measomsan
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capital gains
So bought my Casa when the peso was @ 12ish now we are 20ish
That said I am permanent res but not citizen. If one is a citizen of Mx do you still pay Cap Gain ?
or do you just pay less than non citizen?
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Udo
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Depends...
Was the sale paperwork listed in USD or Mexican Peso?
Udo
Youth is wasted on the young!
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measomsan
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It was in US.....
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mjs
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The US is the only country in the world that collects taxes from its citizens no matter where they live or earn.
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gnukid
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A PR who can show more than 6 months or consecutive bills in their name may not pay capital gains, the decision is up to the notorio público who
handles the sale transaction. Consult.
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Udo
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The only way you need to pay capital gains is if your US dollar sale was for more than your US dollar paid price.
That will be determined by Mexico's Hacienda.
Udo
Youth is wasted on the young!
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ztrab
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Unfortunately you are going to get a lot of misinformation on this subject, in part due to the differences in the black letter law of Mexico and the
enforcement by the Hacienda. You also have to recognize your US tax liability as a US citizen.
The US tax issue is easy to sort out. Capitals gains, wherever earned by US Citizens is income. In my experience, a large number of US citizens ignore
their US taxlibility for Mexican profits and have not been caught because there is not a good mechanism for The IRS to track these transactions.
Failure to report this income means there is no statute of limitations on the unreported income. There are tax credits for foreign taxes paid and
narrow exceptions for income as opposed to capital gains for out of country residents. If you want to be informed, buy hour of a knowledgeable tax
accountant or lawyer as to your specific fact situation and potential US tax liability. Then you can make an informed choice.
As for Mexican capital gains, that (and not US tax liability) is theoretically the responsibility of the Notario. The Mexican laws are very specific
and it is a Napoleonic judicial system. In practice, many Notarios will work with a Mexican accountant who has connections with the administration in
power at the time of the transaction to "avoid" the the imposition of the substantial Mexican Capital Gains tax on foreign residents in Mexico. You
need a knowledgeable Notario with a solid reputation who knows how to navigate the system, all of which has a cost.
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bajaguy
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I know Hacienda has been mentioned, but are Mexican capital gains taxes paid to the municipality, the state or to the federal government??
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pacsur
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In response to dollars vs pesos, your Notario will convert dollars to pesos based on the govt rate recorded for the days of transactions, the current
and past historical info rates are available on the SAT website.
On another note about dollars vs pesos, the local Prosan store in Cabo was shut down the other day for listing some prices in dollars.
Prosan has been here a long time, it's like a restaurant supply plus lots of other stuff, they used to offer the best exchange rate using dollars for
many years.
Searchable Mexico peso govt rates-
http://www.banxico.org.mx/portal-mercado-cambiario/foreign-e...
[Edited on 2-10-2017 by pacsur]
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David K
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On the subject of pesos, never has it been a better time to travel in Baja for inexpensive food and lodging... at 20 pesos to the dollar, getting
pesos before crossing the border. However, dollars accepted everywhere, and the exchange rates offered at most Pemex stations ranged from 19 to 20.1.
I think I saw 18.6 somewhere?
Most meals, at the unfancy places were about 100 pesos ($5). Fish tacos were 20 pesos ($1) at China's in L.A. Bay and shrimp tacos were 25 pesos
($1.25).
A shrimp omelette with bacon, coffee, and fresh squeezed juice was 95 pesos ($4.75) at Poncho Villa's in Mulegé (thanks to Willy Airstream for that
recommendation).
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bajaguy
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It is easier for the locals to deal in Pesos.
Quote: Originally posted by David K  | On the subject of pesos, never has it been a better time to travel in Baja for inexpensive food and lodging... at 20 pesos to the dollar, getting
pesos before crossing the border. However, dollars accepted everywhere, and the exchange rates offered at most Pemex stations ranged from 19 to 20.1.
I think I saw 18.6 somewhere?
Most meals, at the unfancy places were about 100 pesos ($5). Fish tacos were 20 pesos ($1) at China's in L.A. Bay and shrimp tacos were 25 pesos
($1.25).
A shrimp omelette with bacon, coffee, and fresh squeezed juice was 95 pesos ($4.75) at Poncho Villa's in Mulegé (thanks to Willy Airstream for that
recommendation). |
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David K
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It's easier for the tourists, too! Other than the time to get them.
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BajaNomad
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Thread Moved
2-10-2017 at 03:10 PM |
Alan
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As David K stated it is a great time to use pesos for purchases. I've been down for the last couple of months and this is the first trip in quite a
while where I have noticed prices have not increased in restaurants etc to reflect the falling pesos.
I have no idea of the Capital Gain Tax liability for Permanent Residents but I believe everyone else will be surprised to learn that even if they were
quoted a purchase price on a property in dollars, on the actual deed or fidi it is identified in pesos. Just as the actual contract must be written
in spanish. With the fall in the peso my neighbor has learned that even though he is selling at a substantial loss he will still be responsible for
capital gains because he purchased when the peso was 10/1 and now that it is 20/1 as far a Mx is concerned he has doubled his money.
In Memory of E-57
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ncampion
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| Quote: Originally posted by gnukid | | A PR who can show more than 6 months or consecutive bills in their name may not pay capital gains, the decision is up to the notorio p�blico who
handles the sale transaction. Consult. |
We have heard this as well and that presents a problem for us. We live in an off-grid house, so no electric bills, no water bills. What other kind
of bills are acceptable? Internet? Security monitoring? Propane?
Living Large in Loreto. Off-grid and happy.
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Santiago
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| Quote: Originally posted by ncampion |
We have heard this as well and that presents a problem for us. We live in an off-grid house, so no electric bills, no water bills. What other kind
of bills are acceptable? Internet? Security monitoring? Propane? |
I have often wondered about this as well.
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gnukid
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It's up to the discretion of the Notario, if they think thy can they money out of you they will. If you can demonstrate you are residents through SAT
or other mechanism they can accept it. There is no hard a fast rule for every case of RP.
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