Bond Assessment

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  #1  
Old 02-19-2015, 10:52 AM
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Default Bond Assessment

I know I should ask my tax professional but I am curious if anyone knows, if paying off your bond, is a tax deductible item.

I thought I ask, as he is in N.Y. and Florida, has it's own rules. I'm trying to avoid his having to research, this issue.
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Old 02-19-2015, 11:04 AM
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This may help, kiddo.

The Tax expert in our home is playing golf.

I am in charge of World Peace. (not doing well there)


http://www.talkofthevillages.com/for...ctible-103720/
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  #3  
Old 02-19-2015, 11:29 AM
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Bond payoff is not tax deductible. It is not a tax, but really is part of the purchase price of the house. No matter how the Villages sales agents try to spin it or dodge around it, the only thing it is related to a tax is that the annual bond pay down is "collected" along with your annual property tax bill, for an extra fee of course. In most states the cost of the infrastructure for a residential development is included in the "purchase price" and not "bonded out" as a separate item.
To my knowledge the interest paid on the bond is not tax deductible either, but someday someone may challenge that with IRS arguing that the "bond lien" is really a "second mortgage".
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Old 02-19-2015, 11:31 AM
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Quote:
Originally Posted by graciegirl View Post
This may help, kiddo.

The Tax expert in our home is playing golf.

I am in charge of World Peace. (not doing well there)


http://www.talkofthevillages.com/for...ctible-103720/
Oh GG I really wish you were in charge of world peace, then our world would not be violent and hate filled as it is today.

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  #5  
Old 02-19-2015, 11:46 AM
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No. No part of the bond payment is deductible.
If you take out a home equity loan to pay off your bond the interest you pay on the loan may be deductible.
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Old 02-19-2015, 12:04 PM
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I was told by a realtor at an open house in Spanish Springs that in SS you have one bond and when it is paid off it is gone but in Sumter you have a second bond on your Tax that never goes away. Is this true or was he just blowing smoke up my backside?
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Old 02-19-2015, 12:09 PM
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Sort of. Where I am in Sumter, there is an approximately $700/year line item on the annual tax bill for infrastructure (or something like that) maintenance that is due regardless of whether you have payed off your bond. I don't know if this exists in the other counties.

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Originally Posted by bobbym View Post
I was told by a realtor at an open house in Spanish Springs that in SS you have one bond and when it is paid off it is gone but in Sumter you have a second bond on your Tax that never goes away. Is this true or was he just blowing smoke up my backside?
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Old 02-19-2015, 03:06 PM
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Quote:
Originally Posted by bobbym View Post
I was told by a realtor at an open house in Spanish Springs that in SS you have one bond and when it is paid off it is gone but in Sumter you have a second bond on your Tax that never goes away. Is this true or was he just blowing smoke up my backside?
There is no second bond in Sumter County to my knowledge. Perhaps he is referring to the annual maintenance fee. This fee pays for the maintenance of the common areas. That includes but not limited to mowing, trimming shrubs and trees, flower beds, irrigation, weeding the aforementioned, and all things needed to be done to keep our community attractive. It should not be confused with the monthly amenity fee.

My personal opinion, it's a bargain.
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Old 02-19-2015, 04:39 PM
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If it were tax deductible what would it be deductible from. Florida has no state income tax.
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Old 02-19-2015, 05:15 PM
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Federal Income Tax. Doesn't matter because it is not a valid deduction.

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If it were tax deductible what would it be deductible from. Florida has no state income tax.
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Old 02-19-2015, 07:22 PM
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Quote:
Originally Posted by 2BNTV View Post
I know I should ask my tax professional but I am curious if anyone knows, if paying off your bond, is a tax deductible item.

I thought I ask, as he is in N.Y. and Florida, has it's own rules. I'm trying to avoid his having to research, this issue.
Easiest answer is a big fat NO.
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