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Originally Posted by applesoffh
Question...I read the article in today's paper..even read it out loud to my husband to see if I understood everything correctly. Obviously, I did not. My understanding was that there were 2 CDDs specific to the IRS ruling, and was specific to bonds purchased by residents (and marketed as IRS deductible) by the Developer within a certain timeframe (prior to 2008). Is my interpretation flawed?
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Totally flawed. The bonds were not purchased by residents. They are sold to investors, usually institutional investors. The bonds in question have nothing to do with the bond on your house.
(from Ritchie's article) " . . . the Village Center district won't owe the IRS a nickel — the tax burden falls wholly on the holders and the buyers of the bonds. They would have to pay taxes on the interest they collected as the loans were being repaid."