Questions about "The Bond"

[Laker14]

Who imposes the bond?

Where does the money go?

Is it considered a RE Tax for tax deduction purposes, or is it part of the principle?

Thanks,
Dan L

[OpusX1]

I am not a real estate attorney. It is my understanding that the bond payments pay off bonds issued by the governing districts. These bonds were/are used to pay for infrastructure like roads sewers waterlines and the like. I do not believe the bond payments are deductible but you can check with an account/tax attorney to be sure.

[darylj2000]

The Bond is deductable just like your intrest on your house. This was told to me by The Bank of the Villages.

[OpusX1]

Only the interest on the bond is deductible not the principal payment.

[TomW]

Does one receive a statement of how much of the amount paid went for interest or is that a spreadsheet exercise for the owner?

[Bogie Shooter]

Does one receive a statement of how much of the amount paid went for interest or is that a spreadsheet exercise for the owner?
It is on your annual property tax statement.

[Bogie Shooter]

This is from the "nuts and bolts" thread.
Bonds
The purpose of the bond is to recover the costs of the infrastructure (sewer, water, streets, electric, cable, etc.) in your section. The bond is calculated based on the cost of the infrastructure for that section divided by the number of houses in the section. The annual amount of the bond payoff will be part of your property tax bill. I am pretty sure that the bond is a 30 year bond at 7% interest. It is like a 30 year mortgage. The bonds are fairly high south of 466. The bond goes down very little each year as most of the payment goes to interest. Be very sure to cover the bond, bond payment, length of the bond interest rate and payoff options with your sales rep or realtor. If you are buying a pre-owned property, be sure to find out how much is left on the bond

[Number 6]

As it stands, it is my understanding that neither the principal or interest is tax deductible. You can take out a home equity loan and pay off the Bond. The interest on a home equity loan is deductible.
Check with your tax professional.

[Whalen]

As it stands, it is my understanding that neither the principal or interest is tax deductible. You can take out a home equity loan and pay off the Bond. The interest on a home equity loan is deductible.
Check with your tax professional.


That's what we were told by the TV agent when we were looking at houses.