Wednesday, September 20, 2017

KEY REASONS PEOPLE ARE RETIRING AND MOVING TO MEXICO FROM USA

Read the following article on the key reasons people are retiring or moving to Mexico to conduct their businesse while living a great lifestyle:  https://amarfriendsfoundation.wordpress.com/2016/07/04/key-reasons-why-people-are-relocating-to-mexico/

If you are thinking about such a move and wish to know more about the US tax consequences and the Mexican tax consequences, email us at ddnelson@gmail.com.  We have hundreds of clients in Mexico and spend six months a year there. We can give you the information you need.

Tuesday, September 5, 2017

Mexico Enforcing 6 Month Tourist Visas and Payment of Taxes By Gringos Living and Working in Mexico

Mexico is now getting tough on 6 month tourist visas and collecting taxes from gringos renting property in Mexico and earning money while living in Mexico.  See more at the link to the article on Yucalandia.

https://yucalandia.com/2017/09/02/inm-continues-to-increase-enforcement-of-restrictions-on-6-month-tourist-visas/

If you are renting property in Mexico and not paying taxes read the rules http://rentaltaxmexico.com/

If you are working and earning money in Mexico read the tax rules at: https://home.kpmg.com/xx/en/home/insights/2011/12/mexico-income-tax.html

If you need help with your US taxes while in Mexico contact us at ddnelson@gmail.com   Remember, you must still file a US tax return on your worldwide income even though you are paying taxes in Mexico. You do get exclusions and credits for taxes you already paid in Mexico. The statute of limitations never expires for the IRS to assess and collect taxes against your worldwide income if you fail to file a US tax return when you are required to file.

Saturday, July 15, 2017

Best Places to Retire Abroad...Mexico

Read about Chuck Bolotins current travels through Mexico with his wife and 2 dogs. Covers place@, experiences, travels and people other than taxes .  READ LINK BELOW

https://bestplacesintheworldtoretire.com/profile/2224-best-places-writer

Wednesday, July 12, 2017

Legal Aspects of Establishing a Business in Mexico

When you start a business in Mexico, you have decide whether you incorporate; what type of corporation or set up a branch of your US corporation.  If you are a permanent resident you can also set up a sole proprietorship. Below is a great article of the subject written in 2017 (so it is current).


If you wish to review the US tax and legal ramifications of doing business in Mexico with a US attorney who has hundred of clients in Mexico and has been assisting them for over 25 years you should email Don D. Nelson , Attorney at Law at ddnelson@gmail.com     The proper legal and tax guidance will save you not only money but untold problems.

Saturday, July 8, 2017

Everything You Wanted To Know about Buying, Selling, Owning, Renting and Occupying Real Property in Mexico from MLS Baja

The list of articles on this link includes almost everything you need to know about real estate law, taxes and ownership in Mexico . It is put together by the Baja Sur MLS and is a great compilation of knowledge from the experts.  SEE INDEX OF AVAILABLE ARTICLES HERE.

If you need help with US taxes in Mexico or rental taxes on Mexico properties, email us at ddnelson@gmail.com

Wednesday, February 1, 2017

CONSEQUENCES FOR AMERICANS AND CANADIANS FAILURE TO PAY TAXES ON RENTAL INCOME ON MEXICAN PROPERTY

What are the consequences of failing to report the rental income in Mexico? You will be liable for not being enrolled as a taxpayer which can cost you from 2,740. to 8,230 pesos when assessed by the SAT.   The penalty for not making rental tax declarations as required range from 1,100. pesos to 13,720. pesos per month in addition to interest for not paying on time and as required is 1.13% per month.  The amount of the penalty may depend upon whether or not this is your first violation.

Should you go back and pay in those taxes for past years when you failed to pay the rental income and VAT taxes?   If the Mexico tax authorities have not notified you are in violation of the tax code, you probably will not need to file back taxes (but there are no guarantees).   The important point is to begin paying now on your rental income from your Mexican properties and to be consistent in the future.
Learn more about the rules and how you can pay the Mexican taxes on your rental income and avoid these potentially devasting penalties at: www.rentaltaxmexico.com Remember also to pay your US taxes on that rental income. You can then claim a credit or deduction for the taxes you paid in Mexico on the same income so you are not double taxed. Have questions? Email us at ddnelson@gmail.com

Friday, January 27, 2017

Taxes You May Have to Pay as a Gringo in Mexico

There are some things about Mexican taxes you need to know if you are spending a lot of time anywhere in Mexico.

  • If you spend over 183 days in Mexico you are considered a permanent resident under Mexican tax law and are liable for their income taxes on your worldwide income. The enforcement of this rule is lax in many areas of Mexico, but since Mr. Trump is causing Mexico problems they may start to enforce it.  Their tax rate is much higher than the USA.
  • If you own property you rent out in Mexico even for a short time when you are no there, you owe VAT tax and income tax on your earnings. You are suppose to collect the VAT tax from the renter and pay income taxes on your rental income.  You can read more about the rules and how to pay these taxes if you do not have a Mexican tax ID number at: www.rentaltaxmexico.com
  • If you sell real property in Mexico, it is the notary who handles the transfer that determines the amount of tax you pay on your gain.  How this is calculated does seem to vary.  If you are a permanent resident and you meet the criteria, and the property you are selling is your personal residence, that gain on sale may be exempt from tax.  See you Mexican accountant to learn the exact rules since the specifics as reported seem to be difficult to determine.
  • If you have a commercial property or business, and wish to own or operate it in a Mexican Corporation, it is best to use the form of corporation that is a Sociedad de Responsibilidad Limitada (SRL), since you can make certain elections for US tax purposes that make it a flow through entity and thus you will not suffer double taxation on your US tax return and can claim tax credits for the income taxes it must pay in Mexico
  • Email us if you need help with your US tax planning for Mexico.  ddnelson@gmail.com