arroyoflyer
Newbie
Posts: 12
Registered: 11-23-2009
Location: Baja Sur
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Capital Gains Tax Changes?
Hello and thanks for the forum ...
Having gleaned this site utilising the 'search' function, it appears there has been some slight changes re visa requirements / eligibility (ability
to go from FM-T directly to FM-2 etc) over the last few years for ex-pats.
My question is whether anyone's aware of any 'capital gains tax' requirement / exemptions / eligibility changes over the last few years for ex-pats
??
(I appreciate this is somewhat of a moving target. I'm interested in La Paz municipality specifically. Bare land (no buliding) but land improvements
(fencing / clearing (lawfully ... environmentally) / utility connections)
Any insights? salud
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k-rico
Super Nomad
Posts: 2079
Registered: 7-10-2008
Location: Playas de Tijuana
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Interesting subject, hope to hear from others who have recently sold by transferring a fideicomiso. I found this:
http://www.bajainsider.com/baja-real-estate/capitalgainsmexi...
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Paulclark
Nomad
Posts: 359
Registered: 10-13-2008
Location: Castillo de Arena
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I have not heard of any changes in capital gains tax. It is a complicated formula involving purchase price, number of years of ownership, inflation
factor and improvements. Improvements are only deductible if the expense is backed up by official receipts (facturas) and/or a building permit.
There is no capital gains tax payable on your personal residence if you are Mexican or --- a legal resident who has taxable income and pays income tax
in Mexico. This is the criteria which has been used to calculate capital gains tax by a couple of notaries I have used in San Jose.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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What about the IETU tax? Doesn't this come into play upon selling a property in Baja? My understanding is that the seller has to pay the higher of
either the Cap Gains tax or the IETU tax.
The vexing thing about the IETU tax is that you cannot deduct costs related to the sold item that were incurred before January 01, 2008, including the
original cost of real estate purchased before January 01, 2008. If you bought your real estate before 1/1/09, then, if I am correct here, the IETU
can be like a 17.5% sales tax on the totality of the sales proceeds (minus any costs incurred after 1/1/09).
[Edited on 11-25-2009 by MitchMan]
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DianaT
Select Nomad
Posts: 10020
Registered: 12-17-2004
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Wish there was a simple and easy to understand rule and formula----has anyone sold very recently????
We have been told by one agent that we do not need actual receipts for all the costs of buying or selling, and since in our area no one hands out
official facturas, that simple hand written receipts will be enough. And there are no building permits to speak about.
Then there is the reappraisal and the inflation that seems to not be clear.
Our agent has told us that it really is up to the all powerful Notario---so when we do decide to sell, I guess we will find out.
Again, anyone sold recently in one of the rural areas?
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Paulclark
Nomad
Posts: 359
Registered: 10-13-2008
Location: Castillo de Arena
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The notary does have final say as he is liable for the tax if he does not calculate it correctly -- the best source for correct infromation is to talk
to a notary.
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arroyoflyer
Newbie
Posts: 12
Registered: 11-23-2009
Location: Baja Sur
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Appreciate the replies !
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