Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#1
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Is bond interest tax deductable?
2011 was our first full year at TV and it sees like someone along the way told us we are paying interest on our bond and that interest is tax deductable. Does anyone know if this is correct and, if so, how we would find that $ amount?
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#2
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It's not a tax, so IMHO, not deductible. If you got an equity loan on the home to pay off the bond, the interest may be deductible. Citizens mortgage reports the bond payment with the tax escrow as lump sum payout, so it appears to be all tax, but they report the breakdown to the IRS.
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........American by birth....Union by choice |
#3
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I thought that was what the big lawsuit from years ago was about. The builder charges interest on the bond, but you are not allowed to deduct it on your taxes. You can only deduct mortgage interest. Bond interest is not mortgage interest. Finance the bond into your mortgage and it's deductible. Just like an auto loan. You used to be able to deduct all interest, but not any more. If you take a home equity mortgage and buy a car, you can deduct the interest.
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Greg A pessimist is an optimist with experience. "In my many years I have come to a conclusion that one useless man is a shame, two is a law firm and three or more is a congress." - John Adams |
#4
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[QUOTE=getdul981;455570]I thought that was what the big lawsuit from years ago was about. The builder charges interest on the bond,
Not so. The builder does not get the interest on the bonds, the bond buyers do. The law suit was a different issue. |
#5
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My tax person has told me it is not Tax Deductible, but many people do and have not been caught. Only time will tell ! I will pay it off once I am sure I am staying here. It takes about 10 years of payments to equal the bond total.
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#6
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Stop by the finance office and request an amortization schedule for the bond. It will open your eyes. We were paying approximately 5.3% interest, plus admin cost for filing.
We paid it off. |
#7
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Go to districtgov.org and look for the tab " how do I" and find how do I pay off my bond, you can find bond information for your district and type of home including an amortization schedule for your bond.
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Riverside NJ, Moorestown NJ, Mt. Laurel NJ, Tuckerton NJ, Mount Laurel NJ. |
#8
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I think our bond is over 6%. We are paying it off this year. Our tax guy also said it was not deductible. Also, there is a steep administrative fee tacked onto the bond payment each year.
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Chicago, Lincoln Nebraska, Rochester NY, SE Ohio, Oklahoma, California, New Mexico and BUTTONWOOD |
#9
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Live in District8-CYV. Bond is $13190. Interest=5.75%. admin fee $61 ann. Effective cost with INT and ADMIN= 6.25%. My mortgage rate= 4.25%. Could save $200 annually by adding to the Mtge when purchased . or pay in cash with a guaranteed int rate of 6.25%. Better than most guaranteed returns. If fact I know of no other that high(guaranteed)
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#10
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Call Carol Thompson at 352-751-3905 and you want them to send you the amortazitation schedule for the special assessment Revenue Bonds for your particular unit number. Your payment will be broken out by Date due (for 30 years) Principal paid for each particular year as well as interest and an Administartion fee for that particular years payment. AS you pay each year, the amount of Principal goes up and the amount of interst paid goes down whereas the administration fee remains the same (approx 6% of payment)for the entire 30 years.
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#11
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mary ann Today's new friend become tomorrow's family Ohio - Cleveland, Lakewood, North Ridgeville, North Olmsted, Marblehead, Elyria; Florida - Village of Bonita (2010) |
Closed Thread |
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