Selling Aulani DVC: Your Complete Tax Checklist From Start to Finish

Selling a DVC contract at Walt Disney World is relatively straightforward from a tax standpoint. You close, you report the gain on your tax return, you move on. Selling an Aulani DVC contract is a different animal entirely. Because Aulani sits on the island of Oahu in Hawaii, the state's HARPTA withholding law kicks in and adds an entire layer of tax paperwork that mainland DVC sellers never have to think about.

I've worked with hundreds of Aulani DVC sellers over the years, and the single biggest source of stress isn't the withholding itself. It's not knowing what to expect. Sellers who walk into the process prepared get through it cleanly, collect their refunds, and move on. Sellers who don't end up scrambling for documents, missing refund deadlines, or worse, leaving $1,500 to $2,000 sitting at the Hawaii Department of Taxation because they never filed the right form.

This checklist covers every tax step from the moment you decide to sell your Aulani DVC contract through tracking your final refund check. Print it out, bookmark it, whatever works. Just don't wing it.

Why Aulani Is Different From Every Other DVC Resort

All eleven Walt Disney World DVC resorts sit in Florida, a state with no income tax. When you sell a DVC contract at Saratoga Springs or Riviera, there's no state withholding, no state refund filing, no state tax forms. You report the sale on your federal return and you're done.

Aulani is the only DVC resort in Hawaii, and Hawaii has HARPTA: the Hawaii Real Property Tax Act. HARPTA requires the buyer (or the closing agent handling the sale) to withhold 7.25% of the gross sale price and send it to Hawaii's tax department. This applies to virtually every seller who doesn't live in Hawaii full-time.

And if you're a non-US person (Canadian, British, Australian, etc.), you also face federal FIRPTA withholding of 15% on top of HARPTA. That's 22.25% of your sale price withheld at closing. For a deeper comparison of these two taxes, see our guide on HARPTA vs FIRPTA.

Phase 1: Before the Sale

Preparation is everything. The most common mistake we see is sellers who list their Aulani contract without doing any tax homework first, then panic when closing is two weeks away.

Find Your Original Purchase Closing Statement

This is the single most important document for your tax filings. Your original closing statement from when you bought the Aulani contract shows what you paid, which is your cost basis. Your capital gain (and therefore your tax) is the difference between what you sell for and what you paid.

If you bought directly from Disney, look for the closing packet Disney Vacation Development sent you. If you bought resale, the title company that handled your purchase should have provided a closing statement.

Can't find it? Contact the broker or title company that handled your original purchase. Many keep records for 7 to 10 years.

Determine Your Tax Status

• US citizen or permanent resident living outside Hawaii: Subject to HARPTA only. You'll file for a HARPTA refund with Hawaii and report the sale on your federal Form 1040 Schedule D.
• Hawaii resident: Potentially exempt from HARPTA (see below). You still report the gain on your Hawaii resident return (Form N-11).
• Non-US person: Subject to both HARPTA (7.25%) and FIRPTA (15%). You'll file with both Hawaii and the IRS.

Check the Hawaii Resident Exemption

If you live in Hawaii full-time, you may be exempt from HARPTA withholding. The requirements are specific: you must have maintained your principal place of abode in Hawaii for the entire two tax years preceding the sale, and the sale price must be $300,000 or less (every DVC contract qualifies on price).

Get a US ITIN if You Need One

Non-US sellers who don't have a US Social Security Number or Individual Taxpayer Identification Number (ITIN) need one to file US tax returns and claim refunds. You apply using IRS Form W-7. ITIN applications currently take 7 to 11 weeks to process, sometimes longer. Start early.

Estimate Your Tax Liability

Before you list your contract, run the numbers so you know what to expect. Use our HARPTA tax estimator to get a quick estimate, or do it by hand:

Example: US resident selling for $26,000 (purchased for $20,000)

• Capital gain: $26,000 minus $20,000 = $6,000
• HARPTA withheld at closing: 7.25% of $26,000 = $1,885
• Estimated actual Hawaii tax (~6% of gain): $360
• Estimated HARPTA refund: $1,885 minus $360 = $1,525

Choose a Title Company Experienced with Hawaii DVC

Not every title company understands HARPTA. Use one that regularly handles DVC resale closings and specifically knows Hawaii's withholding requirements. Your resale broker should be able to recommend one.

Understand the DVC Transfer Timeline

DVC contracts don't close overnight. After a buyer and seller agree on terms, Disney has 30 days to exercise its Right of First Refusal (ROFR). If Disney waives ROFR, the title company processes the closing (2 to 4 weeks), then Disney processes the membership transfer (2 to 4 more weeks). Plan 4 to 8 weeks minimum from accepted offer to completed transfer.

Phase 2: At Closing

Review the Closing Statement Carefully

Before signing, verify that the HARPTA withholding line shows exactly 7.25% of the gross sale price. Gross means the full contract price before broker commissions, closing fees, or any other deductions. On a $26,000 sale, HARPTA withholding should be $1,885.00.

The most common closing statement error we see is HARPTA calculated on the net proceeds instead of the gross price.

Verify FIRPTA Withholding (Non-US Sellers)

If you're a non-US person, your closing statement should show a separate FIRPTA line item at 15% of the gross sale price.

Get Copies of Every Form

Before you finalize closing, make sure you have copies of:

• The final closing statement / settlement sheet
• Form N-288 (the closing agent files this with Hawaii)
• Form 8288 and Form 8288-A if FIRPTA applies
• Any residency certificates or exemption documents

Save Everything Digitally and Physically

Scan every document and save it to cloud storage. Also keep the physical copies in a labeled folder. You'll reference these documents multiple times over the next 6 to 12 months.

Phase 3: After Closing, Immediately

File Form N-288C for Your HARPTA Refund

This is the most important post-closing step. Form N-288C is your fast track to getting excess HARPTA withholding back. You can file it immediately after closing. Attach copies of your sale closing statement, your original purchase closing statement, and Form N-288. For a detailed walkthrough, see our guide on how to file for a HARPTA refund.

Make Copies of Everything You Mail

Before you put that N-288C in the mailbox, photocopy or scan the entire package. If Hawaii says they never received it, you'll have proof of what you sent.

Set Calendar Reminders

• 90 days after filing N-288C: Start monitoring for your Hawaii refund
• 120 days after filing: Call Hawaii at (808) 587-4242 if no refund received
• January of the following year: Time to file your federal return
• April 15/20: Federal and Hawaii filing deadlines

Phase 4: After Closing, Tax Season

Non-US Sellers: File Form 1040-NR for Your FIRPTA Refund

After the tax year ends, file IRS Form 1040-NR. Report the Aulani sale, calculate your gain, apply the applicable capital gains tax rate, and claim credit for the FIRPTA withholding shown on Form 8288-A. If you don't have a US ITIN yet, include Form W-7.

US Citizens: Report on Form 1040 Schedule D

US citizens and permanent residents report the Aulani sale on Schedule D of their regular Form 1040. Long-term capital gains rates apply if you held the Aulani contract for more than one year.

Home State Return

If your home state has an income tax (California, New York, New Jersey, etc.), you'll report the capital gain on your state return too. Some states offer a credit for taxes paid to other states.

Canadian Sellers: T1 with Foreign Tax Credits

Canadians report the Aulani sale on their T1 return. Claim foreign tax credits on Form T2209 for both the US federal tax and Hawaii state tax you actually paid (after refunds). A cross-border tax professional is strongly recommended. For the complete breakdown, see our guide for Canadian DVC sellers.

Phase 5: Tracking Your Refunds

Hawaii HARPTA Refund (Form N-288C)

Expected timeline: 3 to 6 months from filing. If you haven't received your refund after 4 months, call the Hawaii Department of Taxation at (808) 587-4242.

Federal FIRPTA Refund (Form 1040-NR)

Expected timeline: 4 to 6 months from filing. For status inquiries, call the IRS International line at 1-267-941-1000.

What to Do if Your Refund Is Delayed

• Missing or incomplete documents. Check your mail regularly for letters from Hawaii or the IRS requesting additional information.
• Math errors. If your calculation doesn't match what the agency computes, they'll flag it for review.
• Processing backlogs. Filing early, before tax season rush, helps.
• ITIN processing delays. If your 1040-NR included a W-7, everything waits until the ITIN is issued.

Don't Leave Money on the Table

The total refund for most Aulani DVC sellers ranges from $1,200 to $5,000 depending on the sale price, the gain, and whether both HARPTA and FIRPTA apply. That's real money, and it belongs to you.

Every step on this checklist exists because I've watched sellers skip it and pay the price. Don't be that seller. If you're feeling overwhelmed, start with the tax estimator to see what your numbers look like. Check our FAQs for quick answers. And if you want to understand what HARPTA is and how it works before going through this checklist, we've got you covered there too.