I have a LLC, can I deduct DVC

[Cardiac1968]

I have an LLC that we use for collecting and selling Disney Art.  We also use it to rent out our points for DVC (classified as revenue).  Can I deduct the annual dues as a business expense?  If I purchase more points, how can I account for the expense in the purchase year or amortize the expense?

[ThomasM125 · Accepted solution]

You can deduct the annual dues to the extent you use the membership for rental purposes. If you never use the points personally, you can deduct 100% of the dues, otherwise, the deduction would be reduced by the percentage of personal use involved.

You can only deduct the points in the year that you rent them out. Thus, you may have an inventory of points at the end of the year. You can report those as inventory on your business entries in TurboTax, along with the associated purchase amount. In the business section of TurboTax, look for the Inventory/Cost of Goods Sold section, that is where you enter your purchases and inventory.