Going to be new resident

[babs09]

Hello Everyone!

I have been reading all the questions and answers for a long time now and am going to try to ask a question. This is difficult because I don't exactly no what I'm doing. (trying to learn this computer stuff) Anyway, thanks to all of you for all your info! Will be moving to TV in November in the village of Bonita. Have a question about the bond. How many of you write it off as part of your property taxes? or is this even an option. Thanks
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[villages07]

Babs,

Congratulations and welcome to The Villages....you've made a great decision.

The bond and taxes..... well, technically, it is not tax-deductible (or so I have been told but I am not an accountant). However, when one writes a check to the Sumter County Tax Collector for xx dollars it is natural that one would use that exact figure on their Schedule A under the property taxes line item. Were one ever to be audited by the IRS one would simply show the tax man your cancelled check and property tax bill to prove where the figure came from. Now, should the tax man inform you that certain parts of your property tax payment are not deductible, well then, you would just look astonished and say "Really???".

I'm sorry...not trying to be cagey or imply that tax cheating is encouraged. But, I'm sure many people, here in TV and elsewhere in the US, don't know any better than to deduct exactly the amount they wrote the check for. Most folks don't realize that the property tax collection process includes other items that are not directly related to your property and are not deductible.

Any tax accountants out there to give babs a more technical reply?

[dfn8tly]

I'm NOT a tax accountant but I brought that up with mine this year. He made it very clear that the bond payments and interest on same are NOT deductible. There has been a very clear ruling by the IRS on this issue. I made several, I thought, qualified arguments but he was unmoved. If you decide to take what you believe to be a valid deduction you need to understand you might be facing a tax penalty and interest charges on the remaining amount you owe. If you fill out your own tax forms it's your decision. If you ask most accountants in TV they'll say they won't stand behind your return if you insist on the deduction.

Hey, the good news is MOST people don't get audited.

[babs09]

Thanks very much for responding. Luckily, I don't have to think of this until next year! We can't wait to get to be there.

[SNOK]

I'm NOT a tax accountant but I brought that up with mine this year. He made it very clear that the bond payments and interest on same are NOT deductible. There has been a very clear ruling by the IRS on this issue. I made several, I thought, qualified arguments but he was unmoved. If you decide to take what you believe to be a valid deduction you need to understand you might be facing a tax penalty and interest charges on the remaining amount you owe. If you fill out your own tax forms it's your decision. If you ask most accountants in TV they'll say they won't stand behind your return if you insist on the deduction.

Hey, the good news is MOST people don't get audited.

DFN8TLY - Do you have a reference for the IRS ruling you refer to. I had thought the interest portion of the bond would be deductible, but not the principal. I would like to know the source of the IRS ruling.

[JohnN]

it's not deductible, this has been discussed on other threads.

only way I know around that is to take out a home equity loan which you can deduct, and pay off the bond.