buying land in mexico -



Hi David
 
We are looking at  titled lot in Sayulita Mexico, and would like to  
have the documents looked at here.  Do you provide this service, or  
know of someone who does - the docs are in spanish of course.
 
We live in North Vancouver as well, and would be happy to meet with  
you in person if you are in town.
 
Best,
 
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david ingram replies:
 
I am sorry but that is not anything that I do.
 
I do have David Holroyd coming back from Guadalahara on Feb 1st (he is a Mexican Citizen who works here five months of the year) but he is a tax man - not a notario.
 
He does read AND SPEAK Spanish but you need a lawyer or notario.
 
I suggest that you ask the Mexican consulate for the name of a Vancouver lawyer who can look after you.
 
 
USE
 

Consulate General in Vancouver:

Consul General: María de Guadalupe Albert Llorente
Deputy Consul: Rodolfo Díaz
710-1177 West hastings Street
Vancouver BC V6E 2K3
Tel. (604) 684-3547, 684-1859 and 683-0674
Fax: (604) 684-2485
http://www.consulmexvan.com
E-mail: [email protected]

 
 
david ingram
 
 
 
The following is an older newsletter I wrote about what happens when you go to sell it.
 
 
 

US CANADA Sold house in Mexico - Is it taxable bt Mexico or the USA - DavidIngram expert income tax and immigration help and preparation of US CanadaMexico non-resident and cross border returns with rental dividend wagesself-employed and royalty foreign tax c

US / Canada Income Tax Help - CEN-TAPEDE centapede at lists.centa.com
Fri Oct 19 18:13:03 PDT 2007 


QUESTION: Hello David
I em an naturalised citizen  and I just sold my home in mexico .
My question is will my money be taxed when it enters the usa .
I plan to invest the money in a new house .      thanks 
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david ingram replies:

There are two problems.

One, unless the home qualified for/as a homestead in Mexico, the sale will be taxed in Mexico.

It used to be that the Mexican home was tax exempt if it was your principal residence for two years but that was cancelled in 2002.

What the Mexican Notary (Notarios) Decide is Critical  - the following was 'lifted' word for word from http://www.bajainsider.com/baja-business/taxes-mexico-real-estate.htm You may want to read the rest.

Under Mexican Income Tax Law, Notarios are jointly liable with the seller for all taxes due on the sale of real property in Mexico. If Hacienda (the equivalent to the Treasury Department in the US) decides the Notario did not calculate these taxes correctly, the Notario may be required by the tax authorities to make up the difference. Obviously, when they are doing dozens of transactions each year, very possibly involving millions of U.S. dollars, Notarios have to be very careful and will generally take a conservative approach.

The homestead tax exemption is still available to resident taxpayers in Mexico, and it is the Notario who decides who meets the requirements of tax residence. To make this determination, Notarios can base their decision on two different sets of laws: Mexican tax laws and Mexican immigration laws.



Since the Mexican Notary (Notario) is jointly responsible for the capital gains tax on real estate if it is due, the notary becomes the tax collector for the government.   As a consequence, foreigners are having a hard time  getting a tax free exemption.  San Miguel sales are a crap shoot with some people getting tax free status and others not.  each case is being dealt with on an individual basis.  In Mexico City, Foreigners are routinely granted tax free status.  In most other places foreigners are being taxed on the sale of their Mexican home.

1.     However, if you are a Mexican National and this is/was your family home, it should be tax free. 

2.   If you have a green card for the US or are a Permanent resident of Canada, you are taxable on your world income and the sale of a Mexican, Canadian, Australian or Ethiopian home/house is reportable and maybe taxable.  However, again, for the USA if it is the only home you own and you have physically occupied it for 24 out of the 60 months before sale, you are eligible for up to $250,000 per owner tax free on your US 1040.
 
If you are a Caandian, the sale of the home in Mexico would be tax free if you did not own another in Canada.

Another factor is to 'top up' the value of the home on the day you actually immigrated to the USA.
 
The top up of the value is automatic if you immigrate to Canada.

So the money is not taxable when you take it to the USA to buy your home there but the Mexican sale itself may be taxable in Mexico, Canada and / or the United states.

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It is very unlikely that blind or unexpected email to me will be answered.  I receive anywhere from 100 to 700  unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject and get answered first.  I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when I am out of town.  expert  US Canada Canadian American  Mexican Income Tax help
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Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." expert  US Canada Canadian American  Mexican Income Tax help.
David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico  family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
 
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada. expert  US Canada Canadian American  Mexican Income Tax help.
This is not intended to be definitive but in general I am quoting $900 to $2,900 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
 
$1,100 would be the same with one rental
 
$1,300 would be the same with one business no rental
 
$1,300 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
 
$1,600 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out

$1,700 would be for two people with income from two countries

$2,900 would be all of the above and you moved in and out of the country.
 
This is just a guideline for US / Canadian returns
 
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $175.00 up.
 
With a Rental for $375
 
A Business for $375 - Rental and business likely $500
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
 
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
 
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
 
8891 forms are generally $50.00 to $100.00 each.
 
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
 
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.

Catch - up returns for the US where we use the Canadian return as a guide will be $150 to $500.00 depending upon numbers of bank accounts, RRSP's, existence of rental houses, etc.

Just a guideline not etched in stone. 
 
This from "ask an income trusts tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax returns with multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income Tax Convention. expert  US Canada Canadian American  Mexican Income Tax help.

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