The Bond

Closed Thread
Thread Tools
  #1  
Old 09-03-2008, 08:20 PM
Peggy D Peggy D is offline
Veteran member
Join Date: Jul 2007
Posts: 656
Thanks: 0
Thanked 0 Times in 0 Posts
Default The Bond

I know, I know. We've been over this many times, but I have a ?? and can't find the answer on SEARCH.

If you don't pay off the bond at time of purchase, is the interest you pay tax deductable?

Is it better to pay off the bond?

Thanks
__________________
Wilmington, DE
Newark, DE
Ocean View, DE
Village of Hemmingway
  #2  
Old 09-03-2008, 08:26 PM
Dutchman Dutchman is offline
Member
Join Date: Jan 2008
Posts: 94
Thanks: 0
Thanked 11 Times in 6 Posts
Default Re: The Bond

NOT tax deductible. I don't think, and other posts in similar threads agree, it probably is not good to pay off the bond unless you just can't stand debt.
  #3  
Old 09-03-2008, 08:30 PM
drdodge drdodge is offline
Senior Member
Join Date: Oct 2007
Location: Springdale, Fairlawn villas
Posts: 460
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

look harder. there are many posts about bonds

drd
__________________
drd
  #4  
Old 09-03-2008, 08:40 PM
SteveFromNY's Avatar
SteveFromNY SteveFromNY is offline
Eternal Member
Join Date: Aug 2007
Posts: 1,197
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

Quote:
Originally Posted by Peggy D
I know, I know. We've been over this many times, but I have a ?? and can't find the answer on SEARCH.

If you don't pay off the bond at time of purchase, is the interest you pay tax deductable?

Is it better to pay off the bond?

Thanks
Pardon my ignorance, but if you pay it time of purchase, is there any interest? I thought it accrued as you continued making payments, just like a mortgage.
  #5  
Old 09-03-2008, 08:53 PM
Peggy D Peggy D is offline
Veteran member
Join Date: Jul 2007
Posts: 656
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

Sorry Steve. I didn't look right to me after I re-read it.

If we purchase a home and choose not to pay the bond in full at time of purchase.

The payments I pay on the bond will have interest (like a mortgage) right?

Is that interest tax deductable?

If no deductable interest, should I pay the bond off or not? What is the advantage in

not paying off the bond.
__________________
Wilmington, DE
Newark, DE
Ocean View, DE
Village of Hemmingway
  #6  
Old 09-03-2008, 09:23 PM
784caroline 784caroline is offline
Soaring Eagle member
Join Date: Jul 2007
Posts: 2,436
Thanks: 0
Thanked 6 Times in 6 Posts
Default Re: The Bond

People have found ways to make the bond payment tax deductible..ie home equity loans etc while others I know simply take it as a deduction and plan to use the check they write to the tax collector as proof of payment. Not what I suggest but simply what I know is happening in this confusion.

Benefits of not paying the Bond, In todays real estate market if by any chance you had to sell a house bought in 2006 or later, I think you would be hard pressed to get the price you paid for you house plus the closing costs and any improvements you paid..never mind the additional $15-30K bond price you paid. Having a bond paid provides you peace of mind, saves you some money as long as you stay in the house, and makes you house more marketable, but in all likelihood you will lose money if the bond is fully paid and you have to sell in todays market. If you plan to stay for 20-30 years pay it off!
  #7  
Old 09-03-2008, 10:02 PM
Sidney Lanier Sidney Lanier is offline
Gold member
Join Date: Sep 2007
Posts: 1,129
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

Quote:
Originally Posted by 784caroline
People have found ways to make the bond payment tax deductible..ie home equity loans.
To my knowledge, this is the only legal way to make bond payments tax deductible....

From another point of view, buying a resale affords the possible opportunity to get a house on which the bond has been paid, meaning that a buyer does better in the market as it exists now (though personally I think the market is stronger now in TV than it was, say, last year, IMHO). We bought our house from a couple who had paid the bond in full at the time they had originally bought the house newly constructed, and their having done so in truth did not figure into our negotiating a price for the house.
  #8  
Old 09-04-2008, 02:36 AM
zcaveman's Avatar
zcaveman zcaveman is offline
Eternal Member
Join Date: Jul 2007
Location: The Villages
Posts: 7,879
Thanks: 0
Thanked 5 Times in 5 Posts
Default Re: The Bond

If you pay off the bond and then sell the house, you can include the bond cost in the price of the house. While the house will be more expensive than others in the area, there is an incentive. The new buyer will have the bond cost included in the mortgage and will be able to get a legal tax deduction on the mortgage interest since the bond is no longer separate. I am sure that a Realtor would pitch the benefits of buying without a bond correctly.

When I paid my bond off, the person I gave the check to said to add the bond cost to the value of the house. But then it was 2001 and the bond was only $6000.
__________________
Jacksonville, Florida
Andover, New Jersey
The Villages

Second star to the right, then straight on 'til morning.
  #9  
Old 09-04-2008, 12:58 PM
drdodge drdodge is offline
Senior Member
Join Date: Oct 2007
Location: Springdale, Fairlawn villas
Posts: 460
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

IRS says bond payments are not deductable

drd
__________________
drd
  #10  
Old 09-04-2008, 05:11 PM
Peggy D Peggy D is offline
Veteran member
Join Date: Jul 2007
Posts: 656
Thanks: 0
Thanked 0 Times in 0 Posts
Default Re: The Bond

Thanks everyone.

Since we will be frogs when we move to TV, it might be best for us to pay the bond off.

I was just curious if there was any advantage in not doing so.
__________________
Wilmington, DE
Newark, DE
Ocean View, DE
Village of Hemmingway
  #11  
Old 09-04-2008, 10:58 PM
villages07's Avatar
villages07 villages07 is offline
Sage
Join Date: Mar 2007
Posts: 11,070
Thanks: 2
Thanked 24 Times in 17 Posts
Default Re: The Bond

Peggy,

One piece of advice seen on this board was maybe to wait a year or two after you get here to pay it off. If, for some reason, you sell your Villages home in the first couple of years, you probably won't recoup the amount you spent to payoff the bond. Once you are comfortable with the house, neighborhood, lifestyle, etc....then pay it off and be debt free.
__________________
Maryland (DC Suburbs) - first 51 years
The Villages - next 51 years
  #12  
Old 09-06-2008, 04:44 PM
Frangyomory's Avatar
Frangyomory Frangyomory is offline
Veteran member
Join Date: Jul 2007
Location: Tall Trees/Cherry Vale CYV
Posts: 546
Thanks: 0
Thanked 1 Time in 1 Post
Default Re: The Bond

We paid the bond off right away. It is like having a second mortgage with no benefits. If you ever decide to sell, great asset to have the bond paid off. Just mho.

How are you doing Peggy? My back is healing little at a time. Loved your card. I am still mostly home-bound but have been out to breakfast twice in last three weeks. Hope you and Nick are well.
__________________
Fran Gyomory
The Bronx, NY; Kailua, HI; Dale City, VA; Fredericksburg, VA; The Villages, FL
  #13  
Old 09-06-2008, 05:33 PM
tkret's Avatar
tkret tkret is offline
Gold member
Join Date: Oct 2007
Posts: 1,031
Thanks: 105
Thanked 14 Times in 4 Posts
Default Re: The Bond

Quote:
Originally Posted by Frangyomory

How are you doing Peggy? My back is healing little at a time. Loved your card. I am still mostly home-bound but have been out to breakfast twice in last three weeks. Hope you and Nick are well.
Frangyomory,

Take care of that aching back. You're a nice lady so I'll advise you not to use the ointment that Daphne used on Niles... check it out and smile
http://www.youtube.com/watch?v=FgXDDyDYma8
  #14  
Old 09-06-2008, 11:45 PM
Frangyomory's Avatar
Frangyomory Frangyomory is offline
Veteran member
Join Date: Jul 2007
Location: Tall Trees/Cherry Vale CYV
Posts: 546
Thanks: 0
Thanked 1 Time in 1 Post
Default Re: The Bond

I am guessing it wasn't Bengay she used!!!!!
__________________
Fran Gyomory
The Bronx, NY; Kailua, HI; Dale City, VA; Fredericksburg, VA; The Villages, FL
  #15  
Old 09-07-2008, 12:05 AM
tkret's Avatar
tkret tkret is offline
Gold member
Join Date: Oct 2007
Posts: 1,031
Thanks: 105
Thanked 14 Times in 4 Posts
Default Re: The Bond

Quote:
Originally Posted by Frangyomory
I am guessing it wasn't Bengay she used!!!!!
Frangyomory,
Good thing she only put it on his back! I'm sorry but I just couldn't resist that so slap me. :redface:
Closed Thread


You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 01:49 AM.