BajaNomad

Sending cash back to the USA

tecatero - 2-23-2022 at 07:55 AM

Quick inquiry: we are selling our home in Baja Sur, money is being deposited in our US Dollar Mexican bank account. The house is 15 years old. Question is we want to wire the $250,000 back to the US. We are dual citizens, dual passport holders, capital gains taxes are paid at closing in Mexico.

Will we be taxed on this money in the USA ?


Sorry for being so uninformed, but our US accountant is not real clear on what will happen or % if we are taxed. Thank you again

mtgoat666 - 2-23-2022 at 08:03 AM

Quote: Originally posted by tecatero  
Quick inquiry: we are selling our home in Baja Sur, money is being deposited in our US Dollar Mexican bank account. The house is 15 years old. Question is we want to wire the $250,000 back to the US. We are dual citizens, dual passport holders, capital gains taxes are paid at closing in Mexico.

Will we be taxed on this money in the USA ?


Sorry for being so uninformed, but our US accountant is not real clear on what will happen or % if we are taxed. Thank you again


I think in this case you can take a foreign tax credit or deduction.
Ask a competent accountant (sounds like yours is not).

PaulW - 2-23-2022 at 09:20 AM

Get another tax guy. Look for a tax guy in Baja Sur that does these kind of transactions. Find one of these tax guys that are US IRS enrolled agents and deal with MX home selling on a regular basis.

Are you using a California bank, or address?

AKgringo - 2-23-2022 at 09:58 AM

If so, the Franchise Tax Board may come after a piece of it. I am having problems with them now for a 2019 property sale in Alaska.

gnukid - 2-23-2022 at 07:49 PM

Usually its best to have the money from the sale wired directly to your USA account with a note from the Notary RE primary home sale proceed, instead of having the sale transferred across multiple accounts.

You can not be taxed twice, if you are paying cap gains in Mexico, you are unlikely required to pay again on the sale.

If you do some research first you may not have to pay any tax at all, unless it's a income generating vacation home with recent declaration of income.

If you are Resident Permanente it helps quite a bit, if the bills are in your name it helps, many factors at play. You can do some research on manifestation, etc, many posts exist here if you search on nomad.



gnukid - 2-23-2022 at 08:20 PM

This thread may be helpful http://forums.bajanomad.com/viewthread.php?tid=96272#pid1216...

4x4abc - 2-23-2022 at 09:06 PM

good luck sending money to the US
just a few weeks back I wanted to do that
during a period of about 2 weeks the bank created a new problem every day
the money still hasn't been wired

US-Mexico? No problem
out of Mexico? Nightmare

I found an alternative way and will close my account

gnukid - 2-24-2022 at 09:20 AM

I had the notario wire directly to my use account, showing proof I livd in the house for a long period through evidence of bills in my name etc electronically as well as recent original and copy. The notario sent 100% of the sale proceed with no taxes withdrawn.

4x4abc - 2-24-2022 at 09:43 AM

Quote: Originally posted by lencho  
Quote: Originally posted by 4x4abc  
I found an alternative way and will close my account


Which bank? It's been a while, but I've done interbank transfers ($50K+) from Bancomer to a U.S. bank without any problem whatsoever.

Not that I recommend Bancomer in particular (they all suck), but it should be a routine transaction.


HSBC

BajaTed - 2-24-2022 at 09:59 AM

Per H&R Block:
When you sell property or real estate in the U.S. you need to report it and you may end up owing a capital gains tax. The same is true if sell overseas property. The U.S. is one of only a few countries that taxes you on worldwide income — and gains made from foreign property sales are considered foreign income.

That means it doesn’t matter if the real estate you sold is in Austin, Texas or Auckland, New Zealand — you still have an obligation to report the gains you made on the sale. What’s more, if the gains are not excluded, you’ll pay a short-term or long-term capital gains tax on it.

surabi - 2-24-2022 at 09:46 PM

Quote: Originally posted by gnukid  


You can not be taxed twice, if you are paying cap gains in Mexico, you are unlikely required to pay again on the sale.


Wrong. That's not what no double taxation means. It depends on the tax percentage you are required to pay in each country.

If you pay, for instance, 20% in Mexico, and it's 30% in the US, you can deduct the 20% you already paid in Mexico, leaving 10% to pay in the US, or Canada.

tecatero - 2-25-2022 at 08:13 AM

You can not be taxed twice, if you are paying cap gains in Mexico, you are unlikely required to pay again on the sale.




Wow, this would be ideal if it’s accurate,,,,thanks for all the info

SFandH - 7-10-2022 at 03:21 PM

Quote: Originally posted by surabi  


If you pay, for instance, 20% in Mexico, and it's 30% in the US, you can deduct the 20% you already paid in Mexico, leaving 10% to pay in the US, or Canada.


I've looked into the capital gains issue and that's what I understand to be correct, at least for the U.S., I don't know about Canadian rules.

But...................I'm no tax expert.

JDCanuck - 7-10-2022 at 07:36 PM

So far in Canada, not required to list our residence in Baja at all. No Cap Gains will be required in Canada when we sell.
Personal use property is excluded from needing to be declared even when valued over 100,000 as per TurboTax and Canadian Revenue:

"Here are some other examples of foreign property you can exclude:

Any property you own primarily for personal use, including your automobile, cottage, paintings and jewelry"



[Edited on 7-11-2022 by JDCanuck]