The VCCDD receives all amenity funds north of 466. It was essentially a developer controlled enitiy whcih purchased properties from the developer using tax free bonds. The question from the IRS is pretty clear, is the VCCDD a governmental authority with the right to issue those bonds. amenity funds recevied are used to make payments on the issued bonds. The methodology used by the VCCDD to determine the value of the bonds included the purchase of a stream of funds from the amenities. the newspaper article indicates this approach was appropriate, however nowhere did I see that the IRS has concurred.
I love the lifestyle here, but that does not mean that the IRS is incorrect in questioning the approach.
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