[laceylady]

Originally Posted by tv2016

Thank you for sharing your understanding regarding a rental situation. Am I understanding this correctly: (1) the annual CDD maintenance expense (about $500) can be deducted as an expense, (2) the annual interest on the bond can be deducted as an expense, (3) the amount of the remaining bond balance when I bought the re-sale house (it was available for rental right away) should be added to the basis of the property?

Yes, that is the way I read IRS pub 527 for RENTALS. None of this is deductible for an owner occupied home. Both our Villages Sales Rep. and loan officer at citizens made the owner occupied info clear before we built in April 2012.