Tax Question

[Gordon82]

We will be moving down to TV soon. Correct me if I'm wrong, but the property taxes there are county taxes, and CDD taxes. The CDD taxes are made up of a maintenance portion, and a bond portion. The bond payment each year is made up of principal, interest, and an admin fee.

So there are 5 components: county tax, CDD Maintenance, CDD bond principal, CDD bond interest, and CDD bond admin.

Are all 5 of these considered property tax that can be deducted? I would certainly think the first two are, but I wasn't sure if only the bond principal might be considered property tax or all 3 parts of the bond.

Thanks in advance.

[RErmer]

I suggest you consult an accountant for this info; you'll get lots of opinions on TOTV, all of which I enjoy reading, however, not necessarily the best source for an answer I would be comfortable facing the IRS with!

[laceylady]

As I understand it, only ad valorem taxes are deductible and that means only the county property. If u look up the Mellorose lawsuit (sp?)in Californis, it is about CDD charges. Tax preparers there had been deducting this for years. The IRS has instructed them to stop doing this. No part of the bond is tax deductible is what I have been told. We paid our bond off after several months because we could not justify paying the 7.97% interest for 10 years (amt. Of time before they can be reissued at a lower interest rate). You will undoubtedly get many answers to your question. AARP does a large number of taxes for Villagers. You can probably find their phone no. If you search this site. They know the correct answer to your question and the reasons why.

[KeepingItReal]

We will be moving down to TV soon. Correct me if I'm wrong, but the property taxes there are county taxes, and CDD taxes. The CDD taxes are made up of a maintenance portion, and a bond portion. The bond payment each year is made up of principal, interest, and an admin fee.

So there are 5 components: county tax, CDD Maintenance, CDD bond principal, CDD bond interest, and CDD bond admin.

Are all 5 of these considered property tax that can be deducted? I would certainly think the first two are, but I wasn't sure if only the bond principal might be considered property tax or all 3 parts of the bond.

Thanks in advance.


Only county property taxes are deductible.

Bond principal, interest, and admin fee, are NOT deductible and neither is the annual maintenance or fire fee which also appears on the tax bill.

Some additional info here:

https://www.talkofthevillages.com/forums/nuts-bolts-villages-139/bond-tax-deductible-103720/

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/interest-portion-bond-payment-tax-deductible-54668/index6.html

[Gordon82]

Only county property taxes are deductible.

Bond principal, interest, and admin fee, are NOT deductible and neither is the annual maintenance or fire fee which also appears on the tax bill.

Some additional info here:

https://www.talkofthevillages.com/forums/nuts-bolts-villages-139/bond-tax-deductible-103720/

https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/interest-portion-bond-payment-tax-deductible-54668/index6.html

Thank you very much. It is clear only the county tax is deductible. Not the answer I was hoping for, but the correct one.

[Mr.Kris]

So, if you buy a home in Lake County (Fruitland Park) which doesn't allow bonds for infrastructure, the price of the infrastructure is included in the cost of the home and the county property taxes are deductible on your federal return as an ad valorem tax, as well as the interest on the mortgage which includes the financing of the infrastructure. Yes?

[Bogie Shooter]

Why, of course.

[NYGUY]

Then again, the answer to the question might be determined by how aggressive your (or your tax lawyers) interpretation of the law is.

[Biker Dog]

Don't forget School Tax.