Bond , is it tax deductible?

Bond , is it tax deductible?

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  #11  
Old 02-03-2014, 04:02 PM
Bogie Shooter Bogie Shooter is offline
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Originally Posted by TrudyM View Post
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.
I hope you are right.........I will file amended returns in a flash. Let us know when you determine that it is legal.
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  #12  
Old 02-03-2014, 04:21 PM
Villageswimmer Villageswimmer is offline
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To be deductible, you should receive a Form 1098. I've never received one related to the bond. Has anyone else?
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  #13  
Old 02-03-2014, 04:39 PM
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TrudyM TrudyM is offline
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Originally Posted by Bogie Shooter View Post
I hope you are right.........I will file amended returns in a flash. Let us know when you determine that it is legal.
I said it was logical. No one ever accused the IRS tax code as being logical. And those who can, do and those who can't work for the IRS or at least at the lower levels they save the brains for going after the big boys.

The following is a digression and feel free to ignore.
I have had the following happen.
Paid 4th quarter estimated taxes early in Mid December 1989 that were due on Jan 15th 1990 because we were going to be out of town when it was due. Came home to find an IRS notice for failure to file a return for the income this was on Feb 1st 1990 the return of course wasn't due until April 15th. 1990

Some clerk was tasked with checking the names and social security numbers on investment income reported matched. I at the time was a trustee for multiple trusts for other family members. Reports had ????? Family Trust, Gertrude Muramoto TTEE on them and an ein number. Now trusts have ein numbers don't even have the same number of digits as a social security number. The clerk looked up my social security number and transferred all the taxable income reported over to my personal social security number. I had of course paid the taxes on trust returns with the correct ein numbers.
Found out when they came to put a seizer notice on the door of my house.

Do I trust any answer from the clerks at the IRS NO..... Always ask for a supervisor and go as high as you can get.
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  #14  
Old 02-03-2014, 04:51 PM
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I ignored..................................
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  #15  
Old 02-03-2014, 05:00 PM
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So what we really need is someone who has used the bond deduction and been audited.
That should tell the story, but I would bet you a $1 no one has been audited that could speak to this.
  #16  
Old 02-03-2014, 05:14 PM
gustavo gustavo is offline
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Quote:
Originally Posted by dewilson58 View Post
It's a question of: How aggressive you are.
Aggression implies fraud, fraud will get you jail time, ignorance of the law will just cost you money.
  #17  
Old 02-03-2014, 06:20 PM
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gomoho gomoho is offline
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Originally Posted by gustavo View Post
Aggression implies fraud, fraud will get you jail time, ignorance of the law will just cost you money.
Only if you're caught and then you could say "I misspoke" or "I'm going to rehab" and all will be well.
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