manifest construction cost

Volcano....it may vary depending on WHERE your construction's located. I know that in La Paz area, you're supposed to renew the building permit if the work isn't substantially completed & isn't closed out a year after issuance. I know there's a fine for not closing out or renewing/extending a building permit, but I don't know how stiff the fine is or how soon they impose a fine after the 1-year mark.

Since it sounds like you're running on Mexican time for your anticipated completion schedule, it might be wise to go talk with Catastro. If your place is enclosed (walls, roof, doors & windows) but needs finish detail, they consider that livable & you could close it out & manifest current value today....then after you completely finish, go back & have it re-valued based on the additional work done. This can be a somewhat spendy process, but it's legal & there's an existing process in place to do this. Cost is based on the person who does the re-valuation's fee (restricted by an approved list of people who are authorized to do this), plus Catastro fees, which are a percentage of the $$ of increased value.

Where you are might apply different rules & can definitely apply different fines/penalties.

How much did you bet on me, Santiago?

Quote:

How much did you bet on me, Santiago?

Volcano, since I'm in La Paz, I've never dealt with any other office of Catastro nor Seguro Social. If I were you, I'd go into Catastro in San Jose & ask....throw yourself at their mercy! Explain about your contractor, etc. Take your contract, the builders presupuesto, any & all documentation that you have which can prove that you were acting in good faith & that the builder is the bad guy here!

The Seguro Social problem is one I'm intimately familiar with....UNFORTUNATELY! My first builder did not pay SS, plus he manifested my finished construction at a value of approximately $15,000 pesos! This is how I found out about the re-valuation process! But I also had a contract that clearly stated that he charged me SS & he was responsible for paying SS. When I sold the casa after 5 years, I went to SS to make sure everything was in order so the buyer wouldn't be caught by any expected problems. Good thing I did, because that's the point in time I discovered how badly the builder had screwed me. He'd avoided paying taxes to Hacienda by registering the finished construction value at $15,000 pesos. But he forgot he'd given me signed receipts for each & every cash payment he received from me. I had a stack of signed receipts that totaled over $176K USD. I only dealt with the SS office, but when they realized the extent of his actions (or lack thereof!) they asked if I had a problem with them taking copies of my contract, his original presupuesto, the signed receipts for cash & the Termination de Obra paperwork to pass onto Hacienda. They gave me a letter stating that I was not liable for the SS payments they were going after him. Which was fine with me!! I know they put a lien on his business & hauled his butt to Mexico City to face the music. I gave them irrefutable proof. This is the ONLY time I've gone into ANY governmental agency & THEY bit the bullet on coping costs rather than making me pay to have copies made!


If I couldn't have done the re-valuation, I'd have been looking at capital gains taxes of roughly $75K (equivalent USD). The $275K it sold for minus the recorded value of $1,500 would have left me paying 27% on the $273.5K difference! It cost me about $5K to bring it up to value. Money well spent!

But keep in mind that I was dealing the agencies in La Paz. I know nothing about how the San Jose people are to work with. Technically, by law, YOU the property owner is liable for SS; the builder is not, but the fact that you have a signed contract with him accepting responsibility is in your favor. Also, if you go to them upfront & volunteer the information & explain the situation, I think they'd be more willing to work with you. If you just try to lay low & hope to fly under their radar, they'd be less likely to resolve things in your favor.

I'm hoping that someone who has worked with the San Jose people will jump in here with some factual information.

Mike, you can work on your own casa, you just can't work on someone else's property....legally!

manifest construction

manifest construction cost