Your tax bill has two parts, the ad valorem part and the non-ad valorem part. "Ad valorem" means "based on value". The ad valorem part is tax deductible on your Federal tax return, but the non-ad valorem part is NOT deductible. The non-ad valorem part includes the bond principal and interest payments and the maintenance fee for the common areas of the development. These are not based on the specific value of your house, and, therefore, they are not deductible on your Federal tax return.
Last edited by retiredguy123; 11-02-2016 at 11:30 PM.
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