Quote:
Originally Posted by aljetmet
I think the penalty that the IRS would impose on the issuer of the bonds would more than compensate the IRS for the revenues it lost due to the tax-exempt status of the bonds. I agree, the bonds would have to be purchased back by the issuer. The question is at what value? Based on current interest rates, the value should be much higher than par. That would be very very expensive to the issuer of the bond. Yes, where would the money come from? I'm sure the developer would just eat it. He gets such high praises from the residents.... Which he really deserves even with this issue. He had accountants and attorneys set this up. This is America, need to be a true capitalist.
My guess is as good as anyone elses. It's only a guess.
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Remember that the Developer is The Villages of Lake Sumter, Inc., a corporation, not the Morse family. Do you have any reason to believe that that corporation has adequate assets to cover the potentially huge liability to the Center Districts (which own our amenities) resulting from the IRS's sustaining its position?