tag:blogger.com,1999:blog-10832194800697398082024-03-14T04:07:32.460-07:00US & Mexican Taxation for American Taxpayers in MexicoUS and Mexico Taxes for Americans Living in Mexico. If you have a fideicomiso, Mexican corporation, a foreign bank account in Mexico, or live in Mexico this blog will have data you need about the required forms 5471, 3520, 3520A, FBAR 114, 926, 8865, 2555, 1116, etc., which you may have to file if you live and work in Mexico.Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.comBlogger187125tag:blogger.com,1999:blog-1083219480069739808.post-57953389952902378102023-03-12T15:13:00.000-07:002023-03-12T15:13:04.872-07:00US EXPATRIATE TAX INFORMATION FOR AMERICANS LIVING IN MEXICO<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKNqq6k002WlBu5KY3BMLNPcl4VfYL_JKphLYAZmdfK8gIOhn12vq3dOwpcAHZfDRXvSO7UVCbxvppbIGvROYwZX8x8GXG8oDT36BH3SRWKxTOPxABzWMPLoOnZUBm8hnFJ8QdFEp0RtiunUxZXMbYoV-J4NbTr-xNtv6_dtX6sB93P4f57eQcfF7ICw/s500/Pancho_Villa.133114528_std.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="500" data-original-width="363" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKNqq6k002WlBu5KY3BMLNPcl4VfYL_JKphLYAZmdfK8gIOhn12vq3dOwpcAHZfDRXvSO7UVCbxvppbIGvROYwZX8x8GXG8oDT36BH3SRWKxTOPxABzWMPLoOnZUBm8hnFJ8QdFEp0RtiunUxZXMbYoV-J4NbTr-xNtv6_dtX6sB93P4f57eQcfF7ICw/s320/Pancho_Villa.133114528_std.jpg" width="232" /></a></div>Expatriate taxation for US citizens living and working in Mexico are complicated. You must file a US expat tax return no matter where you live and work in the world each year so long as you earned in excess of a certain amount. Failure to file can result in substantial penalties and interest and possible criminal prosecution.<p></p><p>Learn all of the rules and regulations at our website <a href="http://www.taxmeless.com" target="_blank">www.taxmeless.com </a> At our website you can download a 2022 tax questionnaire which you can use for the current year and any past unfiled returns. Contact us with your questions and inquiries by email <a href="mailto:ddnelson@gmail.com">HERE.</a> Our whatsapp number in the US is 818-519-9219. <br /></p><p>One more thing, if you owe the IRS more than $50,000 they can seize your US passport when you enter back into the US at the border or airport. We can help you resolve this problem before it happens.</p><p><a href="http://taxmeless.com/2022%20EXPAT%20QUESTIONNAIRE.doc" target="_blank">DOWNLOAD YOUR 2022 EXPAT TAX QUESTIONNAIRE</a></p><p><a href="http://taxmeless.com/2022%20FastUSTaxfactsforexpats%20011823.pdf" target="_blank">DOWNLOAD YOUR 2022 EXPAT FAST TAX FACT SHEET</a></p><br /><p><br /></p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-73746369045576633182023-02-24T10:35:00.003-08:002023-02-24T10:35:36.216-08:003 Examples of How Taxes on Mexico Rental Properties Work<p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">If you rent your real estate in Mexico full time or part time when not using it the income you make is subject to several rental taxes in Mexico. This applies to owners who are residents and nonresidents. These taxes also apply to rental of <a href="http://rentaltaxmexico.com/wp-content/uploads/2015/11/Umbrella-Beach.jpg" style="background: transparent; border: 0px; box-sizing: border-box; color: #f4a555; margin: 0px; outline: 0px; padding: 0px; text-decoration-line: none; text-size-adjust: 100%; vertical-align: baseline;"><img alt="No Problems With Taxes on My Mexican Rental Property" class="size-medium wp-image-122 alignright" decoding="async" height="218" sizes="(max-width: 300px) 100vw, 300px" src="http://rentaltaxmexico.com/wp-content/uploads/2015/11/Umbrella-Beach-300x218.jpg" srcset="https://rentaltaxmexico.com/wp-content/uploads/2015/11/Umbrella-Beach-300x218.jpg 300w, https://rentaltaxmexico.com/wp-content/uploads/2015/11/Umbrella-Beach.jpg 360w" style="background: transparent; border: 0px; box-sizing: border-box; display: inline; float: right; height: auto; margin: 0px 0px 0px 15px; max-width: 100%; outline: 0px; padding: 0px; text-size-adjust: 100%; vertical-align: baseline;" width="300" /></a>your timeshare. Failure to pay all applicable taxes can result in severe penalties. The following examples explain the taxes and penalties you will incur for ignoring Mexican tax laws:</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;"><span style="background: transparent; border: 0px; box-sizing: border-box; font-weight: 700; margin: 0px; outline: 0px; padding: 0px; text-size-adjust: 100%; vertical-align: baseline;">Example 1. </span> Bill and his wife Sarah rent out their condominium in San Jose for 5-6 months out of the year on a weekly or monthly basis to tourists. Though they report their rental income and expenses on their US tax return, they have never paid any taxes on that rental income to the Mexican tax authorities. Their neighbors have told them not to worry, since no one ever pays taxes on vacation rental income in Mexico and probably do not have to.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Is this actually true? No! Definitely not! Bill and his wife must pay taxes on their income which is generated in Mexico!</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">What kind of taxes should they be paying and how much?. They must pay the ISR tax, a type of income tax, in the amount of 25% of the gross rents and, if the unit is furnished, a 16% Value Added Tax (IVA).</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">An important point The ISR TAX they pay can become a tax credit in the US, so double taxation is avoided. The 16% IVA tax is generally paid by the tenant and is simply declared by the landlord.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">What are the penalties, interest, etc. they might incur? The penalty for not being enrolled as a taxpayer is 2,740. to 8,230 pesos. The penalty for not making 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.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Are there any other possible legal consequences for failing to pay taxes on rental income from their condominium? If the tax authorities have not discovered the illegal rental income and notified the landlords, back interest and penalties may be waived.. It is important, however, to begin declaring and paying prior to discovery.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;"><span style="background: transparent; border: 0px; box-sizing: border-box; font-weight: 700; margin: 0px; outline: 0px; padding: 0px; text-size-adjust: 100%; vertical-align: baseline;">Example 2.</span> Phil owns a home in Cabo San Lucas. He leases it to a Timeshare salesperson on a yearly basis. The renter pays the monthly rent directly to Phil’s US bank account and no money is paid in Mexico.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Does Phil have to pay taxes on that income in Mexico?. Absolutely! Phil has an obligation to pay taxes on any income generated on property located in Mexico.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">What are the taxes and when are they due?. Phil must pay the ISR tax, a type of income tax, in the amount of 25% of the gross rents and, if the unit is furnished, a 16% Value Added Tax (IVA).</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">What are the consequences of failing to report the rental income in Mexico? Much the same as Bill and his wife in the example above, Phil will be liable for not being enrolled as a taxpayer which can cost him 2,740. to 8,230 pesos. The penalty for not making 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 a first violation for Phil.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Should he go back and pay in those taxes for past years when he failed to pay the taxes? If the Mexico tax authorities have not notified Phil he is in violation of the tax code, he probably will not need to file back taxes. The important point is to begin and to be consistent in the future.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Since Phil is a nonresident and does not have a factura number, how can he pay taxes? Phil must appoint a Mexican company or an individual to be responsible for the retention and the filing of these taxes. His official representative will issue the correct invoice or factura.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;"><span style="background: transparent; border: 0px; box-sizing: border-box; font-weight: 700; margin: 0px; outline: 0px; padding: 0px; text-size-adjust: 100%; vertical-align: baseline;">Example 3. </span> The Smiths normally do not rent out their home in Todos Santos. But since they are taking a 2 month tour of Europe they are renting it out for $3500 per month for two months.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Do they have an obligation to report this rental income to the SAT? Yes, they have an obligation to report and pay taxes on any income generated from property located in Mexico.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">. They are permanent residents of Mexico, and Canadian Citizens. They also do not report any of their other income earned in Canada in Mexico. It is now a year later and they have learned that rental income must be reported and taxes must be paid on it.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">How much tax will they owe? Technically they owe $875. USD, plus 16% IVA.</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">What will be the penalties for failing to report that income on a timely basis?</p><p style="background: rgb(255, 255, 255); border: 0px; box-sizing: border-box; color: #666666; font-family: "Open Sans", Arial, sans-serif; font-size: 14px; margin: 0px; outline: 0px; padding: 0px 0px 1em; text-size-adjust: 100%; vertical-align: baseline;">Penalties could be as listed above.</p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-86409401617917989802023-02-21T11:48:00.001-08:002023-02-21T11:48:04.369-08:002022 Tax Facts for US Expatriates and Green Card Holders Living and Working in Mexico<h3 class="post-title entry-title" itemprop="name" style="background-color: white; color: #29aae1; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 18px; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; position: relative;"><br /></h3><div class="post-header" style="background-color: white; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 1.6; margin: 0px 0px 1em;"><div class="post-header-line-1"></div></div><div class="post-body entry-content" id="post-body-829569056475840330" itemprop="articleBody" style="background-color: white; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13px; line-height: 1.4; position: relative; width: 586.4px;"><p dir="ltr" style="line-height: 1.2; margin: 3.65pt 59.55pt 0pt 59.5pt; text-align: center;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> 2022 Fast Tax Facts for US Expatriates and Green Card Holders</span></p><p dir="ltr" style="line-height: 1.2; margin: 3.65pt 59.55pt 0pt 59.5pt; text-align: center;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> Living and Working in Mexico</span></p><p dir="ltr" style="line-height: 1.2; margin: 3.65pt 59.55pt 0pt 59.5pt; text-align: center;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 9pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Kauffman Nelson LLP CPAS - Don D. Nelson , Attorney, Charles Kauffman CPA</span></p><p><span id="docs-internal-guid-ea6cd012-7fff-e3f9-1156-3500e8ea9880"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If you are a US Citizen or green card holder you must file a US tax return every year unless</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> your taxable income </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">is below a certain threshold. Even if your income is below that threshold,</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> you may still be required to file certain </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">forms to report foreign assets, etc. Failure to file these</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> forms can result in severe IRS penalties </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">If you do not itemize your health, tax, interest, charitable</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> and miscellaneous deductions you get a </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">standard deduction of $12,950 if single or filing as</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> married filing separately or $25,900 if you file jointly </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">with your spouse. </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">As a US expatriate living and working abroad 4/18/2023 your 2022 tax return is automatically</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> extended until </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">6/15/23 but any taxes due must be paid by 4/18/23 to avoid penalties and interest. </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;">The return can be further </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">extended until 10/15/2023 if the proper extension form is filed. An even</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> further extension until December may be </span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">available if the proper letter is sent to the IRS.</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9.55pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">For 2022 if you are a qualified expatriate you get a foreign earned income exclusion (earnings from </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">wages or self employment) of $112,000 but this exclusion is only available if you file a tax return. </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">You must </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">qualify under one of two tests to take this exclusion: (1) bona fide resident test or</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> (2) physical presence test. </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">You can read more about how to qualify in IRS Publication 54. This</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> exclusion only applies to income taxes </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">and does not apply to US self- employment tax </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">(social security plus medicare). Your spouse who lives </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">works abroad with you will also be</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> able to use this exclusion against any earned income they have abroad. </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">You can lose this exclusion if you file your return more than 18 months late.</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> The exclusion can only be claimed </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">on filed tax return and does not apply if you fail to</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> file a tax return.</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: "Times New Roman"; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: "Times New Roman"; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;"> </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">If you receive a gift or inheritance of $100,000 or more during 2022 from a nonresident </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">individual </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">or nonresident corporation you must file form 3520 to report that gift. If you fail </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">to file that form you </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">will incur substantial penalties and taxes. .</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.95pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If your foreign earnings from wages or self -employment exceed the foreign earned income </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.95pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">exclusion you can claim a housing expense for the rent, utilities and maintenance you pay if </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.95pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">those amounts that exceed a minimum non-deductible amount. There is a limit to the housing</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.95pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> amount and in certain “high-cost” locations there is a higher amount of housing expense which</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.95pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> can be considered. (For “high-cost” country limitations see Form 2555 instructions).</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 13.2pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">You get credits against your US income tax obligation for foreign income taxes paid to a </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 13.2pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">foreign country but you must file a US tax return to claim these credits. This avoids double </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 13.2pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">taxation </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">of the same income. Value added taxes paid to foreign countries are not eligible </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 13.2pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">for this credit.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 33.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If you own 10% or more of a Foreign corporation or Foreign partnership (LLC) you must</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 33.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> file special IRS form 5471 or 8865, or incur substantial penalties which can be greater </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 33.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">including </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">criminal prosecution if the IRS discovers you have failed to file these forms.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If you create a foreign trust or are a beneficiary of a foreign trust you may be obligated </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">to file forms 3520 and /or 3520A each year to report those activities or be subject to</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> severe penalties of $10,000 US or more </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">Foreign foundations and nonprofits which indirectly</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.4pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> benefit you may be foreign trusts in the eyes</span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> of the IRS.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Your net self-employment income in a foreign country (earned as an independent </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">contractor or </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">in your own sole proprietorship) is subject to US self-employment tax</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> (medicare and social security) </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">of 15.3% which cannot be reduced or eliminated by the</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> foreign earned income exclusion or foreign </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">tax credits. The </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; text-indent: -18pt; vertical-align: baseline; white-space: pre;">one exception </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">is if you live </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">in one of the very few countries that have a social security </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">agreements with the US </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">and</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 8.45pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> you pay the equivalent of social security in that country. </span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Forming the correct type of foreign corporation and making the proper US tax election</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> (to cause the income and foreign taxes the foreign corporation pays to flow through to your </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">personal US tax return) with the IRS for that corporation may save you significant income taxes </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">and avoid later adverse tax consequences. You need to investigate this procedure before you</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> actually form that foreign because it can be difficult to make that election later and only certain </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">types of foreign business entities are eligible to make this election.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If at any time during the tax year your combined highest balances in your foreign bank and</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> financial accounts (when added together) ever equal or exceed $10,000US you must file </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">a FBAR </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">form 114 with the IRS by October 15, 2023 for the 2022 calendar year or incur a</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> penalty of $10,000 US </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">or more including criminal prosecution. Foreign financial accounts</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> often include accounts when you </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">sign on for a foreign corporation, foreign partnerships</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> foreign pension plans, stock brokerage </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">accounts, and cash surrender value of foreign life </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> insurance. This form does not go in with your personal </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">income tax return and can only be </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">filed separately on the web at: </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><a href="http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html</span></a></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 3.7pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">The IRS gets lists of Americans applying or renewing for US passports or entering the country.</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 3.7pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> They will compare these lists with those who are filing US income tax returns and take action</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 22.45pt; margin-top: 3.7pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> against those who do not file US returns but are US residents or citizens.</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: "Times New Roman"; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: "Times New Roman"; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">Often due to foreign tax credits and the foreign earned income tax expats living abroad</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;"> who file </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; text-indent: -18pt; vertical-align: baseline; white-space: pre;">all past year unfiled tax returns end up owing no or very little US taxes. </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">The IRS has a special program </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;">which will help you catch up if you are in arrears which will</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-indent: -18pt; vertical-align: baseline; white-space: pre;"> </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; text-indent: -18pt; vertical-align: baseline; white-space: pre;">reduce or possibly eliminate</span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">all potential penalties for failing to file the required foreign</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> asset reporting forms. </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">We can direct you to the best program for your situation, prepare </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 11pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">the returns and forms and represent </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">you before the IRS.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Beginning in 2011 a new law went into effect which requires all US Citizens report </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">all of their </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">worldwide financial assets with their personal tax return if in total the value </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">of those assets exceed </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">certain minimum amounts starting at $50,000. Failure to file that</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> form 8938 on time can result in a </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">penalty of $10,000. The form is complex and has</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> different rules that apply to you if you live abroad </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">or live in the US. This form is</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 4.7pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> required in addition to the FBAR form 114.</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Certain types of income of foreign corporations are immediately taxable on the</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> US shareholder's </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">personal income tax return. This is called Subpart F income. The rules are</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> complex and if you own a </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">foreign corporation you need to determine if these rules apply to</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> you when you file the required form </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">5471 for that corporation. For 2018 a new tax was</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> enacted with the acronym of GILTI tax. This may </span><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;">or may not cause an owner of</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="font-family: Arial; font-size: 10pt; text-indent: -18pt; white-space: pre;"> a Controlled Foreign Corporation (CFC) to owe taxes on the income it </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">does not distribute to its owners. This GILTI tax applies to 10% or more </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 9.3pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">owners of CFCs. </span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If you own investments in a foreign corporation or own foreign mutual fund shares you</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> may be required to file the IRS form 8621 for owning part of a Passive Foreign Investment</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> Company (PFIC) or incur additional, taxes and penalties for your failure to do so. A PFIC </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">is any foreign corporation that has more than 75% of its gross income from passive income</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 3.6pt 0pt 23.1pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> or 50 percent or more of its assets produce or will produce passive income.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 4.45pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">There are many more special tax laws too numerous to mention here that apply to expatriates,</span><span style="font-family: Arial; font-size: 10pt; white-space: pre;">green card holders. nonresidents and US taxpayers with foreign assets, businesses, etc.</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> Please consult with Kauffman Nelson LLP if you have other offshore tax planning or return </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 4.45pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; white-space: pre;">filing questions.</span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 7.2pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Download your </span><span style="background-color: transparent; color: blue; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> </span><span style="background-color: transparent; color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;"> </span><a href="http://taxmeless.com/2020%20EXPAT%20QUESTIONNAIRE122820.doc" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">2022 Expatriate Tax Questionnaire</span></a> <span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">at </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">www.taxmeless.com</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">. </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 7.2pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 7.2pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">Send us your completed questionnaire and we will immediately provide you with a flat fee</span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 7.2pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> quote for</span><span style="font-family: Arial; font-size: 10pt; white-space: pre;"> preparing your return(s). </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 7.2pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 8pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Don D. Nelson, US Tax Attorney, Charles Kauffman CPA, </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 8pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Kauffman Nelson, LLP, CPAs</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 8pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Huntington Beach, California USA
Cabo San Lucas, Baja Sur, Mexico</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 8pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 8pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">US Phone: (949) 480-1235, US Fax: (949) 606-9627</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Email:</span><a href="mailto:ddnelson@gmail.com" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">ddnelson@gmail.com</span></a><span style="background-color: transparent; color: blue; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> or </span><a href="mailto:ustax@hotmail.com" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">ustax@hotmail.com</span></a><span style="background-color: transparent; color: blue; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> </span><span style="background-color: transparent; color: blue; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Skype address: dondnelson whatsapp: 818-519-9219 (US)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Website: </span><a href="http://www.taxmeless.com/" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">www.taxmeless.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 42.3pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Visit our International Tax Blog for the Latest Expat and International Tax </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 42.3pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Developments at</span><a href="http://www.usexpatriate.blogspot.com/" style="color: #29aae1; text-decoration-line: none;"><span style="color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">www.usexpatriate.blogspot.com</span></a><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> / </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;"> </span><a href="http://us-mexicantax.blogspot.com/" style="color: #29aae1; text-decoration-line: none;"><span style="color: navy; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">http://us-mexicantax.blogspot.com</span></a></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">We have been preparing tax returns and assisting US clients located in over 123</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> countries </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">around the </span><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">world for over 30 years. We also assist US Nonresidents </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">meet their US tax </span><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">obligations and return filing </span><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">requirements. Email, skype or phone</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;"> us for immediate assistance. </span></p><p><br /></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">ARE YOU NOW CONFUSED OR HAVE SPECIFIC QUESTIONS?</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"><br /></span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">WE OFFER MINI TAX CONSULTATIONS BY PHONE, SKYPE OR EMAIL: The mini </span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">consultations</span><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">(with attorney client privilege) to answer your tax questions and</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;"> resolve your </span><span style="font-family: Arial; font-size: 10pt; font-weight: 700; white-space: pre;">tax issues. </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Email </span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">ddnelson@gmail.com</span><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> to learn more or request a</span></p><p dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-right: 9pt; margin-top: 0pt;"><span style="color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> consultation</span></p><p style="text-align: justify;"><br /></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.95pt 0pt 5.1pt;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">For additional useful information and tax assistance go to our website at. </span></p><p dir="ltr" style="line-height: 1.2; margin: 0pt 6.95pt 0pt 5.1pt;"><a href="http://www.taxmeless.com/" style="color: #29aae1; text-decoration-line: none;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 10pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre;">www.TaxMeLess.com</span></a></p><p><br /><br /><br /><span style="border: none; display: inline-block; height: 106px; overflow: hidden; width: 171px;"><img height="106" src="https://lh6.googleusercontent.com/nQDrupnmWXEjm_brmZvXylXUZiuby92mT-iFjz_VyTFyl5_LzABYpkU7Y81gTvBej6hQ9tAdmk0PQ0mFiaS49xGsdpLx-FMOuFwDY4anOKSw6Attx36T2fKG275PxkWBMbtJ4UJPo_MJG2cG9-GB67MhlZh4lKQil_wH1f2tyff23SktPbQhmL4OCE96oAGrLT3w17b-bw" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-radius: 0px; border: 1px solid rgb(204, 204, 204); box-shadow: rgba(0, 0, 0, 0.2) 0px 0px 20px; margin-left: 0px; margin-top: 0px; padding: 8px;" width="171" /></span></p><p dir="ltr" style="line-height: 1.2; margin: 1.7pt 171.9pt 0pt 5.1pt; text-align: justify;"><span style="background-color: transparent; color: black; font-family: "Times New Roman"; font-size: 9pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">Disclaimer and Conditions: The information contained herein is general in nature and is not to be construed</span></p><p dir="ltr" style="line-height: 1.2; margin: 1.7pt 171.9pt 0pt 5.1pt; text-align: justify;"><span style="background-color: transparent; color: black; font-family: "Times New Roman"; font-size: 9pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;"> or relied on </span><span style="font-family: "Times New Roman"; font-size: 9pt; font-weight: 700; white-space: pre;">as tax or legal advice with respect to you individual tax situation or questions. Your use of this </span></p><p dir="ltr" style="line-height: 1.2; margin: 1.7pt 171.9pt 0pt 5.1pt; text-align: justify;"><span style="font-family: "Times New Roman";"><span style="font-size: 12px; white-space: pre;"><b>does not create an attorney/CPA client relationship between you and this firm. You must retain competent</b></span></span></p><p dir="ltr" style="line-height: 1.2; margin: 1.7pt 171.9pt 0pt 5.1pt; text-align: justify;"><span style="font-family: "Times New Roman";"><span style="font-size: 12px; white-space: pre;"><b>CPA and Attorney counsel to advise you on your particular situation.</b></span></span></p></div>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-3302106202629802023-02-21T11:41:00.003-08:002023-02-21T11:41:54.702-08:00US Tax Factors When Forming a Mexican Corporation<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjxlq9xXX4chpD27it3MScuMeyj1gWC_W1N0CsIcnJXzRAEqtR9qTuduNNQpo7CwA5BJ2MS0bpCwow4FSB73pIB2io7VFtqtGUsRoBSYorQVvNGtPh_204LVe1sWZO6S-HkljJump5JO6MSksnYArepSrtC4aC0TsTGxAssSxjAuiR_vVz444lcPXRqw/s171/bordercrossing200fade.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="171" data-original-width="171" height="171" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjxlq9xXX4chpD27it3MScuMeyj1gWC_W1N0CsIcnJXzRAEqtR9qTuduNNQpo7CwA5BJ2MS0bpCwow4FSB73pIB2io7VFtqtGUsRoBSYorQVvNGtPh_204LVe1sWZO6S-HkljJump5JO6MSksnYArepSrtC4aC0TsTGxAssSxjAuiR_vVz444lcPXRqw/s1600/bordercrossing200fade.jpg" width="171" /></a></div> There are two main types of Mexican corporations. Both are taxed in the same way in Mexico but only when of those two are eligible for often advantageous tax treat on your US tax return if the proper election is made for US tax purposes. That US tax election must be made with the IRS within a certain time period after your Mexican corporation is formed. If you do not make the election in that period making it later may cause you to pay unnecessary US and Mexico income taxes.<p></p><p>The two primary types of Mexico corporations are (a) <span style="background-color: white; color: #202124; font-family: Roboto, arial, sans-serif; font-size: 16px;">Sociedad Anonima or (2) </span><span style="background-color: white; color: #202124; font-family: Roboto, arial, sans-serif; font-size: 16px;">Sociedad de Responsabilidad Limitada.</span></p><p>We can help you chose the best type of Mexico corporation for your Mexico business or real estate ownership or rental property. This of course depends on the net profit you project the corporation to make. We can also help you file the election (if you have the correct type of corporation in Mexico) with the IRS which will allow you to take a tax credit on your personal US return for taxes paid by the corporation in Mexico. That tax credit will reduce your US taxes you might have to pay on that corporate income.</p><p>We can help you chose the best type of Mexico corporation to achieve the optimum savings on your US tax return. Email US to set up a mini- consultation before you form your Mexico corporation. <a href="mailto:ddnelson@gmail.com" target="_blank">CONTACT US HERE</a></p><p><br /></p><br /><p><br /></p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-65203846236317297422023-02-13T14:07:00.003-08:002023-02-13T14:11:53.178-08:0014 Important US Tax Rules and Laws that Apply to US expatriates living or working in MexicoMost of the special tax rules and breaks (14 items in all) that apply to US expatriates are listed in the the following summary: <a href="http://taxmeless.com/2022%20FastUSTaxfactsforexpats%20011823.pdf" target="_blank">DOWNLOAD HERE</a>. These rules can be applied to your situation, as a Mexico resident or property owner with our expertise. We have been serving US expatriates living in Mexico with our tax return preparation and planning for over 30 years. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnCcYJSq-F1Cp1bS2JdzPAjUguix3Cn4oERmzEeC9o22VsyOLVoN5v4nTUPgrhbgZHOFUIzLCc3K_ASxNY_COUn67s7CwxAZSXAxJOxHGBbqFLFzBeRk_uTZw2CbJ2Dtab0a8gi-wKYXcpWTZUcF5bWqOaHXoi5JqzGkBJ5LWdt5zkW3NPtIyWJY2YJg/s144/Aztec%20Cal.gif" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="139" data-original-width="144" height="136" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnCcYJSq-F1Cp1bS2JdzPAjUguix3Cn4oERmzEeC9o22VsyOLVoN5v4nTUPgrhbgZHOFUIzLCc3K_ASxNY_COUn67s7CwxAZSXAxJOxHGBbqFLFzBeRk_uTZw2CbJ2Dtab0a8gi-wKYXcpWTZUcF5bWqOaHXoi5JqzGkBJ5LWdt5zkW3NPtIyWJY2YJg/w144-h136/Aztec%20Cal.gif" width="144" /></a></div><div><br /></div>Contact us with your questions at<a href="mailto:taxmeless@gmail.com" target="_blank"> taxmeless@gmail.com</a> Visit our website at <a href="http://www.taxmeless.com" target="_blank">wwww.taxmeless.com</a> You can text of whatsapp us at 818-519-9219 (US No.)<div><br /></div><div>We are Attorney and CPAs with the knowledge and experience that will save you money and if you are behind in filing with the IRS help you enter their catch up programs which reduce or eliminate penalties. We look forward to making this an easy and simple experience for you. All services provided virtually. We are license in California and located in Huntington Beach and Cabo San Lucas.</div><div><br /></div><div><a href="https://www.blogger.com/blog/post/edit/7276564/829569056475840330" target="_blank">View 14 important rules that apply to US expats in Mexico and may save you money (click this sentence)<br /></a><div><a href="https://www.blogger.com/blog/post/edit/7276564/829569056475840330" target="_blank"><br /></a></div><div><br /><div><br /></div><div><a href="http://www.taxmeless.com" target="_blank"><br /></a><div class="separator" style="clear: both; text-align: left;"><br /></div><br /></div></div></div>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-15056704038324994252022-07-16T11:43:00.001-07:002022-07-16T11:43:08.950-07:00Mexicoś income tax rates personal and corporate income earned in Mexico<p>Go the following link to read about Mexicoś personal income tax rates on individuals. <a href="https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income"><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOQpCnBn1sns3IygwdD8zy3dhJJxPyao6mAAvAWsWHITZ53IczmPSkufSUXsWP6SbOeOFLX5QyRyi-e9vkX70_xXlx-zCBj9Kx9hLzsEu6XPMjtOsp9LSdpUZz89WlxPww-igkxzO-JWcaAwTEbw3PQY5PmWTnaaJSOINnwtIBoDdWyuVa-7RPoNPYog/s1600/IMG_1260.JPG" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1200" data-original-width="1600" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOQpCnBn1sns3IygwdD8zy3dhJJxPyao6mAAvAWsWHITZ53IczmPSkufSUXsWP6SbOeOFLX5QyRyi-e9vkX70_xXlx-zCBj9Kx9hLzsEu6XPMjtOsp9LSdpUZz89WlxPww-igkxzO-JWcaAwTEbw3PQY5PmWTnaaJSOINnwtIBoDdWyuVa-7RPoNPYog/w200-h150/IMG_1260.JPG" width="200" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Cabo San Lucas - a Tax Haven?</td></tr></tbody></table>https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income</a>.</p><p>Mexican corporations pay a flat rate of 30% of net profit.</p><p>Most Mexico dividends and interest paid by banks are taxed at 10% which is the amount the payor withholds when that income is distributed to you.</p><p>Need further advice or return preparation on your US taxes with respect to you rental, business or other income from Mexico? Email us at <br /><a href="mailto:ddnelson@gmail.com" target="_blank">Mexico -US tax informaton</a></p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-74536819473938335112022-05-29T17:05:00.003-07:002022-05-29T17:05:46.718-07:00PAYING TAXES ON MEXICAN RENTAL PROPERTY - FOR NONRESIDENT OWNERS<p> Nonresidents of Mexico who own rental property there must pay Mexican income tax and in many</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7xkVb_CGZ8vC5LlJzDejlnXvfwv2E0sj1UmhzsuifvTVuGZ9hXmiwJpKlfu8r1w_1Ros6ehVN9k8gh3510GUHcD6QZbcIMnpctM8UZpZ5liEPtsTMgqHPJB37RzOoxiI8DVJZqXoSBhCfZDwF8DbZ-ShcwA2bAqLCfyWRtxmff-8SE5-yJtmyu4w7Dw/s1048/arch%20cabo.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><br /></a></div> instances Mexican IVA (value added taxes) on their rental income. Failure to do so can result in huge penalties when caught by the SAT (Mexican IRS). If you rent out through VRBO or ARBNB they will<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXlmIWGPEzqwqJw4M5L-kF62Dmdm9dzJ66cxjYj6BNYvuKBH6PXS-vXzoVwj8kd1PWfZN5TB3kTjxXdpkuHrh6HKZHKvWyzTWlO4M2V13JKEVL_oHdPldrXpYEFEygVPBKOQ5eif3dD5lRi4_d__xtQcfT9Bq9YiS8uGIuk7hbrhhAgdwrgRn41SuEcQ/s1048/arch%20cabo.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="688" data-original-width="1048" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXlmIWGPEzqwqJw4M5L-kF62Dmdm9dzJ66cxjYj6BNYvuKBH6PXS-vXzoVwj8kd1PWfZN5TB3kTjxXdpkuHrh6HKZHKvWyzTWlO4M2V13JKEVL_oHdPldrXpYEFEygVPBKOQ5eif3dD5lRi4_d__xtQcfT9Bq9YiS8uGIuk7hbrhhAgdwrgRn41SuEcQ/s320/arch%20cabo.jpg" width="320" /></a></div><br /> pay the taxe for you but if you have a long term rental or do short term rentals on your own, you must file the required tax returns. Now even those with FMM (tourist permits) can get an RFC (tax id number) so they can pay their Mexico income taxes. <p></p><p>Read more about how Mexico rental taxes work here:<a href="http://rentaltaxmexico.com/">http://rentaltaxmexico.com/</a></p><p>We have been assisting Gringos living and owrking in Mexico with their US taxes for over 20 years. Write us for more information: <a href="mailto:ddnelson@gmail.com">Kauffman Nelson LLP, Certified Public Accountants</a> Email us for more information and assistance.</p><p><br /></p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-82206885699109244282022-05-29T16:55:00.004-07:002022-05-30T10:00:51.595-07:00Register in the RFC as a natural person if you are a foreigner - Even if you only have a FMM (tourist visa)<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHRukP0Exhcr0-COwti8eC3efKWUI0O6kKl4-0uM7ObFmapS1P8Ol7kc1UFqbWCw8P3fBl8L7lL8rQoJh-nHd0CDp5YRrSFym7Zi4QoCsO4FOmKOh3gESklSv4uVPxjgJim8C2K2FzspaIs7m44juEUrsNdZe8iU2rU8-WUwyWlcPyRo03JPiUX5UsrQ/s2834/IMG_1111.JPG" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="2435" data-original-width="2834" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHRukP0Exhcr0-COwti8eC3efKWUI0O6kKl4-0uM7ObFmapS1P8Ol7kc1UFqbWCw8P3fBl8L7lL8rQoJh-nHd0CDp5YRrSFym7Zi4QoCsO4FOmKOh3gESklSv4uVPxjgJim8C2K2FzspaIs7m44juEUrsNdZe8iU2rU8-WUwyWlcPyRo03JPiUX5UsrQ/s320/IMG_1111.JPG" width="320" /></a></div><span style="background-color: white; color: #333333; font-family: "Century Gothic"; font-size: 16.2144px;">Visit the SAT website to learn how to sub</span>scribe for an RFC as a fiscal person as a foreigner <span style="background-color: white; font-family: "Century Gothic";"><span style="color: #333333;"><span style="font-size: 16.2144px;">. ( Learn more at SAT website: </span></span><span style="font-size: 16.2144px;"><u style="color: #0000ee;">https://www.sat.gob.mx/tramites/97439/inscribete-en-el-rfc-como-persona-fisica-si-eres-extranjero</u><span style="color: #0000ee;"> </span>If you do not read Spanish use google to translate the webpage for you.</span><span style="color: #333333;"><span style="font-size: 16.2144px;"> You must have this number if you rent out property you own in Mexico even though you do not have a temporary or permanent resident status. Many Mexican banks and others are now requiring this number. The process securing an RFC tax number is complex and will require the assistance of a Mexican Notary.</span></span></span><p></p><p>If you rent your casa in Mexico you do own mexican income taxes on your rental income and in some situations Value Added taxes to the SAT (Mexican IRS). This number is required by the SAT. If you rent through ARBNB or VRBO they have made arrangements to pay the tax for you though you do not have an RFC number and do not file a Mexican tax return.</p><p>If you do pay Mexican income taxes on your rental income you do get to claim it as a tax credit against the taxes you pay on your US Income Tax return on that rental income. Yes your worldwide income MUST be reported on your US income.</p><p>How do Mexican rental taxes work? Go to to learn how to properly handle your rental: <a href="http://rentaltaxmexico.com/">http://rentaltaxmexico.com/</a> Failure to pay the tax can result in huge penalties and interest when the SAT finds you.</p><p>We have been helping Americans with their US taxes in Mexico for over 20 years and can help you with the complex international tax issues which may be involved. We are US CPAs and Attorneys with over 20 years experience each in international taxation. Email Don D. Nelson, Attorney at Law at <a href="mailto:ddnelson@gmail.com">ddnelson@gmail.com</a> for more information and for assistance.</p>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-26280818238696788362020-06-01T11:13:00.000-07:002020-06-01T11:13:50.360-07:00Excellent Contadore Accountant For Your Mexican Tax Returns<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0SxGD-NflZt0ckAwkt15Imj2XPC-cxwBDvwraZckvaTA2OzKJjoEg0d1lSIvGupvg4pemg8bK_eQEI0YB2G4aa3k7j60eWFHp1Y5i09qF3_W2hnC9feRkYsT-G8BAwZIl7AOfu5tAy0K4/s1600/donkey.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="180" data-original-width="314" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0SxGD-NflZt0ckAwkt15Imj2XPC-cxwBDvwraZckvaTA2OzKJjoEg0d1lSIvGupvg4pemg8bK_eQEI0YB2G4aa3k7j60eWFHp1Y5i09qF3_W2hnC9feRkYsT-G8BAwZIl7AOfu5tAy0K4/s1600/donkey.jpg" /></a>Many expats living in Mexico ask us for referrals to excellent Mexico accountants to help them with their Mexico income taxes and other Mexico Tax Matters. We have worked for years with Lance and Sarahi and strongly recommend them to assist you. English is spoken. If you need help, contact:<br />
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Lance E Niederhaus, CPA</div>
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CP Sarahí Soto<br />LS Accounting & Tax Services SC<br />Mex Cell: <a dir="ltr" href="tel:+52%20(624)%20157-6605" target="_blank">+52 (624) 157-6605</a><br />Google Voice: <a dir="ltr" href="tel:+1%20(949)%20436-7737" style="text-decoration-color: rgba(128, 128, 128, 0.38);" target="_blank">+1 (949) 436-7737</a><br />Email: <a dir="ltr" href="mailto:lanceniederhaus@icloud.com" style="text-decoration-color: rgba(128, 128, 128, 0.38);" target="_blank">lanceniederhaus@icloud.<wbr></wbr>com</a></div>
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If you need assistance with your US tax needs contact us at 949-480-1235 US or at our email address at <a href="mailto:ddnelson@gmail.com" target="_blank">taxmeless </a>We have been doing US taxes for Gringos in Mexico for over 30 years. We are experts at helping our clients catch up with the IRS and resolving problems resulting from not filing returns.</div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-27527607734366591502020-05-19T09:14:00.004-07:002020-05-19T09:14:33.501-07:00Mexico IVA and Income Taxes Will be Witheld from Payments made to VRBO, ARBNB, by vacation rental renters<div dir="ltr" style="text-align: left;" trbidi="on">
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The Hacienda or SAT has reached a deal with VRBO, ARBNB and other web based vacation rental companies to withhold Mexico income taxes and IVA from payments made by renters on vacation homes. If you are using one of these services to rent your property stating June 1, 2020, these taxes will be withheld from your rent receipts prior to the balance being remitted to you as the property owner.<br />
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When you rent out yourself or a long term rental or do not use one of web vacation rental companies you still must pay rental income tax and the tenant must pay IVA which you must collect. <a href="http://www.rentaltaxmexico.com/" target="_blank"> If you are a premanent resident and have an RFC number you must file a tax return monthly and if you are a nonresident who owns the real property rented in Mexico you need to use one of the services such as the Settlement Company to pay those taxes. The tax rates are different for residents with RFC numbers versus others. Read more about it here.</a><br />
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The good news is that you get a credit for the Mexico income taxes paid against the tax you pay in Canada or US on that rental income and get to deduct the IVA. If you need assistance claiming the credit email us. Many US accountants do not know how to claim a foreign tax credit while we have been doing for our clients for over 30 years. <a href="mailto:ddnelson@gmail.com" target="_blank">Email Kauffman Nelson LLP .....US CPAs</a><br />
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-37770841177135504672020-05-08T09:40:00.002-07:002021-01-03T08:18:47.256-08:00CHANGES COMING IN THE COLLECTION OF MEXICAN TAXES ON RENTAL INCOME!<div class="separator"><div style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="685" data-original-width="915" height="149" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYR0io9tCJv9nQL_JSXeAfZIgMciWuRGxZ39dnjgVSoFQZGZ2h5ag3FoGYYzIW6G8wiL_vWeE85tkdM0FojuI6CssGNXUZtEQWNfW5IxWMXUv4zHHXY0hyphenhyphen46YpwdTnhq3TRKy9Tn3X87ct/w200-h149/house+residential+spanish.jpg" width="200" /><br /></div></div><div>It has always been necessary to declare and pay tax on any and all income generated</div><div>by rental of Mexican properties. No news there! What is new is that the Mexican tax</div><div>authorities are taking an aggressive stance in tax collection and are requiring all</div><div style="text-align: left;">technological platforms (think VRBO, AirBnB, etc) to withhold and pay tax from income</div><div>generated.</div><div>This new law is slated to take effect on June 1, 2020. Due to the slowdown from CO-</div><div>VID 19, regulations and procedure have not been published and this may delay things a</div><div>bit. It IS coming however! Be prepared! More details to be published in the Gringo</div><div>Gazette in the May 25 edition. Also watch this blog for further information or write us at</div><div style="text-align: left;"><a href="mailto:ddnelson@gmail.com" target="_blank">ddnelson@gmail.com </a></div>Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-31621500417425968002020-03-27T10:22:00.002-07:002020-03-27T10:22:40.503-07:00Covid Tax Return Deadlines and Other IRS and State Covid Tax Changes<div dir="ltr" style="text-align: left;" trbidi="on">
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<br /><br />Current government and IRS pronouncements are not clear whether the automatic extension of time to file your tax returns and pay taxes without penalties apply to US expatriates living and working abroad (normal tax return due date for expatriates is 6/15/20). This may be clarified in the future, but in the interim if you are an expatriate you may want to pay all taxes by 4/15/20 to avoid interest.<br /><br />The automatic extension until July 15,2020 under the COVID tax bill does not currently appear to include an automatic extension of time to file certain special reporting forms such as 5471, 3520, etc. Therefore, it is best until this is clarified that you file an IRS extension request for any returns that include these forms or the forms by the previous regular due date.<br /><br />1040-NR returns which were previously due on April 15 (i.e. if there were wages paid) those returns have been extended to July 15, 2020.<br /><br />The recent COVID tax bill includes outright payments of amounts to each taxpayer if their 2019 earnings (or 2018 if 2019 has not yet been filed) do not exceed certain amounts. <a href="https://www.usatoday.com/story/money/2020/03/26/stimulus-checks-how-much-money-get-government/2921123001/" style="color: #015782; text-decoration-line: none;">SEE THE EXACT RULES FOR THE PAYMENT</a><br /><br />If you have not filed your US return for 2018 and 2019 yet, you may want to file them immediately so the stimulus payment referred to in the previous paragraph will be made to you. If you have not filed for 2018, no payment will be made. If you wait too long, the stimulus might not be available. Note that if your 2019 income is lower than 2018 you may want to file in order to show eligibility.<br /><br />Whether tax income limits for these cash payments apply to your expatriate income after deducting the foreign earned income exclusion or before is not certain at this time<br /><br />For those who file state returns, many states including California have extended the due date your 2019 state tax return to match the July 15, 2020 federal deadline. Many also do not require payment of the taxes due until that date.<div>
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<a href="mailto:ddnelson@gmail.com" style="color: #015782; text-decoration-line: none;" target="_blank">Email our tax CPAs and Attorneys for assistance and with your questions.</a></div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-87421312093809722242020-03-25T09:27:00.000-07:002020-03-25T09:27:38.083-07:00NEW TAX FILING DEADLINES AND RULES - COVID-19 US TAX LAW CHANGES<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #252525; font-family: Arial, Helvetica, sans-serif; font-size: 15px;">Dear Mexico Expat, Clients and Friends</span></h3>
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<a href="https://1.bp.blogspot.com/-TuHQrrpHylw/TXZ6cPj1-uI/AAAAAAAAkY0/4mwEzVDDRM8HWXcyC42arjfGNHhQuECxQCPcBGAYYCw/s1600/irs%2Bstamp.jpg" imageanchor="1" style="clear: right; color: #015782; float: right; margin-bottom: 1em; margin-left: 1em; text-decoration-line: none;"><img border="0" data-original-height="104" data-original-width="127" src="https://1.bp.blogspot.com/-TuHQrrpHylw/TXZ6cPj1-uI/AAAAAAAAkY0/4mwEzVDDRM8HWXcyC42arjfGNHhQuECxQCPcBGAYYCw/s1600/irs%2Bstamp.jpg" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-radius: 0px; border: 1px solid rgb(204, 204, 204); box-shadow: rgba(0, 0, 0, 0.2) 0px 0px 20px; padding: 8px; position: relative;" /></a>Right now, your highest priority is the health of those you love and yourself. But if you have time to read about some non-medical but important matters related to the health crisis, here is a summary of IRS action already taken and federal tax legislation already enacted to ease tax compliance burdens and economic pain caused by COVID-19 (commonly referred to as Coronavirus).</div>
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I’ll be sending you summaries of additional developments as they take place. </div>
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<span style="font-weight: 700;">Filing and payment deadlines deferred.</span> After briefly offering more limited relief, the IRS almost immediately pivoted to a policy that provides the following to all taxpayers—meaning all individuals, trusts, estates, partnerships, associations, companies or corporations regardless of whether or how much they are affected by COVID-19:</div>
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For a taxpayer with a Federal income tax return or a Federal income tax payment due on April 15, 2020, the due date for filing and paying is automatically postponed to July 15, 2020, regardless of the size of the payment owed.</div>
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The taxpayer doesn’t have to file Form 4686 (automatic extensions for individuals) or Form 7004 (certain other automatic extensions) to get the extension.</div>
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The relief is for (A) Federal income tax payments (including tax payments on self-employment income) and Federal income tax returns due on April 15, 2020 for the person’s 2019 tax year, and (B) Federal estimated income tax payments (including tax payments on self-employment income) due on April 15, 2020 for the person’s 2020 tax year.</div>
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No extension is provided for the payment or deposit of any other type of Federal tax (e.g. estate or gift taxes) or the filing of any Federal information return.</div>
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As a result of the return filing and tax payment postponement from April 15, 2020, to July 15, 2020, that period is disregarded in the calculation of any interest, penalty, or addition to tax for failure to file the postponed income tax returns or pay the postponed income taxes. Interest, penalties and additions to tax will begin to accrue again on July 16, 2020.</div>
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<span style="font-weight: 700;">Favorable treatment for COVID-19 payments from Health Savings Accounts</span>. Health savings accounts (HSAs) have both advantages and disadvantages relative to Flexible Spending Accounts when paying for health expenses with untaxed dollars. One disadvantage is that a qualifying HSA may not reimburse an account beneficiary for medical expenses until those expenses exceed the required deductible levels. But IRS has announced that payments from an HSA that are made to test for or treat COVID-19 don’t affect the status of the account as an HSA (and don’t cause a tax for the account holder) even if the HSA deductible hasn’t been met. Vaccinations continue to be treated as preventative measures that can be paid for without regard to the deductible amount.</div>
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<span style="font-weight: 700;">Tax credits and a tax exemption to lessen burden of COVID-19 business mandates. </span>On March 18, President Trump signed into law the Families First Coronavirus Response Act (the Act, <a href="https://www.blogger.com/null" id="Tb06b138a28e049218c3754ebf20f7849" name="Tb06b138a28e049218c3754ebf20f7849" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: 0px 0px; background-repeat: initial; background-size: initial; color: #015782; text-decoration-line: none;">PL 116-127</a>), which eased the compliance burden on businesses. The Act includes the four tax credits and one tax exemption discussed below.</div>
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<em>...Payroll tax credit for required paid sick leave (the payroll sick leave credit).</em> The Emergency Paid Sick Leave Act (EPSLA) division of the Act generally requires private employers with fewer than 500 employees to provide 80 hours of paid sick time to employees who are unable to work for virus-related reasons (with an administrative exemption for less-than-50-employee businesses that the leave mandate puts in jeopardy). The pay is up to $511 per day with a $5,110 overall limit for an employee directly affected by the virus and up to $200 per day with a $2,000 overall limit for an employee that is a caregiver.</div>
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The tax credit corresponding with the EPSLA mandate is a credit against the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax). The credit amount generally tracks the $511/$5,110 and $200/$2,000 per-employee limits described above. The credit can be increased by (1) the amount of certain expenses in connection with a qualified health plan if the expenses are excludible from employee income and (2) the employer’s share of the payroll Medicare hospital tax imposed on any payments required under the EPSLA. Credit amounts earned in excess of the employer’s 6.2% Social Security (OASDI) tax (or in excess of the Railroad Retirement tax) are refundable. The credit is electable and includes provisions that prevent double tax benefits (for example, using the same wages to get the benefit of the credit and of the current law employer credit for paid family and medical leave). The credit applies to wages paid in a period (1) beginning on a date determined by IRS that is no later than April 2, 2020 and (2) ending on December 31, 2020.</div>
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...<em>Income tax sick leave credit for the self-employed (self-employed sick leave credit). </em>The Act provides a refundable income tax credit (including against the taxes on self-employment income and net investment income) for sick leave to a self-employed person by treating the self-employed person both as an employer and an employee for credit purposes. Thus, with some limits, the self-employed person is eligible for a sick leave credit to the extent that an employer would earn the payroll sick leave credit if the self-employed person were an employee.</div>
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Accordingly, the self-employed person can receive an income tax credit with a maximum value of $5,110 or $2,000 per the payroll sick leave credit. However, those amounts are decreased to the extent that the self-employed person has insufficient self-employment income determined under a formula or to the extent that the self-employed person has received paid sick leave from an employer under the Act. The credit applies to a period (1) beginning on a date determined by the IRS that is no later than April 2, 2020 and (2) ending on December 31, 2020. </div>
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...<em>Payroll tax credit for required paid family leave (the payroll family leave credit).</em> The Emergency Family and Medical Leave Expansion Act (EFMLEA) division of the Act requires employers with fewer than 500 employees to provide both paid and unpaid leave (with an administrative exemption for less-than-50-employee businesses that the leave mandate puts in jeopardy). The leave generally is available when an employee must take off to care for the employee’s child under age 18 because of a COVID-19 emergency declared by a federal, state, or local authority that either (1) closes a school or childcare place or (2) makes a childcare provider unavailable. Generally, the first 10 days of leave can be unpaid and then paid leave is required, pegged to the employee’s pay rate and pay hours. However, the paid leave can’t exceed $200 per day and $10,000 in the aggregate per employee.</div>
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The tax credit corresponding with the EFMLEA mandate is a credit against the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax). The credit generally tracks the $200/$10,000 per employee limits described above. The other important rules for the credit, including its effective period, are the same as those described above for the payroll sick leave credit.</div>
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...<em>Income tax family leave credit for the self-employed (self-employed family leave credit).</em> The Act provides to the self-employed a refundable income tax credit (including against the taxes on self-employment income and net investment income) for family leave similar to the self-employed sick leave credit discussed above. Thus, a self-employed person is treated as both an employer and an employee for purposes of the credit and is eligible for the credit to the extent that an employer would earn the payroll family leave credit if the self-employed person were an employee.</div>
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Accordingly, the self-employed person can receive an income tax credit with a maximum value of $10,000 as per the payroll family leave credit. However, under rules similar to those for the self-employed sick leave credit, that amount is decreased to the extent that the self-employed person has insufficient self-employment income determined under a formula or to the extent that the self-employed person has received paid family leave from an employer under the Act. The credit applies to a period (1) beginning on a date determined by IRS that is no later than April 2, 2020 and (2) ending on December 31, 2020. </div>
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...<em>Exemption for employer’s portion of any Social Security (OASDI) payroll tax or railroad retirement tax arising from required payments.</em> Wages paid as required sick leave payments because of EPSLA or as required family leave payments under EFMLEA aren’t considered wages for purposes of the employer’s 6.2% portion of the Social Security (OASDI) payroll tax or for purposes of the Railroad Retirement tax.</div>
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<span style="font-weight: 700;">IRS information site.</span> Ongoing information on the IRS and tax legislation response to COVID- 19 can be found <a href="http://%20https//www.irs.gov/coronavirus%20%E2%80%8B" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: 0px 0px; background-repeat: initial; background-size: initial; color: #145da4; font-size: 1em; font-weight: 700; letter-spacing: 0.01em; text-decoration-line: none;" target="_blank">here</a>.</div>
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I will be pleased to hear from you at any time with questions about the above information or any other matters, related to COVID-19 or not. I wish all of you the very best in a difficult time. Email us at <a href="mailto:ddnelson@gmail.com" style="color: #015782; text-decoration-line: none;" target="_blank">TAX ASSISTANCE BY CPAS AND ATTORNEYS</a> Also visit our website at <a href="http://www.taxmeless.com/" style="color: #015782; text-decoration-line: none;" target="_blank">www.taxmeless.com</a> for a wealth of information. </div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-71259937386653721872020-02-05T14:55:00.002-08:002020-02-05T14:55:21.400-08:00Mexico Corporations - Which are best for your US Income Tax <div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIAdUiCAZYIAqnjUVRthr4qf85gEwQpoPWhb8bX6siaoRpO2fPn3tSBdduuhp_gC8_h8fuvA4I2U91739MTYThlsu03Pom1_zxTEQmU_fLkpyqkX26WWl0kCPhbkpr-fw616hoLO8NHyn5/s1600/cabo+arch.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="144" data-original-width="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIAdUiCAZYIAqnjUVRthr4qf85gEwQpoPWhb8bX6siaoRpO2fPn3tSBdduuhp_gC8_h8fuvA4I2U91739MTYThlsu03Pom1_zxTEQmU_fLkpyqkX26WWl0kCPhbkpr-fw616hoLO8NHyn5/s1600/cabo+arch.jpg" /></a>When you need to form a Mexican Corporation for your business or real estate rental needs, it is very important if you are a US tax filer that you chose the right kind of Mexican corporation. Only one type of Mexican corporation allows you tile an election to which will cause the corporations net taxable income and any Mexico income taxes it pays to flow through to your personal US income tax return. You can take a credit on your US return for the Mexican tax offsetting your US tax on the same income and avoid double taxation. That type of corporation is a <b style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">Sociedad de Responsabilidad Limitada</b><span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;"> (SRL). Depending on the number of owners it will show up on your tax return either as a disregarded entiy or LLC/Partnership.</span><br />
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<span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">You must make the election with the IRS to have the Mexico SRL to be treated as a flow through shortly after it is formed in Mexico. The election form is filed with the IRS. It is much more complex if you try to do it after the SRL is included the first ime in your US return. </span><br />
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<span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">SRLs are very commonly used by US person with Mexico real estate and that own Mexico businesses.</span><br />
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<span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">The other type of Mexico corporation is a </span><b style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">Sociedad Anonima</b><span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;"> or an </span><b style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">S.A. De C.V. </b><span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">If you use this type of corporation the income does not flow through to your personal return and you cannot claim a credit for any taxes it pays. It may also cause you to pay the Section 951a GILTI on nondistribruted net income if its income is in excess of a certain amount. When you distribute the income as dividends you pay taxes again on the same income.</span><br />
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<span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">If you want assistance in forming a Mexico Corporation, and its taxation in Mexico and in the US (and electing flow through status) contact us. Email us at:<a href="mailto:ddnelson@gmail.com" target="_blank"> ddnelson@gmail.com</a> and visit our website at <a href="http://www.taxmeless.com/" target="_blank">www.taxmeless.com </a>for more information. We are a US firm with over 30 years experience in Mexico/US taxation.</span></div>
Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-25676030316433841132020-01-22T19:46:00.000-08:002020-01-22T19:49:47.208-08:00<div dir="ltr" style="text-align: left;" trbidi="on">
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<strong><span style="font-size: 14pt;">Registering to Vote and submitting a ballot is fast, easy, and can be done from anywhere in the world - even Mexico!</span></strong></div>
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<span style="font-family: "times new roman" , serif; font-size: 14pt;">Start by confirming your voter registration with your state. Some states require absentee voters to register annually so you may need to re-register. Go to </span><a data-saferedirecturl="https://www.google.com/url?q=https://www.fvap.gov/&source=gmail&ust=1579836498582000&usg=AFQjCNGt0hhUDmrig19YEJ_hTpMQEuciRA" href="https://www.fvap.gov/" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">FVAP.gov</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> to connect to your state’s voter portal to register to vote, request a ballot, and more. Once you confirm your registration, follow a few simple steps to vote in the 2020 U.S. elections:</span></div>
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<strong><span style="font-size: 14pt;">1. Request Your Ballot: </span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">Most states provide the option to request ballots through their state election portals, which you can easily access via FVAP.gov. <strong> </strong>You can also choose to complete a </span><a data-saferedirecturl="https://www.google.com/url?q=https://www.fvap.gov/uploads/FVAP/Forms/fpca.pdf&source=gmail&ust=1579836498582000&usg=AFQjCNGCp2-3twWQr_YEjUrhGV5ZCKyqcQ" href="https://www.fvap.gov/uploads/FVAP/Forms/fpca.pdf" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">Federal Post Card Application (FPCA)</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;">. The completion of the FPCA allows you to request absentee ballots for all <strong>elections for federal offices (President, U.S. Senate, and U.S. House of Representatives)</strong> including primaries and special elections during the calendar year in which it is submitted. </span><a data-saferedirecturl="https://www.google.com/url?q=https://www.fvap.gov/uploads/FVAP/Forms/fpca.pdf&source=gmail&ust=1579836498582000&usg=AFQjCNGCp2-3twWQr_YEjUrhGV5ZCKyqcQ" href="https://www.fvap.gov/uploads/FVAP/Forms/fpca.pdf" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">FPCA</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> forms that are correctly filled out and <strong>include a signature and date</strong> are accepted by all local election officials in every U.S. state and territory. FVAP’s easy </span><a data-saferedirecturl="https://www.google.com/url?q=https://www.fvap.gov/fpca-privacy-notice&source=gmail&ust=1579836498582000&usg=AFQjCNERJApNwxX975yAmERi2bV1-07KpQ" href="https://www.fvap.gov/fpca-privacy-notice" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">online assistant</span></a><strong><span style="font-size: 14pt;"> </span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">can assist you with completing the FPCA. Whether you request your ballot through your state’s portal or the FPCA, we encourage you to select the option for receiving your ballot electronically (by email, internet download, or fax) when available. This is the fastest way for you to get your ballot and ensures you have it in time to return a completed form before your state’s deadline. </span></div>
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<strong><span style="font-size: 14pt;">2. Receive and Complete Your Ballot: </span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">States are required to send out ballots 45 days before a regular election for federal office and states generally send out ballots at least 30 days before primary elections. Most states allow you to confirm your </span><a data-saferedirecturl="https://www.google.com/url?q=http://www.fvap.gov/links&source=gmail&ust=1579836498582000&usg=AFQjCNHTgWPyqS-2gOA-td_lG99i_QeJ3g" href="http://www.fvap.gov/links" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">ballot delivery online</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;">.</span></div>
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<strong><span style="font-size: 14pt;">3. Return Your Completed, Signed Ballot: </span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">Some states allow you to return your completed ballot electronically and others do not. If your state requires you to return paper voting forms or ballots to local election officials by mail, you can do so through international mail, professional courier service, or through U.S. Consulate General Tijuana’s diplomatic pouch. The diplomatic pouch provides free mail service from embassies and consulates to a U.S. sorting facility. You will need to place your ballots in postage paid return envelopes or in envelopes bearing sufficient U.S. postage, in order for them to be delivered to the proper local election authorities. If using the diplomatic pouch, ballots can be dropped off to the American Citizen Services section by October 20, 2020, during normal operating hours between 7:30 am and 4:15 pm. Please note that all visitors to the Consulate are subject to security screening and you will not be permitted to bring electronic devices, including cell phones, inside the facility. Please note that it can take up to four weeks for mail to reach its destination if sent by an embassy or consulate via diplomatic pouch. All overseas U.S. citizens are advised to submit their forms and ballots accordingly.</span></div>
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<strong><span style="font-size: 14pt;">Researching the Candidates and Issues: Online Resources</span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">. Go to the </span><a data-saferedirecturl="https://www.google.com/url?q=http://www.fvap.gov/links&source=gmail&ust=1579836498582000&usg=AFQjCNHTgWPyqS-2gOA-td_lG99i_QeJ3g" href="http://www.fvap.gov/links" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">FVAP links page</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> for helpful resources to aid your research of candidates and issues. Non-partisan information about candidates, their voting records, and their positions on issues are widely available and easy to obtain on-line. You can also read national and hometown newspapers on-line, or search the internet to locate articles and information. For information about election dates and deadlines, subscribe to FVAP's Voting Alerts (</span><a href="mailto:vote@fvap.gov" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">vote@fvap.gov</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;">). FVAP also shares Voting Alerts via </span><a data-saferedirecturl="https://www.google.com/url?q=http://www.facebook.com/DoDFVAP&source=gmail&ust=1579836498582000&usg=AFQjCNGb23g3ou22WJhn0-NQ6ougmWbRcA" href="http://www.facebook.com/DoDFVAP" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">Facebook</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> (@DODFVAP), </span><a data-saferedirecturl="https://www.google.com/url?q=http://twitter.com/FVAP&source=gmail&ust=1579836498582000&usg=AFQjCNHnWS8Lw3pZnlsM-8lrMLFN5ViOlw" href="http://twitter.com/FVAP" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">Twitter</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> (@FVAP), and </span><a data-saferedirecturl="https://www.google.com/url?q=https://www.instagram.com/FVAPgov/&source=gmail&ust=1579836498583000&usg=AFQjCNHJDN5TnRWydzbP6EVfjw1UMQSpiQ" href="https://www.instagram.com/FVAPgov/" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">Instagram</span></a><span style="font-family: "times new roman" , serif; font-size: 14pt;"> (@fvapgov).</span></div>
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<strong><span style="font-size: 14pt;">Learn more at the Federal Voting Assistance Program's (FVAP) website, </span></strong><a data-saferedirecturl="https://www.google.com/url?q=https://www.fvap.gov/&source=gmail&ust=1579836498583000&usg=AFQjCNGWERwotRsjXwGiq9d8EDcjQM3a7A" href="https://www.fvap.gov/" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">FVAP.gov</span></a><strong><span style="font-size: 14pt;">. </span></strong><span style="font-family: "times new roman" , serif; font-size: 14pt;">If you have any questions about registering to vote overseas, please contact U.S. Consulate General Tijuana at </span><span style="color: #c00000; font-family: "times new roman" , serif; font-size: 14pt;"><a href="mailto:votetijuana@state.gov?subject=U.S.%20Voter%20Assistance" style="color: #1155cc; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 13.3333px;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">VoteTijuana@state.gov</span></a>. </span></div>
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<a href="https://www.blogger.com/null" name="m_-2562790499600267020__Hlk30494361"></a><strong><span style="border: 1pt none; color: black; font-family: "times new roman" , serif; font-size: 14pt; padding: 0in;">Assistance</span></strong><span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">:</span></div>
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<a data-saferedirecturl="https://www.google.com/url?q=https://mx.usembassy.gov/embassy-consulates/&source=gmail&ust=1579836498583000&usg=AFQjCNHbyXuAoaTxsfGaZrlSwJfCbmks8w" href="https://mx.usembassy.gov/embassy-consulates/" style="color: #1155cc;" target="_blank"><span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">U.S. Consulate General, Tijuana</span></a></div>
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<span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">Within Mexico: 01-664-977-2000</span></div>
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<span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">From the United States: 1-301-985-8665</span></div>
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<a href="mailto:votetijuana@state.gov?subject=U.S.%20Voter%20Assistance" style="color: #1155cc;" target="_blank"><span style="font-family: "times new roman" , serif; font-size: 14pt;">VoteTijuana@state.gov</span></a></div>
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<span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">State Department – Consular Affairs</span></div>
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<span style="color: black; font-family: "times new roman" , serif; font-size: 14pt;">888-407-4747 or 202-501-4444</span></div>
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<a href="https://www.blogger.com/null" name="m_-2562790499600267020__Hlk30493810"></a><a data-saferedirecturl="https://www.google.com/url?q=https://travel.state.gov/content/travel/en/legal/Judicial-Assistance-Country-Information/Mexico.html&source=gmail&ust=1579836498583000&usg=AFQjCNHhNKAM8xmRUjfBwmmjpx-KaKCL0g" href="https://travel.state.gov/content/travel/en/legal/Judicial-Assistance-Country-Information/Mexico.html" style="color: #1155cc;" target="_blank"><span style="border: 1pt none; font-family: "times new roman" , serif; font-size: 14pt; padding: 0in;">Mexico Country Information</span></a></div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-44896600545047140202020-01-11T19:19:00.000-08:002020-01-12T04:18:38.160-08:00Skype or Telephone Consultations Concerning Your US Expat and International Taxes By an Attorney and CPAs available abroad<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOZesYmcGjrIMK7yD18wxjblUzs6yvELFqq6avnm5IAAcMETUtjtB2sj0inwSNYIiwtoFIWuh_pVOROXJNqgRPI1dGQLfRjwpHnft0z1bpe-Se-6VdKyOctctSO41tIXMKIP22TCOlnTFc/s1600/Uncle+Sam+CPA2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="515" data-original-width="379" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOZesYmcGjrIMK7yD18wxjblUzs6yvELFqq6avnm5IAAcMETUtjtB2sj0inwSNYIiwtoFIWuh_pVOROXJNqgRPI1dGQLfRjwpHnft0z1bpe-Se-6VdKyOctctSO41tIXMKIP22TCOlnTFc/s200/Uncle+Sam+CPA2.jpg" width="146" /></a><b style="background-color: white; text-align: justify;"><span style="font-family: "arial"; font-size: medium;"> </span></b><span style="background-color: white; text-align: justify;"></span><span style="background-color: white; font-family: "arial"; text-align: justify;">If you have specific tax questions on: </span><br />
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<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">US Expatriate taxation</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">US Nonresident Taxation</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">US International Taxation</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">Doing business in the US as a nonresident</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">Reducing your US taxes when living abroad.</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">IRS or State Tax Collections Problems</span></span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"><span style="background-color: white;">Coordinating your Mexico taxes with your US taxes</span></span></li>
</ul>
<span style="background-color: white; font-family: "arial"; text-align: justify;"><br /></span>
<span style="background-color: white; font-family: "arial"; text-align: justify;">You can discuss your situation with a <i>US expatriate international tax expert Attorney ,</i> with the protection of <i>Attorney-Client privilege by requesting a</i> "Mini Consultation." A Mini Consultation costs $300US for up to 30 minutes of Mr. Don Nelson's professional legal tax advice over the phone, or by skype or email. No need to visit his office.</span><br />
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<span style="background-color: white; font-family: "arial"; text-align: justify;"> If you send us an outline of your factual situation and questions in advance, he can prepare in advance for the consultation which makes the consultation extremely effective and efficient and usually resolves all of your questions within the time allowed. Over 1,000 expat taxpayers and nonresidents located everywhere in the world have used "Mini Consultations" to solve their tax problems and issues with great success. Our US Phone is (949) 480-1235. US Fax (949) 606-9627 or you can talk on my skype at <i>dondnelson (skype address) . </i>Email don at : <a href="mailto:ddnelson@gmail.com" target="_blank">US International Tax Expert Attorney</a>. Consultations are also available on WhatsApp. </span><br />
<span style="background-color: white; font-family: "arial"; text-align: justify;"><br /></span>
<span style="background-color: white; font-family: "arial"; text-align: justify;">Payment can be made by credit card, echeck, paypal, or wire transfer. If your questions or problems are URGENT let us know and we can often schedule your mini consultation on the same day. <a href="https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxleHBhdHRheGF0dG9ybmV5Y3BhfGd4OjZkZTQ4ZTE0MzQ2ZDE0MjE" target="_blank">DOWNLOAD A MINI CONSULTATION ENGAGEMENT AGREEMENT TO START NOW.</a></span><br />
<span style="background-color: white; font-family: "arial"; text-align: justify;"><br /></span>
<span style="background-color: white; font-family: "arial"; text-align: justify;">Don D. Nelson, International Tax Attorney at Law</span><br />
<span style="background-color: white; font-family: "arial"; text-align: justify;">Partner Kauffman Nelson LLP , Certified Public Accountants</span><br />
<span style="background-color: white; font-family: "arial"; text-align: justify;">Huntington Beach, California, USA</span></div>
Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-11726391338612650552020-01-07T12:49:00.000-08:002020-01-07T12:56:21.610-08:00SAT is Verifying Compliance with Tax Requirements on Rental Income.<div dir="ltr" style="text-align: left;" trbidi="on">
<br /><br /><img height="185" src="https://lh6.googleusercontent.com/Hsx_yqChRIoaMt3kGpN6vQIgeAsKyls7cgI0jzxwUEKci00xvdI2vf3d8LTYBys5jPUFrwsGj1psI4NobG8yc457JdsI7w36yDgY7aPYGIJcIAidG_4O7Q2GH65BVxD-eZG1g6L3OzLZKX3N4A" width="200" />SAT, the Secretary of Attention to Taxpayers, the equivalent of the US – IRS, Internal Revenue Service, and Canada’s CRA Canadian Revenue Agency, is reviewing social media sites, including Air BnB and VRBO, to determine who is offering property for rent and who is receiving unreported income.<br /><br /><br /> Evasion of tax is a criminal offense. Articles 150 to 178 of the Fiscal Code provide for imprisonment of up to six years for evasion of taxes. Not only is it a criminal offense but the taxpayer must pay the past due taxes and very substantial interest penalties which amount to 1.3% per month, compounded. Unless taxes and accrued penalties are paid in a timely manner the property can be seized and put up for auction. Additionally, in a reform of Article 118 of the Fiscal Code, no landlord may demand payment of past due rent in the courts without submitting proof of tax compliance.<br /><br /><br />The Mexican government has decreed that income generated from the rent of a Mexican property is due and payable in Mexico, regardless of where the income is received. And it is getting very serious in its efforts to collect this tax and to punish those who evade payment, whether through intention or ignorance. SAT has determined ignorance is not a legitimate excuse. This growing issue and omission now represents a glaring 1% of Mexico’s Gross Domestic Product. Mexican authorities are anxious to correct this shortfall. <br /><br /><br />There are programs in place for both Residents in Mexico and Non-Residents of Mexico, to declare and pay the lawful taxes which include both the tax on income (ISR) and, in the case of a unfurnished rental, the 16% added value tax (IVA). Realistically there is no way to legally avoid declaring and payment of these taxes. To continue to evade this responsibility will put the affected property at risk. <br /><br /><br />And the good news, due to Mexico’s tax treaties with 32 countries, double taxation is never an issue.<br /><br />For details on how to clean up your tax obligation and proceed, please contact <a href="mailto:rentaltaxmexico@settlement-co.com" target="_blank">rentaltaxmexico@settlement-co.com </a>Read more about the Mexican income and iva taxes on rental income at <a href="http://www.rentaltaxmexico.com/">www.rentaltaxmexico.com </a> If you wish to discuss your situation and how to resolve it with a US Attorney with expertise in Mexico taxes <a href="mailto:ddnelson@gmail.com" target="_blank">EMAIL US TAX ATTORNEY</a></div>
Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-2898409959730211542019-12-19T09:05:00.000-08:002019-12-19T13:02:20.194-08:002019 Year End Tax Planning for US Expatriate Taxpayers in Mexico<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://1.bp.blogspot.com/-LWHJIAF6By0/S9BYlqoOLXI/AAAAAAAAkY4/gaWdoGmaXAoJGiSdyM1TlvztEPaBdaEfACPcBGAYYCw/s1600/irs%2Blogo5.jpg" imageanchor="1" style="clear: right; color: #015782; float: right; margin-bottom: 1em; margin-left: 1em; text-decoration-line: none;"><img border="0" data-original-height="620" data-original-width="750" height="165" src="https://1.bp.blogspot.com/-LWHJIAF6By0/S9BYlqoOLXI/AAAAAAAAkY4/gaWdoGmaXAoJGiSdyM1TlvztEPaBdaEfACPcBGAYYCw/s200/irs%2Blogo5.jpg" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-radius: 0px; border: 1px solid rgb(204, 204, 204); box-shadow: rgba(0, 0, 0, 0.2) 0px 0px 20px; padding: 8px; position: relative;" width="200" /></a><a href="https://www.blogger.com/"><span style="color: #015782;"><span id="goog_503344730"></span></span></a><a href="https://drive.google.com/file/d/1VjyYt4ym5Pcd36EyBYaRtuqVYaT4fV83/view?usp=sharing" target="_blank"><span style="color: #015782;">Our year end 2019 Expatriate Tax Planning Letter can be read and downloaded here (pdf file).</span><span style="color: #015782;"><span id="goog_503344731"></span></span> </a>Read it to learn of tax law changes for 2019 and possible planning steps you can take before year end to save you money.<br />
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If you want to get started early on your 2019 expatriate tax return you can download our 2019 <a href="https://drive.google.com/file/d/1Vv7WzXCHd2R6b-AUOyepp3qxqDa4m-66/view?usp=sharing" target="_blank"><span style="color: #015782;">Expatriate Tax Questionnaire HERE.</span> </a>(MS word file ) After you fill it out send it to us for a fee quote and fast preparation.<br />
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<a href="mailto:ddnelson@gmail.com" target="_blank">If you have US expatriate, international or US nonresident tax questions email us by clicking HERE</a><br />
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Our firm CPAs and Attorney have been assisting Americans with their US taxes in Mexico for over 25 years. </div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-86966950714679285602019-12-18T09:04:00.003-08:002021-01-03T08:19:20.976-08:00SAT goes after landlords for not declaring rental income<div dir="ltr" style="text-align: left;" trbidi="on">
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By John Glabb CIPS - The Settlement Company </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq6ftDycsedTatI48UCrEF1tGV76pNygUWwKCu9SpJ_6Gmhd8-3GGNpxLtLiUsCHehrNiL9EZBBQowiTsYWJLBg05cPQvMGR2GHVVD90aVEk01dniKXUxVpZg6dcYj5JcyhdfC4sPnA8Nh/s1600/Mex+prop+8.jpg" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq6ftDycsedTatI48UCrEF1tGV76pNygUWwKCu9SpJ_6Gmhd8-3GGNpxLtLiUsCHehrNiL9EZBBQowiTsYWJLBg05cPQvMGR2GHVVD90aVEk01dniKXUxVpZg6dcYj5JcyhdfC4sPnA8Nh/s320/Mex+prop+8.jpg" width="320" /></a><span face="Arial, sans-serif">SAT will begin inspecting landlords to ensure that they meet their tax obligations </span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">There has recently been a crackdown in tourist beach communities, many homeowners that use their property as vacation rentals have received notice to ensure they are registered as rentals and claim the income they are receiving. Most rentals are listed on social media or Airbnb, making it easy for the government officials to find properties being used as a rental. It is not unheard of for authorities to base taxes and penalties on a perceived rental income by using the area’s occupancy rate, which will be much more expensive for you in the end.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">According to the Ministry of Finance and Public Credit (SHCP), the evasion of ISR by lease represents 0.1% of GDP. In addition, according to a study by the University of the Americas Puebla, in 2016 the rate of evasion of natural persons who obtain income from leasing was 73.5%. To combat this, the Treasury implemented a reform that has already entered into force to inspect landlords.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">Landlords must verify that they have been issuing CFDI for income from rentals. When a tenant does not pay the rent and a lease trial is reached, the judge will ask the landlord to show you the CFDIs that protect your income. If you do not prove them, the judge must notify the SAT no later than five days after the deadline.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">The reform will change Article 118 of the Law of the ISR to be as follows:<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">“In the case of real estate lease judgments in which the lessee is ordered to pay the overdue income, the judicial authority shall require the creditor to verify that he issued the tax receipts referred to in this section. In the event that the creditor does not prove to have Once these vouchers have been issued, the judicial authority must inform the Tax Administration Service of the omission mentioned within a maximum period of five days from the expiration of the period granted by the judicial authority to the creditor to comply with the requirement.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">According to some specialists, the proposal could achieve more revenue and an increase in the rental price. According to Arturo Rosales, director of finance at Homie, prices will increase due to legal processes.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">For years foreign property owners have not paid their rental income taxes. <b>Vacation property income seemed to fall under the radar of taxable income in Mexico, until recently.<u></u><u></u></b></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">Whether you are investing in Mexico, doing business in Mexico or retiring in Mexico, you need to learn about the Mexican tax system. Consult a tax attorney in Mexico when you make an investment purchase or rent out your home.<u></u><u></u></span></div>
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<span face="Arial, sans-serif" style="font-size: 16pt;">The Federal Government <strong>expects foreign owners</strong> to follow the Mexican tax laws that come with owning property investments in Mexico. Any rental property in Mexico, whether it is just a small suite or a luxury condominium, whether you rent it part-time and live there part-time or you rent it full time, these tax laws apply. Many foreign homeowners in Mexico are not complying with the laws, whether they choose not to, because they think anything goes in Mexico, or they are not aware of the Mexican tax laws and tax system. The reality is you can not escape taxes, no matter where you live. <strong>Avoiding these laws will put their homes at risk</strong>.<u></u><u></u></span></div>
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<i><span face=""&quot", serif" style="text-transform: uppercase;"><span style="color: red;">SOME FOREIGN OWNERS ASSUME THEY DO NOT NEED TO PAY TAXES ON THE PROPERTY BECAUSE THE INCOME FOR THE RENT IS PAID TO THEIR HOME COUNTRY BANK ACCOUNT, THIS IS NOT THE CASE. ANY RENTAL PROPERTY IN MEXICO IS SUBJECT TO TAX IN MEXICO, NO MATTER WHICH COUNTRY OR BANK ACCOUNT THE RENT IS PAID TO.</span></span></i></h4>
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<span face=""&quot", serif" style="color: #002060; font-size: 16pt; font-weight: normal;">Property owners that do not comply with these laws may lose their rights as the property owner, face possible jail time, fines, deportation from Mexico and forced sale of the property.</span><span face=""&quot", serif" style="color: #002060; font-size: 16pt;"><u></u><u></u></span></h3>
<div class="MsoNormal" style="box-sizing: border-box; color: #222222;"><span face="Arial, sans-serif"><span style="font-size: 18.6667px;"> <a href="mailto:ddnelson@gmail.com" target="_blank">Email US with questions and to learn more</a></span></span></div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-85450317792779365672019-12-17T13:45:00.000-08:002019-12-17T13:45:06.756-08:00Consider Forming a Mexican Sociedad de Responsabilidad Limitada (SRL) when Incorporation Your Business or Rental in Mexico<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">When you decide to incorporate your business or rental property in Mexico and you are a US taxpayer it is wise to consider making your Mexican corporation a <span style="background-color: #f3f2f2; font-size: 16px;">Sociedad de Responsabilidad Limitada (S. de R.L.</span><span style="background-color: #f3f2f2; font-size: 16px;"> ). rather than the more common </span></span><span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">Sociedad Anonima </span><b style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;">de</b><span style="background-color: white; color: #222222; font-family: Roboto, arial, sans-serif; font-size: 16px;"> Capital Variable, (SA de C.V.)</span><span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">. One offers great advantages on your US tax return due to the "Check the Box" regulations (IRS Form 8832). Most Mexican attorneys and accountants are not familar with the advantages of a S. de R.L. and recommend the other type of corporation.</span></span><br />
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<span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">Advantages of using an S. de R.L :</span></span><br />
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<span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">1. Allows losses and profits of the corporation to flow through to your personal US return (avoids double taxation)</span></span><br />
<span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">2. Allows you to claim a foreign tax credit on your US return for all Mexican income taxes paid by your corporation in Mexico.</span></span><br />
<span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">3. Avoids the new US GILTI tax which causes owners of Controlled Foreign Corporations to have to pay taxes on part of the corporations profits even if they are not distributed to you.</span></span><br />
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<span style="background-color: #f3f2f2; color: #222222; font-size: 16px;"><span style="font-family: Arial, Helvetica, sans-serif;">We can help you structure your Mexican business or real estate in the optimum manner for your US tax return and to save taxes. Please email us with your questions or to set up a planning session. We can also then do the return. <a href="mailto:ddnelson@gmail.com" target="_blank">EMAIL US</a> We have been assisting US Gringos in Mexico with their US tax returns for over 20 years.</span></span><br />
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-59886976796967604722019-08-31T10:02:00.001-07:002019-08-31T10:02:06.106-07:00Gringos - Who Will Inherit your Property In Mexico<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU3tQL-iMtv5SMh2UrN-nFuajbP7NYIfALXHH2ijlVCmHJGPPUdOjfEYhvEwrlAVo2VQBTS5SC6qKi7jzQVeT5Wmx6_w60AjxWSDQwPMQ0enNcnjBGuYfmrf_BQn5tukKnvpEWHB0d_sYT/s1600/Mexico+day+of+dead.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="321" data-original-width="157" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU3tQL-iMtv5SMh2UrN-nFuajbP7NYIfALXHH2ijlVCmHJGPPUdOjfEYhvEwrlAVo2VQBTS5SC6qKi7jzQVeT5Wmx6_w60AjxWSDQwPMQ0enNcnjBGuYfmrf_BQn5tukKnvpEWHB0d_sYT/s200/Mexico+day+of+dead.jpg" width="97" /></a>If you as a nonresident American or Canadian have property in Mexico, and you pass on, it is important you take steps to make certain your Mexico property goes to those you wish. If you fail to make a Mexican Will or hope to use your US will, it will be time consuming and expensive for your heirs. You need a Mexican will to pass on property to your heirs with efficiency and low cost. To learn more<a href="https://mexlaw.ca/will-inherit-property-mexico/" target="_blank"> READ THIS</a><br />
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If you are living in Mexico, and you have property in the USA, you definitely need a US will and very likely need a US living trust to avoid probate (time consuming and expensive) and keep your estate private. We can help you with your US estate planning and the documents required. Email us at <a href="mailto:ddnelson@gmail.com">ddnelson@gmail.com</a> Get the combined expertise of a US CPA firm and a US attorney</div>
Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-74408578591434668472019-06-08T12:56:00.000-07:002019-08-10T10:37:05.558-07:00PAY YOUR MEXICO TAX ON YOUR RENTAL INCOME OR THE PENALTIES MAY CAUSE YOUR FINANCIAL RUIN<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #073763; font-family: "arial";"><span style="white-space: pre-wrap;">An actual true story but the names and places have been changed to protect the guilty.</span></span></div>
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> out of the </span><span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">year on a weekly or monthly basis to tourists. Though they report their</span><br />
<span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;"> rental income and </span><span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">expenses on their US tax return, they have never paid any</span><br />
<span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;"> taxes on that rental income to </span><span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">the Mexican tax authorities. Their neighbors </span><br />
<span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">have told them not to worry, since no one ever </span><span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">pays taxes on vacation rental </span><br />
<span style="color: #073763; font-family: "arial"; font-size: 12pt; white-space: pre;">income in Mexico and probably do not have to. </span></div>
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<span style="color: #073763; font-family: "arial"; font-size: 12pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Is this actually true?</span><span style="color: #073763; font-family: "arial"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> No! Definitely not! Bill and his wife must pay taxes on</span><br />
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre;">What kind of taxes should they be paying and how much?.</span><span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> They must pay</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> the ISR tax </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">a type of income tax, in the amount of 25% of the gross rents and, </span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">if the unit is furnished, </span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUPoTLuD2RInO9UDu8AAfbx3vZjuBe0Uwh2dnyVj4uWBkuumVAutf-68z1dra1H2y5dIO5vs7144b1wTKrfpFErzoNrreaRJDeHtwBxKImP5yQcAguIk_b84C_AQbK9MuqRPrNo03t0gmM/s1600/tropical+beach+two.jpg" imageanchor="1" style="clear: right; display: inline !important; margin-bottom: 1em; margin-left: 1em;"><span style="color: #073763; font-family: arial; font-size: 12pt; text-decoration-line: none; white-space: pre;">a 16% Value Added Tax (IVA).</span></a><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"><br /></span></div>
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;">An important point The ISR TAX they pay can become a tax credit in the US, </span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;">so double </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">taxation is avoided. The 16% IVA tax is generally paid by the tenant</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> and is simply declared </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">by the landlord.</span></div>
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre;">What are the penalties, interest, etc. they might incur?</span><span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> The penalty for not</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> being enrolled </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">as a taxpayer is 2,740. to 8,230 pesos. The penalty for not making</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> declarations as required </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">range from 1,100. pesos to 13,720. pesos per month in </span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">addition to interest for not paying on </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">time and as required is 1.13% per month.</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"><br /></span></div>
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre;">Are there any other possible legal consequences for failing to pay taxes</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 700; text-decoration: none; vertical-align: baseline; white-space: pre;">on rental</span><span style="color: #073763; font-family: "arial"; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre;">income from their condominium? </span><span style="color: #073763; font-family: "arial"; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;">If the tax authorities have not</span><br />
<span style="color: #073763; font-family: "arial"; font-size: 12pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre;"> discovered the illegal </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">rental income and notified the landlords, back interest</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> and penalties may be waived.</span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">It is important, however, to begin declaring and</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> paying prior to discovery.</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"><br /></span></div>
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<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;">If you want to pay the taxes Mexico imposes on rental income we can help.</span><br />
<span style="background-color: transparent; color: #073763; font-family: "arial"; font-size: 12pt; font-style: normal; font-variant: normal; font-weight: 400; text-decoration: none; vertical-align: baseline; white-space: pre;"> Contact us </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">at </span><a href="mailto:taxmeless@gmail.com" style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;" target="_blank">taxmeless@gmail.com</a><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> We are US attorneys and CPAs and</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> can refer you to a firm i</span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">n Mexico that can help with your Mexican taxes and</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> we can help with your US tax return on </span><span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;">that income. Visit our website</span><br />
<span style="color: #073763; font-family: arial; font-size: 12pt; white-space: pre;"> at <a href="http://www.taxmeless.com/">www.taxmeless.com</a> for a a lot of useful information. </span><br />
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-34140259265381446742019-05-11T02:13:00.004-07:002021-01-03T08:20:20.294-08:00TAX ON RENTAL INCOME: PAYING IT and BEING LEGAL IN MEXICO<div dir="ltr" style="text-align: left;" trbidi="on">
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If you need help with your US taxes on rental income, or your other Mexico income email us at <a href="mailto:taxmeless@gmail.com">taxmeless@gmail.com</a> or visit our website at <a href="http://www.taxmeless.com./">www.taxmeless.com.</a> We are CPAs and attorney with over 30 years experience with Americans living in Mexico and their taxes.<br />
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<strong><span style="font-size: 12pt;">TEMPORARY VISA REQUIRED? </span></strong><span style="font-size: 12pt;">I read an article on the internet about your services. We have spoken to an accountant in PV about paying taxes on our rental income. One accountant has told me I need to get my temp visa. This seems like a hassle when I am using the condo only a short time each year. What is your take on this?</span></div>
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<span style="font-size: 12pt;"> Ronnie from Puerto Vallarta</span></div>
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<span style="font-size: 12pt;">Hi Ronnie: <em>Thanks for your email. Per Articles 158 and 159 of the Tax Code, a visa, other than a tourist visa when you visit Mexico, is NOT necessary. As a non-resident you may rent your property and pay taxes in compliance with Mexican law. Additionally, due to treaties, there is no double taxation and expenses of your property can be deducted in your country of residence</em></span></div>
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<strong><span style="font-size: 12pt;">IS RENTING MEXICAN PROPERTY PROHIBITED? </span></strong><span style="font-size: 12pt;">I have been told that the standard bank trust wording for foreign individuals does not permit the rental of residential property at all. How can you offer to pay taxes on income on a prohibited activity?</span></div>
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<span style="font-size: 12pt;"> Jim from Playa del Carmen</span></div>
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<span style="font-size: 12pt;">Hi Jim. <em>The foreign investment law specifically permits the beneficiary (foreigner) to rent, sell, modify their properties and to collect the profits therefrom. Many trusts state that the bank must pay the taxes but we know that will not happen. It has been our experience that if the foreigner pays his/her taxes on rental income and has the receipts to prove it there is absolutely no quarrel with Mexican officials.</em> </span></div>
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<strong><span style="font-size: 12pt;">OUR PROPERTY TITLE IS IN AN LLC. HOW CAN WE PAY TAXES ON THE INCOME?</span></strong></div>
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<span style="font-size: 12pt;">Marilyn from <em>Cozumel</em></span></div>
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<em><span style="font-size: 12pt;">Hi Marilyn. Thanks for your question! We will need to have your documents translated and authorizations prepared in the name of the LLC and signed by the legal representative. With this we can pay your taxes and provide you with receipts which will be accepted by the tax authorities in your country of residence.</span></em></div>
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<strong><span style="font-size: 12pt;">IS THE FIDEICOMISO THE PROPERTY DEED? </span></strong></div>
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<span style="font-size: 12pt;"> June from Michigan with property in Ixtapa.</span></div>
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<em><span style="font-size: 12pt;">Yes, the Fideicomiso to hold property in the restricted zone of Mexico is both a contract with the Mexican bank to hold your title as trustee, and also is the deed to your rights in the property.</span></em></div>
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<strong><span style="font-size: 12pt;">WE HAVE HEARD THAT OUR PROPERTY CAN BE SEIZED BY THE GOVERNMENT IF TAXES ARE NOT PAID MONTHLY. IS THIS TRUE?</span></strong><span style="font-size: 12pt;"> John from Puerto Penasco</span></div>
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<em><span style="font-size: 12pt;">Yes. Definitely failure to pay taxes on income is a violation of the Mexican law and property can be attached and sold as payment for past due taxes after a procedure similar to that used by the US and Canada tax authorities. To date the Mexican tax authorities have not aggressively pursued violators but this is changing as they have access to internet and rental promotion programs.</span></em></div>
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<strong><span style="font-size: 12pt;">PENALTIES FOR NOT FILING, FOR NON-PAYMENT</span></strong><span style="font-size: 12pt;">: <em>The penalty for not being enrolled as a taxpayer is 2,740. To 8,230 mxn. The penalty for not making declarations as required range from 1,100. To 13,720. Mxn per month in addition to interest at the rate of 1.13% per month on the amount owed. These penalties are being adjusted upward to compensate for exchange rates, etc.</em></span></div>
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<strong><em><span style="font-size: 14pt;">Mexico has tax treaties with 32 countries, no double taxation!</span></em></strong></div>
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<strong><span style="font-size: 12pt;">PAYING TAX ON YOUR RENTAL INCOME FROM MEXICAN PROPERTIES IS A MUST, WHETHER YOU LIVE IN MEXICO OR NOT. GET LEGAL and AVOID THE CONSEQUENCES OF TAX EVASION!</span></strong></div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-36751982950246361032019-02-05T13:35:00.000-08:002019-02-05T13:35:38.259-08:00US Tax Consultations Now Available in Mexico by US Tax Attorney re; real estate, business, investments, tax returns<div dir="ltr" style="text-align: left;" trbidi="on">
<u style="background-color: white; text-align: justify;"><b><span style="font-family: "arial"; font-size: medium;">A "</span></b></u><span style="background-color: white; font-family: "arial"; text-align: justify;"><u><b><span style="font-size: medium;">MINI TAX CONSULTATION" IS NOW AVAILABLE with a US Attorney by Phone or Skype</span></b></u></span><b style="background-color: white; text-align: justify;"><span style="font-family: "arial"; font-size: medium;">: </span></b><span style="background-color: white; text-align: justify;"></span><span style="background-color: white; font-family: "arial"; text-align: justify;">If you have specific tax questions on your personal situation and need to discuss it with an <i>US expatriate international tax expert,</i> with the protection of <i>Attorney-Client privilege</i>, you can request a "Mini Consultation." "Mini Consultation" costs a minimum of $300 US for up to 30 minutes of Mr. Nelson's professional legal tax advice over the phone, skype or by email from any where in the world. </span><br />
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<span style="background-color: white; font-family: "arial"; text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuT9q_JQQN2LSPXJUGcny1UpQkEWTH4Bcwq6TqBPIQjaPUoDxhSM4dT90jO1JHeacK3wYU21-VuPb4e9lkyguRJggzLuv017lCu-h7HiqqifWgycQkQSnnzqEPjirgoKUxr-JIrWDmZtk/s1600/handcuffs+and+tax+forms.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="190" data-original-width="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuT9q_JQQN2LSPXJUGcny1UpQkEWTH4Bcwq6TqBPIQjaPUoDxhSM4dT90jO1JHeacK3wYU21-VuPb4e9lkyguRJggzLuv017lCu-h7HiqqifWgycQkQSnnzqEPjirgoKUxr-JIrWDmZtk/s1600/handcuffs+and+tax+forms.jpg" /></a></span></div>
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<span style="background-color: white; font-family: "arial"; text-align: justify;"> No need to visit his office. If you send us an outline of your situation, facts and questions in advance, we prepare in advance and this time is extremely productive and usually resolves all of your questions within the time allowed. Over 900 U.S. expat taxpayers located everywhere in the world have used "Mini Consultations" to resolve their tax problems and issues. US Phone (949) 480-1235. US Fax (949) 606-9627 or we can talk on my skype address <i>dondnelson. </i><a href="mailto:donnelsonattycpa@yahoo.com" title="Mini Consultation on US Expatriate Taxation">Email:ddnelson@gmail.com</a> Payment can easily be made by credit card, or paypal, or direct bank transfer. If your questions or problems are URGENT let us know and we can often schedule it on the same day. <a href="http://www.expatattorneycpa.com/id82.html" target="_blank" title="Resolve your Expat Tax Questions with a Mini Consult">Learn More About How your Mini Consultation Works</a></span><br />
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Don Nelson, Attorney at Law has ever 30 years experience with US expatriate, international and nonresident taxation and representing taxpayers before the IRS. He is also a partner in Kauffman Nelson LLP Certified Public Accountants. <a href="http://www.expatattorneycpa.com/id82.html" target="_blank">Read more about his background and experience.</a><br />
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<a href="http://www.taxmeless.com/">www.TaxMeLess.com</a></div>
Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0tag:blogger.com,1999:blog-1083219480069739808.post-59542183071002202952019-01-28T20:59:00.000-08:002019-05-15T20:59:17.816-07:002018 FAST US TAX FACTS FOR AMERICAN WORKING AND LIVING IN MEXICO- EXPATRIATES AND GREEN CARD HOLDERS<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "arial"; font-size: 9pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">BY Kauffman Nelson LLP CPAS and Don D. Nelson , Attorney, Charles Kauffman CPA</span></div>
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<span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If you are a US Citizen or green card holder you must file a US tax return every year unless your taxable income is below a certain threshold. Even if your income is below that threshold, you may still be required to file certain forms to report foreign assets, etc. Failure to file these forms can result in severe IRS penalties. If you do not itemize your health, tax, interest, charitable and miscellaneous deductions you get a standard deduction of $12,000 if single or filing as married filing separately or $24,000 if you file jointly with your </span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaQ30vNXzOZQwDTWimVZOtb_r2Mq9bK1IPoY7BBpmVusO3jK1EI5ogHtijDDD4b-sWgmoZtnMJ6FraBCU-yRyRpbzUejozgEtND4Ag_Yq9Eufz23cyJcJRnTnjO3nZp93C2f7fe_orOJ8r/s1600/Solmar+Pool+2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="397" data-original-width="595" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaQ30vNXzOZQwDTWimVZOtb_r2Mq9bK1IPoY7BBpmVusO3jK1EI5ogHtijDDD4b-sWgmoZtnMJ6FraBCU-yRyRpbzUejozgEtND4Ag_Yq9Eufz23cyJcJRnTnjO3nZp93C2f7fe_orOJ8r/s320/Solmar+Pool+2.jpg" width="320" /></a><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">As a US expatriate living and working abroad 4/15/19, your 2018 tax return is automatically extended until 6/17/19 but any taxes due must be paid by 4/15/19 to avoid penalties and interest. The return can be further extended until 10/15/19 if the proper extension form is filed. An even further extension until December may be available if the proper letter is sent to the IRS.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 6.7pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">For 2018 if you are a qualified expatriate you get a foreign earned income exclusion (earnings from wages or self employment) of $104,100, but this exclusion is only available if you file a tax return. You must qualify under one of two tests to take this exclusion: (1) bonafide resident test or (2) physical presence test. You can read more about how to qualify in IRS Publication 54. This exclusion only applies to income taxes and does not apply to US self- employment tax (social security plus medicare). You spouse who lives and works abroad with you will also be able to use this exclusion against any earned income they have abroad. You can lose this exclusion if you file your return more than 18 months late. The exclusion can only be claimed on filed tax return and does not apply if you fail to file a tax return.</span></div>
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<span style="font-family: "noto sans symbols"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">For 2018 if you qualify for the entire year for the f</span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">oreign earned income exclusion (form 2555) </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">you will be excluded from having to comply with the health insurance rules (or possible penalties) of Obamacare (ACA). These rules are complex and should be reviewed if you do not qualify for the expat exclusion for the entire year of 2017 because you may have an obligation to purchase health insurance or be penalized.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 3.95pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If your foreign earnings from wages or self -employment exceed the foreign earned income exclusion you can claim a housing expense for the rent, utilities and maintenance you pay if those amounts that exceed a minimum non-deductible amount. There is a limit to the housing amount and certain “high-cost” locations there is a higher amount of housing expense which can be considered. (For “high-cost” country limitations see Form 2555 instructions).</span></div>
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<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">You get credits against your US income tax obligation for foreign income taxes paid to a foreign country but you must file a US tax return to claim these credits. This avoids double taxation of the same income.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 33.4pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If you own 10% or more of a Foreign corporation or Foreign partnership (LLC) you must file special IRS forms, or incur substantial penalties which can be greater including criminal prosecution if the IRS discovers you have failed to file these forms.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 8.4pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If you create a foreign trust or are a beneficiary of a foreign trust you may be obligated to file forms 3520 and /or 3520A each year to report those activities or be subject to severe penalties. Foreign foundations and non-profits which indirectly benefit you may be foreign trusts in the eyes of the IRS.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 8.45pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Your net self- employment income in a foreign country (earned as an independent contractor or in your own sole proprietorship) is subject to US self -employment tax (medicare and social security) of 15.3% which cannot be reduced or eliminated by the foreign earned income exclusion. The one exception is if you live in one of the very few countries that have a social security agreement with the US and you pay the equivalent of social security in that country. </span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 9.6pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Forming the correct type of foreign corporation and making the proper US tax election (to cause the income and foreign taxes the foreign corporation pays to flow through to your personal US tax return) with the IRS for that corporation may save you significant income taxes and avoid later adverse tax consequences. You need to take investigate this procedure before you actually form that foreign because it can be difficult to make that election later and only certain types of foreign business entities are eligible to make this election..</span></div>
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<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If at any time during the tax year your combined highest balances in your foreign bank and financial accounts (when added together) ever equal or exceed $10,000US you must file a FBAR form 114 with the IRS by October 15, 2019 for the 2018 calendar year or incur a penalty of $10,000 or more including criminal prosecution. Foreign financial accounts often include accounts in you sign on for a foreign corporation, foreign partnerships foreign pension plans, stock brokerage accounts, and cash surrender value of foreign life insurance. This form does not go in with your personal income tax return and can only be filed separately on the web at: </span><a href="http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html" style="text-decoration-line: none;"><span style="color: #1155cc; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html</span></a></div>
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<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">The IRS gets lists of Americans applying or renewing for US passports or entering the country. They will compare these lists with those who are filing US income tax returns and take action against those who do not.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 11pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Often due to foreign tax credits and the foreign earned income tax expats living abroad who file all past year unfiled tax returns end up owing no or very little US taxes.</span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> The IRS has several special programs which will help you catch up if you are in arrears which will reduce or possibly eliminate all potential penalties for failing to file the required foreign asset reporting forms. We can direct you to the best program for your situation, prepare the returns and forms and represent you before the IRS.</span></div>
<br /><div dir="ltr" style="line-height: 1.2; margin-bottom: 0pt; margin-left: 23.1pt; margin-right: 4.7pt; margin-top: 0pt; padding: 0pt 0pt 0pt 18pt; text-indent: -18pt;">
<span style="font-family: "noto sans symbols"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Beginning in 2011 a new law went into effect which requires all US Citizens report all of their worldwide financial assets with their personal tax return if in total the value of those assets exceed certain minimum amounts starting at $50,000. Failure to file that form 8938 on time can result in a penalty of $10,000. The form is complex and has different rules that apply to you if you live abroad or live in the US. This form is required in addition to the FBAR form 114.</span></div>
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<span style="font-family: "noto sans symbols"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 12pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Certain types of income of foreign corporations are immediately taxable on the US shareholder's personal income tax return. This is called Subpart F income. The rules are complex and if you own a foreign corporation you need to determine if these rules apply to you when you file the required form 5471 for that corporation. For 2018 a new tax was enacted with the acronym of GILTI tax. This may or may not cause every Controlled Foreign Corporation to owe taxes on the income it does not distribute to its owners. </span><a href="https://www.thetaxadviser.com/issues/2018/jun/gilti-repatriation-taxes-issues-flowthroughs.html" style="text-decoration-line: none;"><span style="color: maroon; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">LEARN MORE HERE</span></a></div>
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<span style="font-family: "noto sans symbols"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">✦</span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">If you own investments in a foreign corporation or own foreign mutual fund shares you may be required to file the IRS form 8621 for owning part of a Passive Foreign Investment Company (PFIC) or incur additional, taxes and penalties for your failure to do so. A PFIC is any foreign corporation that has more than 75% of its gross income from passive income or 50 percent or more of its assets produce or will produce passive income.</span></div>
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<span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">There are many more special tax laws too numerous to mention here that apply to expatriates, green card holders and US taxpayers with foreign assets, businesses, etc. Please consult a tax expert if you have other offshore matters to be certain what is required to be filed.</span></div>
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<span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Download your </span><span style="color: blue; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="color: navy; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxleHBhdHRheGF0dG9ybmV5Y3BhfGd4OjYzNzlkMDUyMTEzMmVhNGU" style="text-decoration-line: none;"><span style="color: navy; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">2018 US tax return questionnaire prepared expressly for Expatriates HERE.</span><span style="color: black; font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;"> </span></a><span style="font-family: "arial"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">Send us your completed questionnaire and we will immediately provide you with a flat fee quote for preparing your return(s). </span></div>
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<span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Don D. Nelson, US Tax Attorney, Charles Kauffman CPA, Kauffman Nelson, LLP, CPAs</span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span><span style="font-family: "arial"; font-size: 8pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Huntington Beach, California USA</span><span style="font-family: "arial"; font-size: 8pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">US Phone: (949) 480-1235, US Fax: (949) 606-9627</span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Email:</span><a href="mailto:ddnelson@gmail.com" style="text-decoration-line: none;"><span style="color: navy; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">ddnelson@gmail.com</span></a><span style="color: blue; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"> or </span><a href="mailto:ustax@hotmail.com" style="text-decoration-line: none;"><span style="color: navy; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">ustax@hotmail.com</span></a><span style="color: blue; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="color: blue; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Skype address: dondnelson </span></div>
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<span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Visit our International Tax Blog for the Latest Expat and International Tax Developments at </span><a href="http://www.usexpatriate.blogspot.com/" style="text-decoration-line: none;"><span style="color: navy; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">www.usexpatriate.blogspot.com</span></a><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"> / </span><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="http://us-mexicantax.blogspot.com/" style="text-decoration-line: none;"><span style="color: navy; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">http://us-mexicantax.blogspot.com/</span></a></div>
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<span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">We have been preparing tax returns and assisting US clients located in over 123 countries around the the world for over 35 years. We also assist US Nonresidents meet their US tax obligations and return filing requirements. Email, skype or phone us for immediate assistance. </span></div>
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<span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">MINI TAX CONSULTATIONS BY PHONE, SKYPE OR EMAIL: We offer mini consultations (with attorney client privilege) to answer your tax questions and resolve your tax issues. Email: </span><a href="mailto:taxmeless@gmail.com" style="text-decoration-line: none;"><span style="color: black; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">taxmeless@gmail.com</span></a><span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"> to learn more or request a consultation</span></div>
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<span style="font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">For additional useful information and tax assistance go to our website at. </span><a href="http://www.taxmeless.com/" style="text-decoration-line: none;"><span style="color: black; font-family: "arial"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">www.TaxMeLess.com</span></a></div>
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<span style="font-family: "times new roman"; font-size: 10pt; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Disclaimer and Conditions: </span><span style="font-family: "times new roman"; font-size: 10pt; vertical-align: baseline; white-space: pre-wrap;">The information contained herein is general in nature and is not to be construed or relied on as tax or legal advice with respect to you individual tax situation or questions. Your use of this material does not create any attorney/CPA relationship between you and this firm or any other obligation. You are advised to retain competent tax professionals help with your individual tax matters and for appropriate answers your specific tax questions.</span></div>
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Don D. Nelsonhttp://www.blogger.com/profile/13763998516524589975noreply@blogger.com0