Selling DVC Points vs Contracts: Tax Implications
If you ask a DVC member what they are selling, many will say "points." But what you are actually selling is a deeded real property interest — a contract that entitles you to a certain number of annual points and that is attached to specific real estate at a Disney resort. This distinction matters significantly for FIRPTA and your taxes.
What Is Actually Being Sold
A DVC membership is a deeded timeshare interest. You own a fraction of real property at a specific Disney resort. The "points" are simply a measure of how much of that fractional real property you own and how much vacation time you can book each year. When you sell your DVC membership, you are selling a deeded real property interest — which is exactly what FIRPTA regulates.
The IRS does not see you as selling vacation points. It sees you as selling US real property. The fact that the property is measured in points rather than square feet or acres does not change the tax treatment.
Why This Matters for Your Cost Basis
Because you are selling a capital asset (real property), your tax is calculated as a capital gain: sale price minus your cost basis equals your taxable gain. If you had been selling some kind of personal property or intangible right (like a club membership that isn't real property), different tax rules might apply. But DVC is definitively real property, so the capital gains framework applies.
Can You Sell Points Separately?
Some DVC members rent out their points each year rather than selling the contract. Renting points is a different transaction entirely — it is rental income, not a property sale, and it is taxed differently (as ordinary income to a non-resident under FIRPTA rental rules). This guide focuses on selling the contract outright. If you are renting your DVC points, consult a tax professional about the separate FIRPTA rules for rental income from US real property.
Point Contracts vs Member Vouchers
The only thing you can sell in the DVC resale market is your deeded contract. You cannot separately transfer your current-year's loaded points to a buyer without a contract transfer. Whatever points are currently on the account typically transfer with the contract at closing.
