[graciegirl]

Originally Posted by KeepingItReal

FROM ANOTHER THREAD ON SAME SUBJECT

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Join Date: Oct 2011

Posts: 53

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Your CDD bond payments and interest on the bond are not tax deductible. Your CDD bond payment is included on your property tax bill as a non ad valorem assessment and is not based on the value of your real property. Ad valorem taxes are based on the assessed value of real property and are deductible on schedule A of your tax return.

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WELL DONE RESEARCH, keepingitreal. Good information for all of us to remember.

[jimbo2012]

Yes, I've never met a lawyer that didn't lose in Court

50% do.

That is his opinion, it is not based on case law or it would have been cited, he didn't cite a case, he has in other posts about unrelated topics.

[KeepingItReal]

...

[Geewiz]

OK - who here has been audited and had to pony up additional taxes on bond interest with a penalty assessed? And...trust me..if no one raises his or her hand it ain't because folks aren't taking it as a deduction. Tax attorneys deal with 2 issues...is it absolutely "safe" and will it get you audited. In this case the answer is 1. No and 2. Probably not. Remember, TV has been called (rightly or wrongly) the STD capital of Fla. I don't think folks here are risk averse. Of course, we can make a big fuss and get a bunch of folks audited or we can let the sleeping dog stay asleep. It is probably iffy enough to not make it today's new IRS cause. Hell, we have political groups running ads and taking tax deductions for doing it...and we have tons of folks parking their money in Swiss accounts and it's not because their money has an affinity for good chocolate and cowbells. Ok - all together now...let's take a big collective sigh and relax.

[KeepingItReal]

.....

[Geewiz]

Originally Posted by KeepingItReal

Maybe I misunderstood but I thought we were trying to find out with certainity if it is legal according to existing tax laws to deduct bond and or bond interest. If we are only trying to decide if taking it as a deduction will trigger an audit then that would be another topic. I accept from the many times it has been discussed that it is not allowed. Just because no one has been audited definitely does not ensure they will not be and the IRS can go at it with a vengance if they suspect something was done intentionally.

You are absolutely right - it is not a sure thing - but, there is enough grey around the edges to not keep you up at night. I think the crux of the thread is "can I deduct it?" I asked the question a great deal myself...I think it is a close issue of law...it's possibly not OK...and given the reality of tons of folks running clear cut tax avoidance scams going plus the decimation of IRS auditors (kinda counter-intuitive for a country running a large debt) - it's not worth worrying about. Heck, for many folks in TV - we are talking about an interest deduction of less than $500/yr. And for those folks in the Premier homes...you probably have bigger red flags connected with your returns than the interest deduction.

[Schaumburger]

Originally Posted by gg

This agent is telling you wrong.....what else is he telling you about the homes you are looking at...change agents.

Oh I am a long time wannabee who won't be purchasing in TV for a while -- just wish I could. This was info. from an agent at an open house I attended -- not from an agent I am working with. I don't wish to mess with the IRS.

[keithwand]

Originally Posted by Geewiz

You are absolutely right - it is not a sure thing - but, there is enough grey around the edges to not keep you up at night. I think the crux of the thread is "can I deduct it?" I asked the question a great deal myself...I think it is a close issue of law...it's possibly not OK...and given the reality of tons of folks running clear cut tax avoidance scams going plus the decimation of IRS auditors (kinda counter-intuitive for a country running a large debt) - it's not worth worrying about. Heck, for many folks in TV - we are talking about an interest deduction of less than $500/yr. And for those folks in the Premier homes...you probably have bigger red flags connected with your returns than the interest deduction.

HUH?
Why would a premier home have bigger red flags than another home?
I wasn't aware the IRS checked square footage now.

[Geewiz]

Originally Posted by keithwand

HUH?
Why would a premier home have bigger red flags than another home?
I wasn't aware the IRS checked square footage now.

My point - trying to be funny and not making it - is that folks with more cash may have investments and because of the amount of money involved might accrue red flags. Remember - just large charity deductions - though totally legit - earn you points. But - again - I was just trying to put this in perspective...it costs the IRS more in admin costs to go after a couple hundred dollars in interest deductions than they would ever recover. In my old agency, we routinely waived overpayments to folks under a certain amount just for that reason.

Cheers!

[Bavarian]

Originally Posted by Geewiz

My point - trying to be funny and not making it - is that folks with more cash may have investments and because of the amount of money involved might accrue red flags. Remember - just large charity deductions - though totally legit - earn you points. But - again - I was just trying to put this in perspective...it costs the IRS more in admin costs to go after a couple hundred dollars in interest deductions than they would ever recover. In my old agency, we routinely waived overpayments to folks under a certain amount just for that reason.

Cheers!

This discussion thread MAY have been read by IRS, so they may now be more careful in checking returns from Villages ZIP codes. Don't give them ideas.

And BTW, no matter where your accounts are and where your dividends, interest, capital gains are earned, you must report them. I do not have Swiss account but keep up with financial investments. The other countries have done away with bank secrecy. The EU was upset with Switzerland and Luxembourg and now they must report all accounts.

Look at your 1040 now, very complicated and requires verifying any foreign accounts. I don't fool with IRS.

[kentucky blue]

Originally Posted by Bavarian

This discussion thread MAY have been read by IRS, so they may now be more careful in checking returns from Villages ZIP codes. Don't give them ideas.

And BTW, no matter where your accounts are and where your dividends, interest, capital gains are earned, you must report them. I do not have Swiss account but keep up with financial investments. The other countries have done away with bank secrecy. The EU was upset with Switzerland and Luxembourg and now they must report all accounts.

Look at your 1040 now, very complicated and requires verifying any foreign accounts. I don't fool with IRS.

Maybe the time has finally arrived for a flat tax rate.It would simplify the tax code and most of the IRS agents would receive early retirement.They could move to TV ,help stimulate our local economy,which would encourage growth and create jobs.Sounds like a plan to me,creation of jobs and encouraging growth,what a unique concept.