So, what are forms 3520 and 3520A? Are there tax liabilities involved with them?Bruce R Leech - 3-9-2005 at 08:47 AM
you can obtain all the forms on the IRS website. and yes there are tax liability's involved.
I suggest any one filing for the first time to consult a good Tax attorney.
Forms
Sharksbaja - 3-9-2005 at 11:59 AM
So, I take it all you American casa owners do file the above mentioned forms.....as soon as you find out about them!Right?Bruce R Leech - 3-9-2005 at 01:05 PM
Sharksbaja I relay don't think most Americans realize that they need to claim and pay taxes on . I have talked to many and It is always a surprise to
them.
Dose any one no what the Law regarding foreign investments is in Canada?
[Edited on 3-9-2005 by Bruce R Leech]
IRS
Price - 3-11-2005 at 04:24 AM
Set me straight - does this mean if we have a house in Baja - no house in US -we have to pay taxes to the US ? When we retire(this year) my husband
will be collecting SS & we know we have to file Bruce R Leech - 3-11-2005 at 07:50 AM
Quote:
Originally posted by Price
Set me straight - does this mean if we have a house in Baja - no house in US -we have to pay taxes to the US ? When we retire(this year) my husband
will be collecting SS & we know we have to file
No price it doesn't mean you will need to pay taxes , that will depend on your financial status.
what it dose mean is if you are a US citizen your house in Mexico is considered a foreign investment. you are required by law to report any foreign
investment to the IRS. there is a form for this that you file every year with your taxes.you probably wont need to pay taxes until you sale your
house, and only for the amount of gain if any. if you rent a house this is not a problem.
if you have any interest in a Mexican business or cooperation this proses gets considerably moor complex.
as long as you are a American citizen you have tax responsibility's. the only way you can legally avoid this responsibility is to become a Mexican
citizen and renounce your US citizenship.
from what I understand the Mexican banks that Hold trust deeds for Americans are now required to share this info with the IRS.
the penalty's for failure to report and file are big.
I would check with a good tax attorney to See how this applys to you.synch - 3-13-2005 at 03:21 PM
It works both ways.
If you declare the property only to have a loss (by Mexican Goevernment soverign domain or just plain stolen, damaged, or devalued by someone like a
developer) then you can also claim that as a loss on your US taxesBruce R Leech - 3-13-2005 at 08:34 PM
