Schedule D for Non-Residents: Reporting Your DVC Sale
Your DVC sale is a capital asset transaction that gets reported on Schedule D (Capital Gains and Losses) attached to your Form 1040-NR. If you are not a tax professional, the form can look intimidating. Here is what each section means for a DVC seller.
Form 8949 First, Then Schedule D
Most DVC sellers report their sale on Form 8949 (Sales and Other Dispositions of Capital Assets) before the totals flow to Schedule D. On Form 8949, you enter each sale separately: the description of the asset (e.g., "DVC Saratoga Springs 200 points"), the date acquired, the date sold, the sale price (proceeds), your cost basis, any adjustments, and the resulting gain or loss.
Long-Term vs Short-Term
If you owned the DVC contract for more than one year, it is a long-term capital gain (or loss). Long-term gains are taxed at a preferential rate — 15% for most non-resident sellers. Short-term gains are taxed as ordinary income, which can be as high as 37%. Most DVC owners held their contracts for several years, so long-term treatment applies.
Use Part II of Form 8949 for long-term transactions, then carry the totals to Part II of Schedule D.
What Is the Sale Price?
The sale price is the gross amount you received from the buyer before any deductions. Use the gross proceeds listed on your closing statement or Form 8288-A. Do not net out the broker commission or closing costs here — those go into the cost basis calculation or as selling expenses on the form.
What Is the Cost Basis?
Your original purchase price plus qualifying closing costs from your original purchase (title fees, recording fees, Disney transfer fee). Do not include annual maintenance fees. See our cost basis guide for a complete breakdown of what counts.
Gain or Loss
Proceeds minus adjusted cost basis equals your capital gain or loss. A positive number is a gain. A negative number is a capital loss. Even if you have a loss and owe zero tax, you must file the return to recover the 15% that was withheld at closing.
