greta-inbaja
Nomad
Posts: 132
Registered: 7-19-2006
Location: Truckee, CA
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fidi question
Hello, I was just wondering.... Do many of you file your fidi with the irs?? It really bothers me that the us goverment want me to report my fidi
because it is a trust even though it does not generate any income. I realize it is so they can tax any capital gains if I was to sell my property. The
fine is 30% of the value of your property if you get caught not filing but it seems to be a pretty grey area. I know one accountant that says report
it and another that says ignore it. Nomad's opinions on this would be helpful.
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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Sounds like the Government regarding FM-3's between different offices.......no two requirements are the same. I would contact a good, reliable tax
advisor in the US and get an answer with some written justification/verification.
PS Where in Truckee????
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greta-inbaja
Nomad
Posts: 132
Registered: 7-19-2006
Location: Truckee, CA
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Between downtown and Glenshire, across from the truckee river. It's funny, our lot in Baja (just south of Frailes) is the same... on a hill with an
incredible view. but in a very simple neighborhood. The irs thing is frustrating, I guess most government is... and different accountants give
different answers, That is why I was just wondering what other nomad opinions are.
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
Member Is Offline
Mood: must be 5 O'clock somewhere in Baja
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had a friend that lived on Glenshire above the highway....cool views from the deck!!!
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greta-inbaja
Nomad
Posts: 132
Registered: 7-19-2006
Location: Truckee, CA
Member Is Offline
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Hey thats my view. We're on Riverview ct in olympic hts. lots of sun. same big open view , just like in Baja. be there next week!!!!Yaaaa
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capitolkat
Senior Nomad
Posts: 510
Registered: 3-9-2006
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Gret-- I used to have an office in Incline and regularly traveled through Truckee--
Take this for what it's worth-- I still use my long term accountant in CArson City and have used his firm ( now over 20 accountants) for more than 30
years and I gave him all the information on the fide and he did not include it in my return as he said it was not an income generating foreign trust -
thus not applicable- I did have to report some foreign investment income on mutual funds so he distinguished between the two.
I also rationalized that if there is a penalty it's on unreported income- from a fide that's $0 and ok I'll pay
Others will disagree but I follow my tax advisor's advice-- that's why I hire him.
Norm
Life is too short to drink bad wine
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SDRonni
Nomad
Posts: 481
Registered: 8-28-2006
Location: Serra Mesa/Rosarito
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If what you say is true about reporting the fidi to the IRS so that capital gains can be collected, what about the capital gains in Mexico at time of
sale? Will capital gains have to be paid there AND here? We are not "flipping" this property, and plan to spend several years there. What if your
time of residence is equally divided between US and Mexico? If our project is slated to be completed the end of this year, how soon should we begin
the fidi process?
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tripledigitken
Ultra Nomad
Posts: 4848
Registered: 9-27-2006
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| Quote: | Originally posted by SDRonni
If what you say is true about reporting the fidi to the IRS so that capital gains can be collected, what about the capital gains in Mexico at time of
sale? Will capital gains have to be paid there AND here? We are not "flipping" this property, and plan to spend several years there. What if your
time of residence is equally divided between US and Mexico? If our project is slated to be completed the end of this year, how soon should we begin
the fidi process? |
SDRonni,
I don't know if our fidecomiso was the exception or the rule, but our's took over 1 year to complete. I would think about getting it started just to
be safe. As it has been said here countless times, business transactions take longerrrrrrrr in Mexico.
Enjoy your new home!
Ken
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longlegsinlapaz
Super Nomad
Posts: 1685
Registered: 11-18-2005
Location: La Paz
Member Is Offline
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| Quote: | Originally posted by SDRonni
If what you say is true about reporting the fidi to the IRS so that capital gains can be collected, what about the capital gains in Mexico at time of
sale? Will capital gains have to be paid there AND here? We are not "flipping" this property, and plan to spend several years there. What if your
time of residence is equally divided between US and Mexico? If our project is slated to be completed the end of this year, how soon should we begin
the fidi process? |
SDRonni
I'm confused... ...how can you have an "our project" in the works if you haven't initiated purchase?? The fideicomiso is an integral part of the purchase
process for any non-Mexican purchasing land or property. Doesn't matter if you're only down a week a year...a fidi is not optional, it's mandatory!!
If you've signed any type of purchase paperwork, then I'd say your fidi process has begun. Ask your realtor or whoever you dealt with to make your
purchase, for current status.
Those of you with horror stories about year-long (or longer!) Fidi processes were obviously using a...Uhhhhhhhhh...less that "on top of things" person
or notario to process your paperwork...OR there was a major legal hurdle that had to be dealt with. I've gotten fidi's in as little as 30-days by
doing my own legwork.
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