Quote:
Originally Posted by KEVIN & JOSIE
Is there a reason the bonds are separate from the house cost? At least if you had a mortgage it would be deductible.
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Yes. The bond is based on the total cost for the infrastructure for a particular area of construction. Every house of the same type (designer, villa, etc.) constructed within that area will be assessed the same bond amount regardless of the size or price of the house. So, a $500K designer house will have the same bond amount as a $350K designer house. The bond interest is not tax deductible because it is not based on the value of the house. The IRS only allows tax deductions for mortgage loans that are based on the value of the house. And, obviously, by not including the infrastructure cost in the price of the house makes it easier to sell the houses, and easier to get mortgages.