| Pages:
1
2
3 |
The Sculpin
Nomad
Posts: 401
Registered: 9-3-2002
Location: Back in the Saddle
Member Is Offline
Mood: Riding into the Sunset, looking for a sunrise.
|
|
I'm not sure you're right about this 3520A filing. I believe the congressional intenet of this law was to keep track of US citizens creating foreign
trusts in order to hide assets offshore. This was a marvelous opportunity for "tax management" before KPMG got caught with their pants down. By the
way, unless you had at least 5M in discretionary assets, you couldn't play. I don't think the fideo falls into this group.
I think you need to get another opinion. This tax guy you mention is really creating problems if he's having you file a US form on behalf of a foriegn
entity as a protective measure. Go to IRS.gov and pull the form down with the instructions. You couldn't even fill it out for a fideo if you wanted
to!
As far as explaining the sudden increase in your bank account on sale of a foriegn property, remember, your a US citizen, and as such, you are taxed
on your worldwide income, regardless of the source. So when you sell your Mexican holdings, you will pay tax to the Mexicans on the gain, and then you
will turn around and do the verey same thing in the US. Now, in the US, you get a credit against US tax for the taxes you paid in Mexico, as long as
the tax rate is equal to or higher than the US rate. You do that, the the IRS isn't going to care where your gain came from, you paid your tax!
|
|
|
latitude26n
Banned
Posts: 124
Registered: 8-7-2004
Member Is Offline
|
|
Thanks Sculpin 
Check your u2u's also.
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
FRUSTRATION! What was Mexico thinking Believe me...from our experience in Costa Rica. Once the USA sticks their nose in a business, it can ruin you.
Even when it was a Costa Rican company! Rumor alone can put you under. Is there no escaping the IRS.....I just want to be left alone Ha! Ha! Who
said that If it's true that the banks will be sharing information there will be no
escape.
|
|
|
Price
Nomad
Posts: 168
Registered: 8-29-2003
Location: Las Vegas/San Felipe
Member Is Offline
|
|
This whole tax thing is mind boggling !!!!! When we move to Baja our only income will be SS - anyone know about how much $$$$$$ we will be out ? The
irs is the lowest of the low !!!!!!! They take our money and finance other countries - Don't you think it would make more sense to take care of the
USA ? Oh yeah - we are talking about the irs !!!!!!!
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
The IRS can't even get their act together in the USA, I find it hard to believe they can get facts and keep them straight with Mexico as well????
|
|
|
Dave
Elite Nomad
Posts: 6005
Registered: 11-5-2002
Member Is Offline
|
|
| Quote: | Originally posted by 2frogs
The IRS can't even get their act together in the USA, I find it hard to believe they can get facts and keep them straight with Mexico as well????
|
Obviously, you have never been audited.
Most Mexican banks are parts of multi-national corporations. The largest, Banamex, is owned by Citicorp.
You can run but you can't hide
|
|
|
Sharksbaja
Elite Nomad
Posts: 5814
Registered: 9-7-2004
Location: Newport, Mulege B.C.S.
Member Is Offline
|
|
| Quote: | Originally posted by Dave
| Quote: | Originally posted by 2frogs
The IRS can't even get their act together in the USA, I find it hard to believe they can get facts and keep them straight with Mexico as well????
|
Obviously, you have never been audited.
Most Mexican banks are parts of multi-national corporations. The largest, Banamex, is owned by Citicorp.
You can run but you can't hide |
Gee Dave, you sure know how to instill fright.
Got me thinkin'
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
Oh, believe me we've been through the mill with IRS rules while living in Costa Rica. It took yearrrrrs to get that mess straightened out. Dang it,
you are right...you can run, but you can't hide
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
the only option you have is to renounce your US citizenship.
Bruce R Leech
Ensenada
 |
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
Oh, not doing that although after getting a letter from the IRS yesterday made us think about it. See, you can't even speak the nasty letters That was
spooky! Wish us luck!
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
good luck 2frogs keep us posted maybe we all can learn something
Bruce R Leech
Ensenada
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
 Thanks for the encouragement. I'll just keeping thinking they forgot to give us
that huge refund: I hope we don't end up wishing we'd stayed in Costa Rica
|
|
|
The Sculpin
Nomad
Posts: 401
Registered: 9-3-2002
Location: Back in the Saddle
Member Is Offline
Mood: Riding into the Sunset, looking for a sunrise.
|
|
Nice try Bruce, but renouncing your citizenship doesn't work. If the IRS can show that you renounced for evading US tax, they can go after you for any
income earned 10 years after you renounce. And as 2frogs probably knows, they don't need to prove much. I realize it's an oversimplification, but
because the US tax regime is "voluntary", it makes the audit process seem like it's governed by the Napoleonic code!!!
That being said, people at the IRS are just like people in any other organization, overworked, undertrained, and they have to produce. I have found
that friendliness, patience, brevity, and "keeping it simple" can make the process much quicker and more bearable. Right in the middle of an audit
interview, I realized that we had made a HUGE mistake that would have cost us tons. Trying to control the sweat on my brow, I answered the questions,
kept the agent focused on the information he wanted, and calmly moved on to other things. My mistake?...........we inadvertantly forgot to translate
expenses reported in pesos to dollars!!! Thankfully, that year is now closed....whew!
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
Yep, you never want to renounce as you never know when you might want to run home to daddy  Ha! Ha! We'll see what our tax attorney has to say first Nice try at sucking up to the IRS people He! He! I guess they could be reading
this:
Seriously,
It's just when you think you have everything settled from bad tax information while living in CR, it may be coming up to hit us in the back of the
head again. UGH! 
|
|
|
The Sculpin
Nomad
Posts: 401
Registered: 9-3-2002
Location: Back in the Saddle
Member Is Offline
Mood: Riding into the Sunset, looking for a sunrise.
|
|
2frogs, I ain't sucking up. I just find that the nice way is the best way to start out. That way, when you go to the supervisor, or even to appeals,
you can show you negotiated in good faith. Also, you get more flys with honey, or something like that.....Anyway, I'm a firm believer in having 2
attorneys on my payroll. I have a labrador, who makes a good living and gets me 95% of what I want. Then I have a doberman, who I pay very, very well,
and he gets me the other 12%!!
Good luck!
|
|
|
Bruce R Leech
Elite Nomad
Posts: 6796
Registered: 9-20-2004
Location: Ensenada formerly Mulege
Member Is Offline
Mood: A lot cooler than Mulege
|
|
| Quote: | Originally posted by The Sculpin
Nice try Bruce, but renouncing your citizenship doesn't work. If the IRS can show that you renounced for evading US tax, they can go after you for any
income earned 10 years after you renounce. And as 2frogs probably knows, they don't need to prove much. I realize it's an oversimplification, but
because the US tax regime is "voluntary", it makes the audit process seem like it's governed by the Napoleonic code!!!
That being said, people at the IRS are just like people in any other organization, overworked, undertrained, and they have to produce. I have found
that friendliness, patience, brevity, and "keeping it simple" can make the process much quicker and more bearable. Right in the middle of an audit
interview, I realized that we had made a HUGE mistake that would have cost us tons. Trying to control the sweat on my brow, I answered the questions,
kept the agent focused on the information he wanted, and calmly moved on to other things. My mistake?...........we inadvertantly forgot to translate
expenses reported in pesos to dollars!!! Thankfully, that year is now closed....whew! |
wow I did not know that. thanks for the info
Bruce R Leech
Ensenada
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
Just teasin' ya! I can't imagine NOT being like honey to the IRS. But, I'll let our tax lawyer do the talking Ha! Ha! I just got out of court from
being a victum of hit and run a little over 3 yrs. ago. Took that long to catch her and go to court. I want nothing more to do with
legal/gove./state etc., etc. stuff if I can help it. I was drug through court to look like the bad guy when all I was doing was sitting at a stop
like and got rear ended. Still shaking my head about that lossNope, I have no
faith left in our system of any shape or form. But, that's just me.
We had a doberman that loved to patrol all night long and then in Costa Rica we had a German Shephard that was my shadow and protected me from
everything. She hated snakes and could smell them a mile off and would cause a fuss to let me know to watch out. I bet she could smell out the IRS
too.  :spingrin h for heaven sakes I'm just foolin'
|
|
|
The Sculpin
Nomad
Posts: 401
Registered: 9-3-2002
Location: Back in the Saddle
Member Is Offline
Mood: Riding into the Sunset, looking for a sunrise.
|
|
....no worries, 2frogs......panties now unbunched.... 
|
|
|
2frogs
Junior Nomad
Posts: 59
Registered: 7-27-2005
Member Is Offline
Mood: curious
|
|
Oh good Sculpin....walk with ease
|
|
|
Dave
Elite Nomad
Posts: 6005
Registered: 11-5-2002
Member Is Offline
|
|
| Quote: | Originally posted by Bruce R Leech
the only option you have is to renounce your US citizenship.
|
Renouncing to escape taxation ain't legal and just plain stoopid. But if you've got lots of dough and want to keep it there are other options. Fer
instance:
Become a Canadian citizen. There is zero tax for non-resident Canadians... anywhere. Several other countries offer the same benefits and there are
many others that don't tax capital gains from non-resident corporations.
But you really don't need to jump through hoops just to save a few dollars. If you are a legal resident for at least two years (and can prove it*),
Mexico doesn't tax capital gains from the sale of a home. Also, a corporate transfer of less than 25% asset value, need not be reported.
If you do your homework and structure your purchase wisely you can avoid most taxation.
*(Must have an FM and have registered an RFC# with Hacienda.)
|
|
|
| Pages:
1
2
3 |
![[*]](images/xmbforum/default_icon.gif){kind=icon}
