bledito - 6-8-2017 at 08:02 AM
last year when doin my taxes I mentioned I have land in Mexico. they said it need to be reported to the IRS if it exceeded 70000 in value .Well this
year we are finally building on that land and the value obvioisly will exceed 70000 usa. first is it required to declare this land building to the
irs? and if so what are the repercusions for doing so?
BajaBlanca - 6-8-2017 at 01:04 PM
I highly recommend you talk to an attorney who deals with issues like property owned abroad. Who wants to be led the wrong way by accident?
karenintx - 6-9-2017 at 07:02 AM
Bledito...which IRS form is your tax advisor talking about and where did they get the $70k amount?
I am not a CPA or a lawyer but as a property owner in BCS this post is interesting to me.
In 2012 the IRS issued a "Private Letter Ruling" stating Mexican Fideicomiso are not a trust but will be referred to as a "MLT...Mexican Land Title".
So we stopped filing our "Form 3520" in 2013.
https://www.irs.gov/pub/irs-wd/1245003.pdf
https://www.google.com/search?q=irs++PLR+201245003&ie=ut...
IRS "FATCA and FBAR"
https://www.irs.gov/businesses/corporations/summary-of-fatca...
https://www.treasury.gov/resource-center/tax-policy/treaties...
https://www.irs.gov/businesses/small-businesses-self-employe...
https://www.irs.gov/uac/newsroom/taxpayers-with-foreign-asse...
IRS "Form 8938"
https://www.irs.gov/pub/irs-pdf/i8938.pdf
https://www.irs.gov/businesses/corporations/basic-questions-... see question #2 under "Cash or foreign currency, real estate, precious metals,
art and collectibles.
We have a plane and simple Fideicomiso for our condo and we use a Charles Schwab ATM to get pesos. So it is our understanding by not having a bank/
financial accounts (in Mexico) we are not required by any IRS law to file anything. If anyone thinks different I am interested in their opinion(s).