IRS Inquisition
 

Interesting...

http://www.orlandosentinel.com/commu...5008648.column

Re: IRS Inquisition
 

Peachie, This is interesting if a bit disconcerting. Would you post the link to the follow up article? Should spark some thoughtful responses from our TOTVers.

Re: IRS Inquisition
 

H-mmmmm

Re: IRS Inquisition
 

I've sent another, PM, JoJo. There should be another article from the Orlando Sentinel in a few days and I'll try to find that and post it also. Perhaps if someone in this crowd receives the OS online, they'll post the link for the followup article.

Re: IRS Inquisition
 

Peachie,

Ummm......very interesting. I'd like to see the follow up article. Thanks for posting.

Shirleevee

Re: IRS Inquisition
 

HHHmmmm....personally if the home owners don't mind then why should anyone else....just let us live in our bubble please!

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I hear you, Cassie, I love that bubble too. But carefully read the article which includes this:

If the IRS were to impose a different interpretation than in the past, bond buyers could end up having to fork over income tax on the interest from their investment, which they don't have to do now.

So who are these buyers? That isn't easy to discern. But administrators at the districts say some bonds are owned by Villages residents themselves

That could affect the size of bubble.... :dontknow:

Re: IRS Inquisition
 

But we PAY interest on the bond....who makes interest on theirs? Ours is almost paid in full....

Also why would it change the size of the bubble?? Bigger? Smaller?

Re: IRS Inquisition
 

Cassie, if we also need to pay the IRS interest we would have less income to purchase/maintain our homes.

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Peachie....this is going to get out of hand if that happens! The bond payment is on the TAX bill...this very confusing to me.....

Notice they said they will try to just make it go away quietly!

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Don't feel bad about the confusion, Cassie, :dontknow: .... even the IRS can't figure it out! ;D

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This "inquisition" should not affect current Villagers directly.

The bond on a new house... the developer builds out the streets, sidewalks, etc and pays for it by issuing bonds. These bonds are bought by investors. These bonds are attractive to investors because they are (now) considered municipal bonds and the interest paid to the investor is tax free. If the IRS rules that the interest is not exempt from Federal Tax then the bonds might not be as attractive to investors to purchase. This might have the ripple effect of increasing the interest rate on future bonds to attract investors. This would affect future new home purchasers and is completely unrelated to current homeowners and their annual bond payment on their property tax bill.

Recreation bonds.... when an area is completed, the developer gradually sells the amenities in that area to the central CDD district. The Central CDD purchases the facilities by issuing bonds. The bonds are paid off by residents via a portion (about 60%) of their amenity fees. Same scenario as above....if the interest is not federally tax exempt, then future bonds might carry a heftier interest rate to attract investors which could lead to higher amenity fees.

All speculation as to future impacts. But, thanks for the link Peachie...something to keep an eye on.

Re: IRS Inquisition
 

Villages 07, As usual a factual and helpful response. I've told several folks that you are an authoritative source of info.

Re: IRS Inquisition
 

07, you impress me more every day.

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Very well put Villages 07. :bigthumbsup:

I guess the only way this would affect people currently living in The Villages is if they had actually purchased these bonds as an investment. If the IRS determines that the interest is taxable, then the bonds will certainly go down in value and the investors would have to report the interest as taxable income. The article appears to indicate that some people currently living in TV owned some bonds but I would imagine it would be very few people.

Re: IRS Inquisition
 

This is great, finally and it took the IRS, to question the business practices of the developer. People, we are paying and paying and paying. No pyramid scheme on earth could not have done a better job of "robbing" us of our money. Would I have moved here if I had "read everthing about the government here, of course not. I would have lived outside the villages in a great big house for less money and pretended to be someones relative and would have all the benefits of living here.

Am I being negative about this Great Big Daddy developer , you bet. Nothing about fair business practices here. I love the Villages, moved here six years ago and believed what we were sold which is not what we have today. Oh well buyer beware.

Re: IRS Inquisition
 

Here we go again! :edit:

Re: IRS Inquisition
 

Never ends!! LOL!!! God Bless America!! and TV's....

Re: IRS Inquisition
 

Thanks for the post Peachie. Keep us informed. :bigthumbsup:

I know the Village commandment is "thou shalt not question the developer"! :(

Please know Ladykathleen that I appreciate your post and respect your right to post it. :agree:

Re: IRS Inquisition
 

Please know Village07 that I appreciate your post and respect your right to post it....Did you read that Alex?

Re: IRS Inquisition
 

Alex,

Questioning is one thing. Some peoples continued harping, criticism, ranting and raving and to me, illogical, seemingly mean spirited posts about the Morse family is another thing. Especially when that is the only topic I have read that some people seem to post an opinion on.

Makes me wonder if some people love the free art classes, enjoy riding around in their golf cart, like the well priced meals at the country clubs, participate in playing Bridge, Bingo, Bunko or Bocce? If some people breathe in the scent of the flowers blooming on the gorgeous foliage in the pristine landscaping beside every public throughfare and look down at the immaculate streets where there are no cigarette butts, chewing gum or scrap paper, if some people welcome the homes pole lights all coming on in unison or clap their hands to the music in the squares while watching the dancers. I suspect that some people don't enjoy the free golf and the free delightful interaction with thousands of their peers who don't look at their bulges, wrinkles, or cock an eyebrow at their creaking bones and graying hair.

It just seems that crabbing and complaining is the thing that some people find that "floats their boat."

Re: IRS Inquisition
 

Gracie :agree:

They are the people who will find something wrong with every thing or every person they encounter. I am sure we all know a few....They are every where - not just TV unfortunately

Re: IRS Inquisition
 

Thank you Alex.

Again I should not use a site (which for many people is little more than a "chat room " ) to attempt to alarm, however you are correct, I do have my right to post and as some are writing "crab, complain" if I so choose over and over. I love living here, still encourage people to move here though it seems now you don't need to live here to enjoy this place and its' amenities. Much has changed , not for the better and I for one and many others will be viligant so that we can continue to keep what we have left and possibility right some wrongs.

Re: IRS Inquisition
 

Kathleen, as I noted in an earlier post, you seem desperately unhappy here and I don't quite understand why you don't move just outside The Villages and come into the town square every night for your entertainment. Think how much better you would sleep at night and if you purchased that long ago, you will make money on that investment. It would be a win-win for you. This is not said maliciously, it's just that you need to live with a lighter heart and enjoy your life.

Alex, there is no such commandment about questioning a legitimate concern in regards to the developer. There is a commandment that I do follow, "Thou shalt not bear false witness against thy neighbor", and that is the Christian guideline by which I try to live and applies to slandering and libeling the developer. These articles are presented for the interest of Village residents so they can remain aware, as they are now.

Re: IRS Inquisition
 

:agree: Gracie....can't wait to meet you in person.

Re: IRS Inquisition
 

The posts on this thread seem to have gone way off topic. It started out with a news story about the IRS investigating the bond practices and questioning whether they are indeed 'tax-free municipal bonds.' Why 'inquisition,' though, just because the IRS is doing what the IRS does? But now the thread seems to have boiled down to bickering and 'personalities before principles.'

Villages07 is correct in explaining how municipal bonds work, followed by Niels' summary. We homeowners are not the bondholders (i.e., investors) that potentially can lose the plus of tax-exempt interest on the bonds; it is those individuals who invested in these bonds via the municipal bond market. And if the IRS does determine that the interest on these bonds should be taxable, then indeed the bonds will cost more because the interest rate will be less attractive.

It will then be up to the bond market to find its own level, which will not affect current homeowners. Future homeowners will have to decide for themselves how much they are willing to spend on their homes which, at least for all new construction, will include a more costly bond.

Nothing personal here; it's all business.

Re: IRS Inquisition
 

Thanks Sidney!! :agree: :agree: :agree: :agree:

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Hi, Sidney. I'm sending along a definition of inquisition, so you may understand why I included it in the title, "a period of intense questioning: a succession of detailed and relentless questions". The article indicates in the third paragraph many questions would be asked by the auditor. I simply posted this information so The Villagers not receiving the Orlando Sentinel would be completely aware of any issues pertaining to their communtity.

And thank you Villages 07 for the great imput!

Re: IRS Inquisition
 

Peachie, your posting of the link to the Orlando Sentinel was a great idea, and the info in the article is much appreciated and is something we homeowners ought to be aware of. There is much info about our community out there that does not appear in the Daily Sun, a paper which serves a whole different purpose. Hope you'll be able to post the follow-up as we won't be here to get the paper. 'Inquisition' just struck me as a pretty strong word, as in 'Spanish Inquisition' which was assuredly more than 'a succession of detailed and relentless questions'....

Re: IRS Inquisition
 

I didn't mean for it to come off that strong, Sidney. That title seemed simpler than, "the IRS is going to ask a whole lotta questions", lol. It was my first topic I posted and I thought I skwewed it up royally. Of course, it did take on a life of it's own, didn't it? :dontknow:

(And I will work on the followup to see if I can catch the link.)

Re: IRS Inquisition
 

Peachie,

Have you read and understood anything I have written ???????????? No I am not unhappy here! I am going to make sure with all "those many other supposedly unhappy people" that we protect our rights and happiness here. If reading my posts so distresses you don't read them.

Re: IRS Inquisition
 

Well YOU Sure have a lot of people fooled!

Re: IRS Inquisition
 

Per Kathleen, "Would I have moved here if I had "read everthing about the government here, of course not. I would have lived outside the villages in a great big house for less money and pretended to be someones relative and would have all the benefits of living here".

Kathleen, what part of your own sentence don't you understand? The angst seems to be yours ::).

Re: IRS Inquisition
 

Am I supposed to concern myself with what impression you have of me? I read these posts for information about the villages because "gossip" of which there is much and word of mouth and many, many eyes reading various publcations produces good information of concern to us residents, however when I read that I should move, oh really, is that a serious comment? That is not what this site if for though I believe this site has a "chat room" capability.
I don't live in front of this computer so this is enough for today.

Re: IRS Inquisition
 

I said I didn't understand why you stayed in The Villages and so the question was, "why do you stay" and for that you cannot provide an answer. Hmmmm, could it be that The Villages is really a wonderful place to live?

Re: IRS Inquisition
 

For those of you looking for the followup article on the IRS, check topic: Morseville Bondage. It provides the link and further discussion...

This is also the link:
http://www.orlandosentinel.com/commu...1600764.column

Re: IRS Inquisition
 

Oh it REALLY REALLY IS!!!

Re: IRS Inquisition
 

First, V7 thanks for the great read on the issue.

Yes, LK I do prefer my rose colored glasses view!