Tax Deductible???
 

Are payments made to pay off the bond tax deductible?

Re: Tax Deductible???
 

No, only the interest on the bond itself, same as home loan interest. I'm speaking of Federal, not sure about the state.

Re: Tax Deductible???
 

nope

Re: Tax Deductible???
 

WOW what a bumma.....

Re: Tax Deductible???
 

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!

Re: Tax Deductible???
 

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.

Re: Tax Deductible???
 

:agree: In one word

Re: Tax Deductible???
 

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