Quote:
Originally Posted by spk7951
Katez,
Maybe you can help me understand one thing. If the developer claimed a gain of $53M then I would assume, hate to use that word, he paid a tax on that gain. If so would not forcing the bonds to be taxable be a sort of double taxation?
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Either I'm getting it wrong or some folks have the situation a bit confused. The way I understand it, party A (developer) built/created at his expense and sold a series of items to party B (the Village Center Development District or the Sumter Landing Community Development District). In order to get funding for this purchase, party B now issues bonds on the bond market. Party A is now out of the deal entirely, whether he made a profit or not, whether he declared the sale and paid taxes or not.
A point that I think some people get confused on here is that these bonds issued by party B have nothing to do with the individual residents and have no connection to the bond associated with individual residences. i.e., the phantom $12, $15, $17, $20K that seems to be added to your purchase price.
The new bonds were issued for the sole purpose of funding the initial purchase party B made from party A. The point of contention now is whether party B has the authority to issue tax-free bonds and whether these bonds in particular qualify to be tax-free. From this point on, it is lawyerville.
Am I totally off base?
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