Quote:
Originally Posted by ilovetv
This is exactly what I've thought all along. These "non-taxable" bonds had to be legally approved for selling them as such, and if the lawyers/bond consul made a mistake in saying they were "non-taxable" under IRS rules, it would be malpractice on their part.
Why would we home buyers be liable for a seller's misrepresentation to us?
|
Bond attorneys are not insurers.. and I would think the employment contract states that they are not responsible should the IRS find the bonds are taxable.
I have never gotten an answer to my question, which is.. couldn't the district have gotten a private letter ruling from the IRS BEFORE the bonds were sold whether they would be non taxable?? I think they are done frequently. Just google IRS private letter rulings to learn more but basically you submit your situation before you act on the tax consequences and the IRS will submit a ruling which applies to you before you act. I sure wish someone with tax law experience could answer the question, if one was obtained on these bonds, and if not, why not??
My opinion on this entire issue is simply the villagers and potential buyers have a right to know the facts. What can possibly be wrong with that?