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Reeljob
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Location: Durango, CO
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Register Fideicomiso with IRS
Do some, all, or a few of you file the forms with the IRS re: foriegn property?
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dtbushpilot
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Yes.
"Life is tough".....It's even tougher if you're stupid.....
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bajagrouper
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No, but you have to file for a foreign trust=Fideicomiso
and a bank account with more than $10,000 USD.........
I hear the whales song
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john68
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Stand by.
We may soon get a definitive answer from the IRS as to whether or not a fideicomiso is subject to section 6048 of the Internal Revenue Code.
Amy Jetel, a tax lawyer with Morgan Adler Buxton Jetel in Austin, Texas, filed a ruling request with the IRS a few weeks ago. The IRS usually
responds within six months or so and its ruling will be published.
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dtbushpilot
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the forms must be filed by March 15 not April 15 like your income tax return...fyi....dt
"Life is tough".....It's even tougher if you're stupid.....
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SDRonni
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Yes, 3520 and 3520-A
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oxxo
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| Quote: | Originally posted by Reeljob
Do some, all, or a few of you file the forms with the IRS re: foriegn property? |
Yes, I do. Although there is dispute over whether it is required or not. it is prudent to file the form so that if it is determined that it is
required, you are protected from penalties and interest. It is a simple one page form that you can fill out yourself. It takes all of 10 minutes to
fill it out. My recommendation is to do it.
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SDRonni
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oxxo: which form do you file? The 3520 is about four pages and the 3520-A is two, I think......I had a CPA do it the first time, last year, and
since we don't ever rent it out, I just pretty much copied it for this year.
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elfbrewery
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What is the real benefit to registerng fideicomiso with IRS? Will the IRS want capital gains taxes on the selling of this property?
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dtbushpilot
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The real benefit is not being fined $10,000 for not doing it. Yes, of course the IRS will want their pound of flesh, they are nice enough to consider
the amount of MX capital gains that you pay to offset any US taxes you would have to pay......dt
"Life is tough".....It's even tougher if you're stupid.....
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oxxo
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| Quote: | Originally posted by SDRonni
oxxo: which form do you file? The 3520 is about four pages and the 3520-A is two, I think......I had a CPA do it the first time, last year, and
since we don't ever rent it out, I just pretty much copied it for this year. |
You are right, it is a two page form. My CPA filled it out the first year and I haved filled it out since. The information is essentially the same
from year to year.
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oxxo
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| Quote: | Originally posted by elfbrewery
What is the real benefit to registerng fideicomiso with IRS? Will the IRS want capital gains taxes on the selling of this property?
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Yes, the IRS wants you to pay capital gains tax when you sell in Mexico. However, they credit you with whatever capital gains tax you pay first in
Mexico. The current capital gains tax in the US is 15% while in Mexico the capital gains tax is about 30% depending on a number of factors.
So you likely wont owe capital gains tax in the US. They also want you to pay income tax on any rental of the property, again offset by any rental
income tax you pay to Mexico.
Filing with the IRS protects you from a potential $10K penalty. If you dont sell your property or rent it, there is likely no tax implication
from year to year by filing the form.
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captkw
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internal rapeing system (IRS)
YA,go ahead and bend over for the IRS,,LOL
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SFandH
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The following link mentions a new form, Form 8938.
Foreign Account Tax Compliance Act (FATCA)
It appears that the IRS wants this in addition to the 3520 and 3520-A. See Parts II and IV of Form 8938.
Looks like it will take about 5 to 10 minutes to complete - simple form.
[Edited on 2-27-2012 by SFandH]
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captkw
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| Quote: | Originally posted by captkw
YA,go ahead and bend over for the IRS,,LOL |
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SFandH
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| Quote: | Originally posted by captkw
| Quote: | Originally posted by captkw
YA,go ahead and bend over for the IRS,,LOL |
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Well, when you think about all the money the Government dishes out when you're retired, Social Security and Medicare, it's probably best to play it
straight with the revenue collectors. Who would complain if the gov decided to deny benefits to people that don't comply? Afterall, they are short of
cash these days.
Plus, it's about being a good citizen, and all that rot.
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captkw
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BLAALHH
sheep have been known to follow each other over cliff's
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oxxo
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| Quote: | Originally posted by captkw
YA,go ahead and bend over for the IRS,,LOL |
Well, then don't file the forms, it is your call. 
[Edited on 2-27-2012 by oxxo]
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captkw
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LAND OF THE FEE
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durrelllrobert
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| Quote: | Originally posted by captkw
sheep have been known to follow each other over cliff's |
..while the IRS watches!
Bob Durrell
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