Bond/tax question
 

Is the bond tax deductible?

nope, but some would say that it is a part of the cost of the home and as such the interest would be deductible similar to your mortgage interest, as always check with your tax professional, especially on this one as it's very thin

The Bond is related to the acquisition of your home and it is secured by a lean on your home. That's a very strong argument to support the position that the interest is deductible as mortgage interest. MHO after over 45 years as a CPA.

There are several lengthy threads about the subject on this site

Pay the bond asap, especially if you don't plan in selling, remember the rule of 72-divide the interest you're paying into 72--that number equals the double of your base in years--

Neither the bond principal or interest payments are deductible because they are included on the non-ad valorem part of the tax bill. For taxes or interest to be deductible they need to be based on the value of the house (ad-valorem), such as a home mortgage. The bond money is used to build the common area infrastructure, and has no direct correlation with the actual value of your house. Therefore, it is not deductible.

How do you find out exactly what your bond balance is?

On the web, go to districtgov.org. Click on Residential Bond Assessment Information. Then, click on Bond Amortization Schedules. Then, enter the specific information about your house: county, district, unit, etc. Then you will get an exact amortization schedule for your property, which will be the same for many of your neighbors.

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Deductible until audit.

Quite a few homeowners here have paid off their bond by taking out a home equity loan. The interest on the home equity loan is tax deductible.

:1rtotfl:

The short answer is NO!!!

Problem here, considering the equity loan is not assignable to the new owner if the house is sold. Keeping the bond intact creates a virtual hot potato.

I bought a resale home. It had everything I wanted and did not have to add fans, gutters, landscaping, etc. Well established neighborhood, and no bond!

The owner was very motivated to sell so the price was very negotiable.

Buyers should consider resales by MLS agents as well as the new homes by Villages Realtors.

plus the fact that the closing procedure is much easier with no words such as "penalties", extra fees for timing issues and the greatest you can "Make an Offer".