Tax Withholding Information
Understanding Your Tax Obligations When Selling DVC
When selling your Disney Vacation Club ownership, understanding applicable tax withholding requirements is essential for a smooth transaction. Two primary tax regulations may affect your sale: FIRPTA (Foreign Investment in Real Property Tax Act) and HARPTA (Hawaii Real Property Tax Act). These federal and state laws require that a portion of the sale proceeds be withheld and remitted to tax authorities under certain circumstances.
FIRPTA applies to foreign nationals selling U.S. real property interests, including timeshare and DVC contracts. The IRS requires 15% of the gross sales price to be withheld unless specific exemptions apply. HARPTA, on the other hand, is a Hawaii state requirement that affects anyone selling property located in Hawaii—including Disney's Aulani resort—if the seller is not a Hawaii resident. HARPTA typically requires 7.25% withholding of the sales price.
Understanding which tax applies to your situation helps you plan accordingly and avoid surprises at closing. Select the appropriate guide below to learn more about your specific requirements, available exemptions, and how to navigate the withholding process successfully.
Select the tax information that applies to your situation
FIRPTA
Foreign Investment in Real Property Tax Act
Applies to foreign sellers of U.S. real property, including DVC contracts. Learn about withholding requirements and exemptions.
Learn MoreHARPTA
Hawaii Real Property Tax Act
Applies to sellers of Hawaii real property, including Aulani DVC contracts. Understand Hawaii-specific withholding requirements.
Learn MoreNot sure which applies to you? FIRPTA applies to foreign (non-U.S.) sellers of any DVC property. HARPTA specifically applies to sellers of Aulani (Hawaii) contracts, regardless of residency.
