than your adjusted cost basis, Column H shows a negative number) a capital loss. Report it on Schedule D. A capital loss means your US tax is zero (you are owed the entire FIRPTA withholding amount as a refund. See our selling at a loss guide.

Frequently Asked Questions

Do I need Form 8949 if I have only one DVC sale?
Yes. Form 8949 is required even for a single transaction. The totals flow from 8949 to Schedule D, which flows to your 1040-NR. You cannot skip 8949 and go straight to Schedule D.

What date do I use for "date acquired" if I bought directly from Disney?
Use the closing date of your original DVC purchase) the date shown on your original closing documents.

What if I cannot find my original purchase documents?
Contact Disney Vacation Development (for direct purchases) or your original title company (for resale purchases) to request a copy of the original closing statement. Without documentation, the IRS may challenge your reported cost basis.

Is the broker commission deductible?
Yes. The broker commission and other selling expenses reduce your proceeds and therefore reduce your gain. Deduct them from the gross sale price before reporting proceeds on Form 8949.