1. Are there income taxes in Mexico on a retirement annuity earned in the USA?
2. For Social Security income?
I retired March 1st. I'm fed up with the way the "Socialist State of California" is ever increasing their taxes on the few of us who work (worked in
my case) or generate other types of income. Therefore, I'm exploring my options to cash out of California including selling my house and take the max
tax free deduction allowed by law. Also by not having to pay California State income tax I'll save over $15,000/year not to mention saving from not
having to pay an approx 9% sales tax. I'm looking into two options at this time. I live in San Diego.
1. Renting a house/condo in Rosarito Beach overlooking the ocean and making it my permanent home. That way I'm close to USA for my Kaiser family
plan medical insurance.
2. Renting or buying a condo around Pensacola, FL (no state income tax). Prices are still rock bottom there. I just returned from a month vacation in
that area to look around.
I'm a golfing and fishing fanatic and need these fixes daily.
Thanks for the replies,
DennisDave - 6-1-2011 at 01:18 PM
Quote:
Originally posted by Lobsterman
1. Are there income taxes in Mexico on a retirement annuity earned in the USA?
2. For Social Security income?
No & No.
But you will still have to pay any applicable U.S. taxes... regardless of where you live.Pescador - 6-1-2011 at 01:36 PM
In fact, they have now passed a law that even if you cash out everything, put it in a Swiss Bank Account, and move to Timbuktu, and denounce your
citizenship, you are still responsible for taxes for 10 years.Lobsterman - 6-1-2011 at 03:16 PM
Yes, California property taxes and high cost of housing is also another major expense. I'm not trying to get out of paying federal taxes on my income.
I just do not want to pay California's state & property taxes. The money I save will pay for a waterview rental either in baja or Florida. My
preference is baja; my wife's is Florida. We'll see who wins.
Thanks for the replies.
Dennismtgoat666 - 6-1-2011 at 03:40 PM
Quote:
Originally posted by Lobsterman
Yes, California property taxes and high cost of housing is also another major expense. I'm not trying to get out of paying federal taxes on my income.
I just do not want to pay California's state & property taxes. The money I save will pay for a waterview rental either in baja or Florida. My
preference is baja; my wife's is Florida. We'll see who wins.
Thanks for the replies.
Dennis
FL vs CA? I guess you like flat, hot, humid and buggy, eh?
taxes are small price to pay for paradise!O.G. - 6-1-2011 at 04:16 PM
Quote:
Originally posted by Pescador
In fact, they have now passed a law that even if you cash out everything, put it in a Swiss Bank Account, and move to Timbuktu, and denounce your
citizenship, you are still responsible for taxes for 10 years.
Ahhh......... it gets even worse. As of Jan 1, 2013, according to H.R. 2847, title V offset provisions; If you wire transfer funds out of the U.S.
legally, 30% of said funds will be withheld;
even if the funds were AFTER TAX MONIES! How does that grab you???BigWooo - 6-1-2011 at 06:13 PM
Quote:
Originally posted by O.G.[/i
Ahhh......... it gets even worse. As of Jan 1, 2013, according to H.R. 2847, title V offset provisions; If you wire transfer funds out of the U.S.
legally, 30% of said funds will be withheld;
even if the funds were AFTER TAX MONIES! How does that grab you???
That's only for countries that don't have tax information sharing agreements with the IRS., for instance Panama. Mexico has tax agreements with the
U.S. so this law "should not" affect transfers to Mexico. Unfortunately the banks are indemnified from any liability for improper withholdings, so if
your bank "forgets" that Mexico has tax agreements with the U.S.....
