IRS investigation
 

My wife and I are "potentially" on the verge of buying property in TV and were wondering what the general thought was about the recent news on the IRS tax free bond issue? Is there trouble ahead? Do most people think the impact to homeowners is minimal? I would love to get some input from current residents and am surprised to see nothing here already.

Check this thread.

https://www.talkofthevillages.com/fo...illages-79362/

Trouble ahead? When the IRS rears its ugly head I would say that’s trouble but for who? The developer the home owner the bond holder the CDD. One thing I know for sure is the homeowner has not the foggiest idea of the impact on him/me. I hope to get an indication of the direction the trouble is blowing June 18 at the POA meeting. I would think that now that the ruling has come down a penalty would not be far behind, without one a negotiated settlement can not be arrived at.

That’s just my personal opinion.

My GUESS is that when new bonds are sold they will have a higher interest rate so the new homeowner will pay more. My guess would also be that for current homeowners there would be no change. However if litigation with the CDD happened the home owners could see their fees go up as they have to pay the expenses of the CDD.

Since nobody knows the outcome, nobody knows what, if any, impact there will be on homeowners. That is why you have seen nothing here already. However, the 2009 POA Bulletin article, referenced in the other thread on this subject, explains the potential impact. Read the article if you want to understand what this is all about.

At this point, about all we can do is wait, try to stay informed about developments, try to understand what is going on, and then, if the outcome prejudices, or is about to prejudice, homeowners, take (probably through the POA) whatever legal action is appropriate under the circumstances.

Unless you are a tax attorney, bond seller, or accountant specializing in taxes, you should gather as much material as necessary and have a trusted person in one of those fields look over it.

You can gather some of the material from this forum or google IRS vs The Villages and get over one million links. Do the due diligence now so that you're not sorry later.

It sounds like you are suggesting this bond decision has something to do with the bond folks pay with their home purchase. The bonds on home purchases and the CDD bonds have nothing to do with each other.

Didn't your Vilages sales person disclose this to you when you were dscussing puchasing in The Villages? They should have. Has impact on the value of your home or potential home.

Disclose?
Our guy said what landfill on 466A?
There's no landfill or I'd tell you.

This has been discussed for years in other threads and nobody really knows the outcome.

But we do know one thing for certain. We don't live forever, and most people we've met here said the only thing they should have done differently was to come here 10 years sooner (or more).

I'd buy a moderately priced home in TV, under $200,000, which is a low-risk purchase, and live my life while I have my good health and spouse with me to enjoy what we worked and saved for for the last 40 years.

Or I would rent a nice place on a long-term, annual lease.

CPA's, tax attorneys, and bond sellers who have never heard of TV, or who prefer their million-dollar places in Naples as our CPA and lawyer friends do, are not knowledgeable enough to advise on the value of living in TV.

Any professional advisor can gather enough material to read all the facts about the IRS investigation into The Villages and interpret them for their client. Would anybody invest $200,000 without a financial advisor? Why would someone not do their due diligence and get all the advice they can before buying?

investment noun
Definition of INVESTMENT
: the outlay of money usually for income or profit

Yes. A home is not an "investment" to many of us because we don't expect to have income or profit from it. It is a place to live comfortably, affordably, safely, and enjoyably.

Comfortably, safely and enjoyably are not quantifiable in terms of dollars and cents.

Affordability is a dollars and cents figure, and I know we and most residents here could afford $3,540 per resident if, in a worst-case scenario, the 100,000 residents had to pay every dollar of the $354 million said to be tax due on the commercial district's bonds.

And residents having to pay ALL of that possible tax due is a pretty far-fetched scenario, considering the developer, CDD, bond sellers and bond holders involved and all their lawyers involved.

The quality of life and quality of our home, and the friendship, love and support, in good times and in bad, that we have with our neighbors and friends in TV.....is incalculable.

This issue is a huge financial black hole. The last thing I am going to do is drink my Kool Aid and put my head back in the sand.

Food for thought.
Who did not pay $354 million said to be tax due on the commercial district's bonds? Who, not the residents, not the developer, not the CDD, it was the bond holder, people that buy stocks and bonds.

Who sold tax free bonds and should not have done so, the CDD.

At one time the CDD was told they had to pay a fine and never sell tax free bonds again and they turned down the settlement.

I do not think it unreasonable to think the bond holders well have to pay the taxes on the bonds.

I do think it unreasonable to think the bond holders well POed and file a class action law suit against the CDD. The CDD has some amount of money in reserve and a limit on how much amenity fees can increase. I feel the fee limit is my firewall.

Maybe the CDD could redeem and reissue bonds paying a higher interest rate seeing they are not tax free.