BajaNomad
Not logged in [Login - Register]

Go To Bottom
Printable Version  
Author: Subject: Captial Gains in Mexico???
CortezBlue
Super Nomad
****


Avatar


Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
Member Is Offline


[*] posted on 11-14-2006 at 09:33 AM
Captial Gains in Mexico???


Ok,
Can anyone tell me about selling a home in Mexico and how you handled Capital Gains?

It appears there are several ways to go about this. However, one solution looks like an FM3 and part time living allows you to sell you house with out capital gains.

Let me know
View user's profile Visit user's homepage
southerner
Newbie





Posts: 9
Registered: 10-5-2005
Member Is Offline


[*] posted on 11-14-2006 at 11:36 AM
Capital Gains


Give this thread a try:

http://forums.bajanomad.com/viewthread.php?tid=15892#pid1346...

This should cover most of your questions.
View user's profile
comitan
Ultra Nomad
*****


Avatar


Posts: 4177
Registered: 3-27-2004
Location: La Paz
Member Is Offline

Mood: mellow

[*] posted on 11-14-2006 at 11:40 AM


Or this one:

http://www.bajainsider.com/baja-business/taxes-mexico-real-e...



[Edited on 11-14-2006 by comitan]




Strive For The Ideal, But Deal With What\'s Real.

Every day is a new day, better than the day before.(from some song)

Lord, Keep your arm around my shoulder and your hand over my mouth.

“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
View user's profile
oxxo
Banned





Posts: 2347
Registered: 5-17-2006
Location: Wherever I am, I'm there
Member Is Offline

Mood: If I was feeling any better, I'd be twins!

[*] posted on 11-15-2006 at 06:45 AM


Mexico capital gains or U.S. capital gains?

My understanding is that you will have to pay capital gains taxes in either Mexico or the U.S regardless of your residency status in Mexico.

The Mexican capital gains tax is deducted by the notario and paid to the government and then you, the seller, are paid the difference. My understanding is that the Mexican capital gains tax is approximately 33% (35% less inflation) of your gain less any expenses (improvements, sales commissions, etc.). You MUST have official receipts (facturas) for expenses or they will not be allowed.

It is now quite difficult to get a Mexican tax exemption for capital gains. But if you should get the exemption, you are not off the hook in the U.S. The U.S. does not have a captial gains exemption for foreign owned property even if your Mexico property is your primary residence. This exemption only applies to U.S. owned property. If you pay Mexican capital gains, the U.S. tax code allows you to apply these monies toward your U.S. captial gain obligation. If the amount of Mexican captal gains is less than your U.S. obligation, you will owe the difference in the U.S. If you don't pay Mexican capital gains, then you will owe the total U.S. capital gains tax at the Federal and State rate of your state of residence.

I believe this information is correct, but I am not qualified to give legal advice. I advise that you seek appropriate legal counsel on this matter.
View user's profile

  Go To Top

 






All Content Copyright 1997- Q87 International; All Rights Reserved.
Powered by XMB; XMB Forum Software © 2001-2014 The XMB Group






"If it were lush and rich, one could understand the pull, but it is fierce and hostile and sullen. The stone mountains pile up to the sky and there is little fresh water. But we know we must go back if we live, and we don't know why." - Steinbeck, Log from the Sea of Cortez

 

"People don't care how much you know, until they know how much you care." - Theodore Roosevelt

 

"You can easily judge the character of others by how they treat those who they think can do nothing for them or to them." - Malcolm Forbes

 

"Let others lead small lives, but not you. Let others argue over small things, but not you. Let others cry over small hurts, but not you. Let others leave their future in someone else's hands, but not you." - Jim Rohn

 

"The best way to get the right answer on the internet is not to ask a question; it's to post the wrong answer." - Cunningham's Law







Thank you to Baja Bound Mexico Insurance Services for your long-term support of the BajaNomad.com Forums site.







Emergency Baja Contacts Include:

Desert Hawks; El Rosario-based ambulance transport; Emergency #: (616) 103-0262