Talk of The Villages Florida - View Single Post - Bond Payment is really 7.5%
Thread: Bond Payment is really 7.5%
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Old 06-21-2010, 10:16 AM
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aljetmet aljetmet is offline
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Default Bond deduction
Quote:
Originally Posted by UH1B913 View Post
Most of us received a letter in May stating that how much is outstanding of the Bond Payment on our property. It's a 30 yr payment at 6.93%. When we pay our annual assessment there is also an additional "administrative fee" of $45 for the county to pay The Developer. Our home for example had an original bond of about $7000. When you do the math on these payments - one is paying about 7.5% to TD. The letter addressed the statement "Can I deduct the bond assessment on my property tax bill from my income txes at year-end?" The answer was "contact you accountant or financial advisor.....". The Villages with all their knowledge of what's legal for them to do "according to Federal law" knows full well that these are not deductible. It was addressed in the IRS audit again this past year. Now if one has an equity loan available on their home, one can take out the amount to pay off the bond and LEGALLY deduct that from income taxes. I guess from the legal standpoint AND not paying TD 7.5% per year and not being able to negotiate it down - the decision is easy to make.
I assume you mean that the interest you pay on your home equity loan is tax deductable. Not the actual cost of the bond.
As I am not an owner yet, I would take into consideration if a re-sale has bond left or not. If I do buy a new house I would probably pay off the bond. I would make sure that instructions are left to recoup some of the bond cost if we sold before 30 years...