tecatero
Nomad
Posts: 205
Registered: 11-20-2013
Member Is Offline
|
|
Sending cash back to the USA
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
Select Nomad
Posts: 18388
Registered: 9-16-2006
Location: San Diego
Member Is Offline
Mood: Hot n spicy
|
|
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).
Woke!
“...ask not what your country can do for you – ask what you can do for your country.” “My fellow citizens of the world: ask not what America
will do for you, but what together we can do for the freedom of man.”
Prefered gender pronoun: the royal we
|
|
|
PaulW
Ultra Nomad
Posts: 3075
Registered: 5-21-2013
Member Is Offline
|
|
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.
|
|
|
AKgringo
Elite Nomad
Posts: 6029
Registered: 9-20-2014
Location: Anchorage, AK (no mas!)
Member Is Offline
Mood: Retireded
|
|
Are you using a California bank, or address?
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.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
|
|
|
gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
Member Is Offline
|
|
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
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
Member Is Offline
|
|
This thread may be helpful http://forums.bajanomad.com/viewthread.php?tid=96272#pid1216...
|
|
|
4x4abc
Ultra Nomad
Posts: 4290
Registered: 4-24-2009
Location: La Paz, BCS
Member Is Offline
Mood: happy - always
|
|
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
Harald Pietschmann
|
|
|
gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
Member Is Offline
|
|
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
Ultra Nomad
Posts: 4290
Registered: 4-24-2009
Location: La Paz, BCS
Member Is Offline
Mood: happy - always
|
|
| Quote: Originally posted by lencho |
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
Harald Pietschmann
|
|
|
BajaTed
Senior Nomad
Posts: 859
Registered: 5-2-2010
Location: Bajamar
Member Is Offline
|
|
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.
Es Todo Bueno
|
|
|
BajaNomad
|
Thread Moved
2-24-2022 at 11:54 AM |
surabi
Ultra Nomad
Posts: 4940
Registered: 5-6-2016
Member Is Offline
|
|
| 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
Nomad
Posts: 205
Registered: 11-20-2013
Member Is Offline
|
|
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
Elite Nomad
Posts: 7084
Registered: 8-5-2011
Member Is Offline
|
|
| 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
Super Nomad
Posts: 1670
Registered: 2-22-2020
Member Is Online
|
|
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]
|
|
|
![[*]](images/xmbforum/default_icon.gif){kind=icon}
