[graciegirl]

Originally Posted by retiredguy123

Not true. The interest portion of your bond payment is not deductible. It is a non-ad valorem payment, not based on the specific value of your house, not the same as mortgage interest, and it is not deductible. It is also why the county provides a separate accounting on your tax bill for ad valorem and non-ad valorem payments. The bond interest is included in the non-ad valorem section of the tax bill. This is the IRS and the TurboTax interpretation of the Federal tax laws. But, you can deduct anything you want as long as you don't get audited.

Smart guy.

Indeed!

[dewilson58]

Originally Posted by retiredguy123

Not true. The interest portion of your bond payment is not deductible. It is a non-ad valorem payment, not based on the specific value of your house, not the same as mortgage interest, and it is not deductible. It is also why the county provides a separate accounting on your tax bill for ad valorem and non-ad valorem payments. The bond interest is included in the non-ad valorem section of the tax bill. This is the IRS and the TurboTax interpretation of the Federal tax laws. But, you can deduct anything you want as long as you don't get audited.

But it was the IRS that thought TV's bonds were taxable.

[Viperguy]

OK.so. We own our house and just got the tax bill with the bond added on to the tax. Does anyone know what the amortization period is on the bond? 10 yr, 15 yr 20? Our house is 6 yrs old. THX

[dewilson58]

Originally Posted by cgilcreast

OK.so. We own our house and just got the tax bill with the bond added on to the tax. Does anyone know what the amortization period is on the bond? 10 yr, 15 yr 20? Our house is 6 yrs old. THX

Here are the schedules:

Residential Bond Assessment Information

[kstew43]

Originally Posted by cgilcreast

OK.so. We own our house and just got the tax bill with the bond added on to the tax. Does anyone know what the amortization period is on the bond? 10 yr, 15 yr 20? Our house is 6 yrs old. THX

30 years on most homes.....

[CWGUY]

Originally Posted by cgilcreast

OK.so. We own our house and just got the tax bill with the bond added on to the tax. Does anyone know what the amortization period is on the bond? 10 yr, 15 yr 20? Our house is 6 yrs old. THX

Bond Amortization Schedules


Look on your I.D. Card to find your "Unit Number" Tax Bill will also have it.

I think they are all 30 years in Sanibel and close to 7% interest.... YOU DID KNOW THAT WHEN YOU PURCHASED? RIGHT?

If you own in a Villa Area (least expensive) you owe over a $1000 a year for the next 26 years.

[Villageswimmer]

Originally Posted by CWGUY

Bond Amortization Schedules


Look on your I.D. Card to find your "Unit Number" Tax Bill will also have it.

I think they are all 30 years in Sanibel and close to 7% interest.... YOU DID KNOW THAT WHEN YOU PURCHASED? RIGHT?

If you own in a Villa Area (least expensive) you owe over a $1000 a year for the next 26 years.

This was glossed over by our sales agent. We did the research ourselves before buying.

I don't think the gloss over was malicious--I don't think most agents understand the whole bond
concept.

Educate yourself before buying and know what that bond really costs! And, no, no Portion of it is legally deductible interest! It would cost less on many levels if it were simply added to the home price.

[TOTV Newbie]

Thx for the input. We will probably just pay it off once our existing home closes.

[VillagerNut]

Originally Posted by TOTV Newbie

Thx for the input. We will probably just pay it off once our existing home closes.

It is not suggested that you pay the bond off. The reason is if you decide you need to sell you have lost that money because a house with a paid off Bond does not sell for a higher price. The paid off Bond helps a house sell faster. To find out what interest rate you are paying you can contact the district office or get on districtgov.org and look it up. The bond are either 20 or 30 years. The 20 year bonds are north of 466 off of Morse. The rest of the homes are 30 year bonds. But it is up to you if you pay it off or not. Just realize if you sell you will not get any of it back in a higher price. Also you cannot pay the bond off now until January 2. You have up to the middle of July before they cut off the pay off of bonds for the year.

[Boilerman]

What is the average bond value and annual payments for a $300k home?

[Kelsie52]

Originally Posted by Boilerman

What is the average bond value and annual payments for a $300k home?

Hard to tell it is according to where the home is located not the price

example--you could have a court yard villa that sells for 375 thousand (golf course view)...and a another in the same development that sells for 210 --the bond will be the same ...in this example the bond is 12,000----about 950 per year

The bond is determined by the infrastructure dollars spent by the developer in a certain area divided by the number of homes in that area.

[birdiebill]

Using the amortization table for District 10, Unit 193, the bond payment is a little over $1700 per year for 30 years. For 2017 that breaks out at $334.98 for principal, $1267.66 for interest and $109.58 for administration cost. Just like a mortgage, the interest paid way exceeds the principal in the first nearly 20 years of the bond payments.

Over the thirty years a person would pay $22,534.28 for principal, $25,520.36 for interest, and $3,285.79 for administration cost for a total of $51,340.52.

Those are the numbers to consider whether to pay off the bond taking into consideration the interest is not tax deductible. If a person wants to deduct the interest, it might be better to take out a home equity loan and pay it off over time if the house is a "forever" home. A paid off bond in a new area will not be recouped if a person sells the house in the first few years.

[RickeyD]

Originally Posted by Boilerman

What is the average bond value and annual payments for a $300k home?

That depends when the house was built and the size of the lot.

[Challenger]

Originally Posted by VillagerNut

It is not suggested that you pay the bond off. The reason is if you decide you need to sell you have lost that money because a house with a paid off Bond does not sell for a higher price. The paid off Bond helps a house sell faster. To find out what interest rate you are paying you can contact the district office or get on districtgov.org and look it up. The bond are either 20 or 30 years. The 20 year bonds are north of 466 off of Morse. The rest of the homes are 30 year bonds. But it is up to you if you pay it off or not. Just realize if you sell you will not get any of it back in a higher price. Also you cannot pay the bond off now until January 2. You have up to the middle of July before they cut off the pay off of bonds for the year.

If the statement that an identical home with a remaining bond balance would sell for the same price as one without a similar lien is correct, TV would be unique in the world of real estate valuations and sales. To assume the existing lien(bond) would mean that you were ,in fact, paying a higher price- not debatable. Can anyone show statistical proof (not opinion) that such an anomaly exists?

[Bogie Shooter]

Originally Posted by RickeyD

That depends when the house was built and the size of the lot.

Neither applies.

How does the District arrive at the amount? Does everyone pay the same amount?
The Bond Debt Assessment was set at the time the bond used to build the infrastructure was issued. The formula for calculating each lot�s proportionate share starts with the total cost of the bond (including interest) issued to pay for the infrastructure. That cost is divided equally among each assessable acre in the �phase� of the District for which the bond was issued. That gives you a cost per acre. The cost per acre is then multiplied by the number of acres in the unit in which you live. That gives you the obligation for the unit as a whole. The unit total cost is then divided by the number of lots or parcels in the unit, and that computation gives you the amount of the assessment levied against each property. Therefore, each lot within a unit pays the same amount. Amortization schedules for each unit are located on the Districts' website; Village Community Development Districts under the Finance Department link.