Interesting point. If you are right, then the payoff is not deductible but since it is paid off, the mello roos tax would not be there on the tax bill, so I don’t think I could even write off the mello roos that were supposed to be due that year.
I was looking at the mello roos payoff as paying taxes early. More like paying the both 1st and 2nd tax installment in December so that both payments can be deducted that tax year. In which case the mello roos payoff would be deductible.
