[VApeople]

Originally Posted by GoRedSox!

We chose not to pay off our bond because the interest rate on the bond is lower than the current interest rates for savings.

Our case was the opposite.

We bought our new house in 2016 and the interest rate on our bond was 6%, which was much higher than our interest rate on our savings. Therefore we paid off our bond.

[Babubhat]

The newer the home, the more you save. Cash in your pocket, no future principal, interest or administrative fee. Every property can be looked up on village’s amortization site.

Treat it as a reduction of the purchase price. The realtor should be highlighting this in advertising

[petsetc]

Also a thought on Non-Ad Valorem assessments.....
I do believe you could make a strong case to deduct both the Fire Assessment and the Maintenance portions.

[Djean1981]

The bond payment is included on your annual county tax bill. For our house, it's about $1,400 a year. But, it's different for each house/area. The bond payment tables are available on the district website.

[Papa_lecki]

As you can see from the replies, the decision to pay it off is a personal decision, based on your financial situation and personal comfort of carrying the obligation.

The bond set up is brilliant, 1) you pay it once a year, 2) the amount is relatively reasonable, and 3) the debt is attached to the house, not the owner. BUT
The bond is a financial obligation; it carries interest and an administrative fee.

Given 2 similar homes, a bond balance is ONE item a buyer will consider at purchase (we all know no 2 homes are identical). Every buyer has a list of 3 or 4 non negotiable in a house they want to buy. A bond may/may not be important.

[retiredguy123]

Originally Posted by petsetc

Also a thought on Non-Ad Valorem assessments.....
I do believe you could make a strong case to deduct both the Fire Assessment and the Maintenance portions.

How about my lawn service, electric bill, water bill, cable TV, cell phone, homeowner's insurance, etc?

[BrianL99]

Originally Posted by Topspinmo

IMO Everybody tries cheats on taxes why they have so many exemptions. Why federal will never go to flat tax? Lawyers make rules so lawyers can get paid long with down steam associations like IRS, CPRs, tax negotiators services, and tax prepare services. IMO flat tax ONLY fair way, no deductions you make this you pay this, I don’t care have many kids you have, how many charities, or foundations you have. But, that will never happen cause
rich will never pay their share. Yes I can have opinion.

& in my opinion, it's not opinion, it's merely the facts.

That crazy guy from Texas 30 years ago, had it right. A Flat Tax allows us to do away with 90% of the IRS & Collection Costs, is a much fairer system and revenue neutral.

[BrianL99]

Originally Posted by pauld315

Bonds are meant to hide the true cost of a house from appraisers.

I'm always amazed at the number of otherwise reasonably savvy folks, who own homes in TV and don't understand the genesis or implications of the CDD Bonds ... & it has nothing to do with "appraisers".

[collie1228]

If you use price per square foot as a basis for comparing prices, then you had better include the bond balance in the price if you want to compare apples with apples. It's part of the price you pay.

[petsetc]

Originally Posted by retiredguy123

How about my lawn service, electric bill, water bill, cable TV, cell phone, homeowner's insurance, etc?

I see the difference as...if you don't pay those bills, they will discontinue service.

I would argue the the Fire Assessment is clearly deductible since it pays for a County provided service and in most other states is just rolled into the RE taxes. Also, if you don't pay it, the County can lien and foreclose to collect.

From a Turbotax forum;
Real property taxes can be deductible, even if not ad valorem, if they provide a general community benefit and not a property-specific or "local" benefit. For example, a $50 charge per house for community ambulance service is a deductible property tax, while $50 for streetlights (that is only charged on streets with street lights) is a property-specific benefit and is not deductible.

Revised - the Maintenance fee does not fit this definition.

[Bilyclub]

No bond is costing you less money. Having a bond is an extra thousand or two a year.

[BrianL99]

Originally Posted by petsetc

From a Turbotax forum;
Real property taxes can be deductible, even if not ad valorem, if they provide a general community benefit and not a property-specific or "local" benefit. For example, a $50 charge per house for community ambulance service is a deductible property tax, while $50 for streetlights (that is only charged on streets with street lights) is a property-specific benefit and is not deductible.

IMHO, the Maintenance fee also fits this definition.

As the maintenance fee also maintains golf courses, clubhouses and pools, I doubt the IRS would agree with you. That said, I might try it next year. I'll let you know the results if I get audited.

[charlieo1126@gmail.com]

Originally Posted by retiredguy123

True, but, in most cases, the buyer is not willing to pay the bond principal.

that is not not what happens ,like I said before, you may have someone bid subtracting the bond but you don’t accept it , most buyers who want your home will pay the price with the bond. The longest I lived in any of the 5 homes I sold in villages was about 4 years so I owed most of the bond . The last home I sold was about 2 1/2 years ago so the market has changed somewhat , I’mi in my first preowned home in villages now , the house had no bond , but it sold for the same price as comparable models ,so the sellers gained nothing by paying it off and I would have bought this home with a bond anyway

[petsetc]

Originally Posted by BrianL99

As the maintenance fee also maintains golf courses, clubhouses and pools, I doubt the IRS would agree with you. That said, I might try it next year. I'll let you know the results if I get audited.

I agree, not the maintenance fee but definitely the fire tax. I'm going to remove that part of my post.

On a lighter note, I know several people who just pick the whole bill as a deduction aand I suspect the aggregate numbers will still be outside the IRS thresholds.

[Altavia]

If you or you heirs decide to rent the house a later date, do you lose the opportunity to deduct that expense if you pay it off?

Or can you depreciate the bond cost for a rental property?