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Thread: Bond , is it tax deductible?
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Old 02-03-2014, 02:52 PM
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TrudyM TrudyM is offline
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Quote:
Originally Posted by mulligan View Post
There is no maintenance charge on the bond. The charge on your tax bill is your annual common area maintenance charge. The bond amount, principle and interest are NOT tax deductible.
Ok why is the interest not deductible? The principal if they consider it part of the home equity purchase but the interest. A portion of the bond payment (not the maintenance chge) is interest. If you include an amount in your home loan that provides enough to pay off the bond you can deduct the interest from that. Then when you are paying it separate why is the interest portion of the bond payment not deductible doesn't make sense to me.
The IRS site says "Qualified residence interest is interest you pay on a loan secured by your main home or a second home" The bond is secured by your home so why wouldn't the interest be deductible?
Personal credit interest isn't deductible but this seems like apples to apples with home loan(residential ) interest. Can someone explain it to me.
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