Quote:
Originally Posted by Bill14564
Yes, apples and oranges and kumquats. You mentioned the maintenance/amenity fee but those are two different things. The annual maintenance fee and the bond are also two different things.
Monthly: amenity fee
Yearly: maintenance fee
One time: bond (though that is amortized over 30 years)
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You're correct and your wording is much more precise than what I used. In which case, the questions (regarding the deductibility for tax purposes), are:
The Bond Payment (& associated interest) is clearly not deductible. Common sense would suggest that's it's simply a capital cost when buying your home. In a more traditional arrangement (non CDD), the Developer would have paid for the infrastructure and that cost would be reflected in the price of the house. In the case of TV, the cost of the home is separated into (2) parts ... the home itself and the infrastructure. No reason it should be deductible.
Maintenance costs for the CDD, which under a more typical scenario (again, non-CDD community), that amount would generally be included in the Ad Valorem tax bill? Which would make it Tax Deductible.
The Amenity Fee is a horse of a different color. Things like maintaining "walking paths", dog parks, etc., would normally be carried in a town's budget, included in taxes and be deductible. I'm guessing (& admittedly, I don't have a clue) in TV, they're carried in the Amenity Fee and not in the Maintenance Fee? It seems they should be deductible for CDD residents, as they would be for residents of a traditional government authority. I can understand why the portion of the Amenity Fee that provides for maintenance of the clubhouses & Executive Golf courses may not be deductible, although that's a rather fine distinction. If a town has a "community house with a swimming pool" and included the expense in it's general budget, it would become part of one's annual tax bill and be deductible.