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Wednesday, January 18, 2017

MEXICO WILL 'IMMEDIATELY' RESPOND TO ANY US BORDER TAX - MINISTER

Reuters Article of the day

By Michael O'Boyle and Frances Kerr

MEXICO CITY (Reuters) - Mexico must be ready to respond immediately with its own tax measures if the incoming administration of President-elect Donald Trump imposes a border tax, the economy minister said on Friday, warning such protectionism may trigger a global recession.
Trump, who takes office on Jan. 20, has promised a "major border tax" on companies that shift jobs outside the United States, and such a measure could hobble Mexico's exports to its top trading partner.
"It is clear we need to be prepared to immediately neutralize the impact of such a measure", Economy Minister Ildefonso Guajardo said in an interview on Mexican television.
"And it is very clear how - take a fiscal action that clearly neutralizes it", he said.
Trump has repeatedly attacked Mexico over trade, jobs and immigration since he first launched his run for the White House in 2015, driving the peso currency to historic lows and unnerving investors, especially in the auto sector.
Guajardo said Trump's proposed tax "was a problem for the entire world" and that it "would have a wave of impacts that could take us into a global recession".
Nonetheless, the minister said he expected foreign direct investment in Mexico this year to total around $25 billion, with investment in the energy and telecommunications sectors expected to more than make up for the loss of a planned $1.6 billion Ford Motor Co. factory that the company said this month it is cancelling. Trump had strongly criticized the plan, but Ford said its decision was not the result of pressure from Trump.
Guajardo also praised the government of Japan and Toyota Motor Corp for their "reasonable" response to Trump's threat to impose a significant border tax if the company does not stop making its Corolla model in Mexico for the U.S. market. Toyota said last week the automaker has no immediate plans to curb production in Mexico.
"Toyota has 10 plants in the United States... and employs more than 130,000 Americans. If I were Mr. Trump, I'd treat them with more respect", Guajardo said.
He added that he expects total foreign direct investment during the six-year term of President Enrique Pena Nieto, which ends in late 2018, to average $30 billion annually.
Guajardo has previously warned that U.S. corporate tax cuts proposed by Trump, as well as the border tax, could undermine foreign investment in Latin America's No. 2 economy.
Mexico slapped a tax on U.S. high fructose corn syrup in the early 2000s after the United States refused to allow free trade in Mexican sugar.

Friday, December 30, 2016

IMPORTANT US TAX DEADLINES AND INSTRUCTIONAL VIDEOS FOR US EXPATS IN MEXICO

All U.S. citizens and residents (green card holders) must report worldwide income on their federal income tax return. If you lived outside the U.S. on the regular due date of your tax return, the extended filing deadline for your 2016 tax return is Monday, June 15, 2017.  Similarly, the deadline to report interests in certain foreign financial accounts is the same as your tax return (with some exceptions). Here are some important tips to know if these reporting rules apply to you:
• FATCA Requirements.  FATCA refers to the Foreign Account Tax Compliance Act. In general, federal law requires U.S. citizens and resident aliens to report any worldwide income. You must report the existence of and income from foreign accounts. This includes foreign trusts, banks and securities accounts. In most cases you must report the country where each account is located. To do this file Schedule B, Interest and Ordinary Dividends with your tax return.
You may also have to file Form 8938, Statement of Special Foreign Financial Assets with your tax return. Use the form to report specified foreign financial assets if the aggregate value of those assets exceeds certain thresholds. See the form instructions for details.
• FBAR Requirements.  FBAR refers to Form 114, Report of Foreign Bank and Financial Accounts. If you must file this form you file it with the Financial Crimes Enforcement Network, or FinCEN. FinCEN is a bureau of the Treasury Department. You generally must file the form if you had an interest in foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2014. This also applies if you had signature or other authority over those accounts. You must file Form 114 electronically. It is available online through the BSA E-Filing System website. The FBAR filing requirement is not part of filing a tax return. The deadline to file Form 114 is June 30.
• View the IRS Webinar.  You can get help and learn about FBAR rules by watching the IRS webinar on this topic. The title is “Reporting of Foreign Financial Accounts on the Electronic FBAR.” The presentation is one hour long. You can find it by entering “FBAR” in the search box of the IRS Video Portal home page. Topics include:
o FBAR legal authorities
o FBAR mandatory e-filing overview
o Using FinCEN Form 114; and Form 114a
o FBAR filing requirements
o FBAR filing exceptions
o Special filing rules
o Recordkeeping
o Administrative guidance
You can access IRS forms, videos and tools on IRS.gov at any time.
Additional IRS resources:
IRS YouTube Videos – International Taxpayers:
Our firm has specialized in expat, nonresident and international tax returns for over 30 years. Need help or further explanation, or your return prepared, contact us.  Email us at ddnelson@gmail.com or visit our website at www.TaxMeLess.com .  

Thursday, December 22, 2016

IF YOU OR YOUR FOREIGN CLIENTS OWN RENTAL PROPERTY ANYWHERE IN MEXICO - THESE MEXICAN TAXES MUST BE PAID


  • Mexico Income Taxes
  • Mexico Value Added Taxes – IVA (16%)*
SI QUIERE LEER ESTO EN ESPANOL, FAVOR DE VER EL ANEXO.
  •  
  • Many nonresidents of Mexico have never paid any taxes on their rental income from properties they own in Mexico.  This is against Mexican tax law.  The Mexico tax code clearly states that these Mexican taxes must be paid on rental income from apartments, houses, and commercial property. Failure to do so can result (and has resulted ) in substantial penalties and legal problems with the Mexican tax authorities.
            It is now easy to pay these taxes and avoid problems  even if you or your foreign non-resident clients do not have a Mexican tax identification number (RFC).   The Settlement Company® has developed a simple and easy procedure which will allow you to be tax compliant on rental income. You do not have to suffer the consequences of failing to pay. Email us now to learn more and to get started. rentaltaxmexico@settlement-co.com
the settlement company®
(serving the Mexico real estate community since 1991)
Mañana is not  your best answer. Email us today so we can help you get started.
Visit our website for more information and to learn  the rules at: www.RentalTaxMexico.com
Note: We work with all property managers. the settlement company®  does not manage any properties.
The Good News:  The IVA you pay in Mexico is deductible on your US tax return and the income taxes you pay in Mexico can offset your US  taxes on the same income dollar for dollar.  You will not be double taxes.
*IVA is paid by tenant but collected and declared by owner.  Applies to furnished residential properties only.

If you need assistance with the US tax aspects of rental property in Mexico or any other country, or estate planning with respect to your US assets please contact  Don D. Nelson at ddnelson@gmail.com or US 949 480-1235.  We can help you plan out the  US tax consequences of your Mexican real estate transactions and advise you on how to hold title for the best US tax results.
Attachments area

Wednesday, November 16, 2016

MEXICAN TAXES ON RENTAL PROPERTIES IN MEXICO MUST BE PAID TO AVOID SEVERE PROBLEMS

 
THESE MEXICAN TAXES MUST BE PAID
 
  • Mexico Income Taxes
 
  • Mexico Value Added Taxes – IVA (16%)*
 
SI QUIERE LEER ESTO EN ESPANOL, FAVOR DE VER EL ANEXO.
  •  
  • Many nonresidents of Mexico have never paid any taxes on their rental income from properties they own in Mexico.  This is against Mexican tax law.  The Mexico tax code clearly states that these Mexican taxes must be paid on rental income from apartments, houses, and commercial property. Failure to do so can result (and has resulted ) in substantial penalties and legal problems with the Mexican tax authorities.
 
            It is now easy to pay these taxes and avoid problems  even if you or your foreign non-resident clients do not have a Mexican tax identification number (RFC).   The Settlement Company® has developed a simple and easy procedure which will allow you to be tax compliant on rental income. You do not have to suffer the consequences of failing to pay. Email us now to learn more and to get started. rentaltaxmexico@settlement-co.com
the settlement company®
(serving the Mexico real estate community since 1991)

 
Mañana is not  your best answer. Email us today so we can help you get started.
Visit our website for more information and to learn  the rules at: www.RentalTaxMexico.com
 
Note: We work with all property managers. the settlement company®  does not manage any properties.
 
The Good News:  The IVA you pay in Mexico is deductible on your US tax return and the income taxes you pay in Mexico can offset your US  taxes on the same income dollar for dollar.  You will not be double taxes.
 
*IVA is paid by tenant but collected and declared by owner.  Applies to furnished residential properties only.

US Income taxes must also be paid and a tax return filed with the IRS on your Mexican rental property. You can deduct IVA and you can take a tax credit for Mexican Income taxes.  If you rental property is owned by a Mexican Corporation, there are certain US tax elections which must be made to avoid double taxation of the rental income and double taxation of the gain on the sale of the property.  Visit our website at www.taxmeless.com or email us at US TAX EXPERT ON MEXICO REAL ESTATE ATTORNEYto learn more.

Tuesday, July 26, 2016

MAKE CERTAIN TO PAY YOUR TAXES ON RENTAL INCOME IN MEXICO OR ELSE


NOT EVERYONE RENTS THEIR MEXICO PROPERTY DURING THE SUMMER MONTHS………….

            HOWEVER, IF YOU ARE CONSIDERING RENTAL INCOME FOR THOSE “HIGH SEASON” MONTHS,

DO IT NOW!    ENROLL in the program, get the documents in order so no time is lost when you begin collecting the rents!

Pay only the set up fee and 4th quarter fee now,  and begin your tax payment program on October 1, 2016!

Why declare and pay taxes on Mexico rental revenues?

            FOREIGNERS ARE OBLIGATED TO PAY TAXES ON INCOME GENERATED IN MEXICO.  Mexico’s tax law is patterned after those of the United States and Canada (world rental system) which states in the First Article::
Article One: Physical persons (individuals) and legal persons (companies) are obligated to pay an income tax in the following cases:
I           Residents of Mexico, must report and pay on all income no matter where the source is located;
II.         Those with residence in a foreign country with a property in Mexico must report and pay on all income generated from that Mexican property.

            If you own a property in Mexico and rent it often or only occasionally,  ENJOY your rental income and SLEEP EASILY KNOWING YOU HAVE COMPLIED WITH MEXICAN TAX LAWS!

            The Settlement Company® with many years of experience in the transfer of titles and resolution of problems related to title, is able to assist you in receiving your funds in an escrow account, complying with your fiscal obligations in Mexico, providing you with the overage and the documents you require in your country of residence to avoid double taxation!

for additional information, contact  the Settlement Company today!

www.rentaltaxmexico.com                                                  www.settlement-co.com
THE SETTLEMENT COMPANY®

Wednesday, July 6, 2016

Pay Your Mexican Taxes on Your Mexican Rental Income

Under Mexican law,  all income generated from properties located within Mexican territory is subject to taxation, even if the owners are foreigners and even if all funds are collected in accounts located outside Mexico.   For many years it has been a major issue for both Mexican tax authorities and individuals attempting to comply.  For years a Federal Taxpayer ID was required to file and pay the tax.   In order to obtain this tax ID one needed to be a resident of Mexico.    This was lose-lose for both the authorities and the foreigners who were willing to pay but baffled by the issues involved to “get legitimate”.

After more than five years of Settlement Company® dialogue with Mexican tax officials, a resolution was made in which the foreign property owner could appoint a Mexican company to pay his or her taxes and dispense with all other formalities.  This has become reality!   Mexican authorities are now looking seriously to collect this long-neglected source of tax revenue and foreigners not only are lining up to pay but also to receive the receipts for payment of the taxes which can then be credited against taxes paid in their native country under the terms of the NAFTA treaty.  Remember! no double taxation is permitted under the terms of the treaty!

If you have a rental property in Mexico contact us for details.  ddnelson@hgmail.com