View Full Version : Tax Deductible???
poromo
08-22-2008, 01:04 PM
Are payments made to pay off the bond tax deductible?
retiredguy
08-22-2008, 01:57 PM
No, only the interest on the bond itself, same as home loan interest. I'm speaking of Federal, not sure about the state.
JohnN
08-22-2008, 02:48 PM
nope
poromo
08-22-2008, 02:55 PM
WOW what a bumma.....
Sidney Lanier
08-22-2008, 05:55 PM
However (it's my understanding), if you take an equity line of credit against the house and use the proceeds to pay off the bond, then the interest portion of the payments on the equity line of credit are federally tax deductible since it's equivalent to a mortgage on the house. If I didn't get this right, someone please fill me in. Thanks!
WLAN56
08-22-2008, 06:38 PM
I won't say Yes and I won't say No. But I suggest that you first find out what exactly makes up the Bond Assessment. Then contact IRS. You will need to talk to several departments as each portion of the Bond may come under a different area of responsibility. Document everyone you talk to (by name and ID number) in case your actions are ever questioned. And then do what you feel is appropriate.
jeffy
08-22-2008, 11:15 PM
nope
:agree: In one word
JohnN
08-22-2008, 11:41 PM
poromo, this has been discussed on another thread,
not only the principal isn't deductible, the interest isn't either,
there's a lot of misinformation on this.
something to do with non ad valorum (sp??) , someone else explained it in detail,
but short answer again...
nope, not any of it
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