Read the caveats under the "Real Estate" section here:

http://travel.state.gov/travel/cis_p...s/cis_970.html

and here

http://www.voyage.gc.ca/main/pubs/mexico-en.asp

I'd say its a bad investment.

Rudy
www.LizcanoTaxServicesLLC.com

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Thank you all. I'm trying to talk the client out of the
investment, especially since the timing for a Los Angeles
resident is terrible. And the clients are very nice people,
retired, dreaming of a home in the sun on a beach.........

Oh well
Nan, EA in LA

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"Nan, EA in LA" <naneklund[at]aol.com> wrote:

- quote -

Is your client aware that Mexican law has restrictions on
ownership of property by foreigners? For example, the
Mexican constitution forbids ownership of property located
within a certain distance of the sea or the borders. See

<http://www.mexonline.com/business/legalrealestate.htm
--
D.F. Manno | dfmanno[at]mail.com
I don't trust organized anything: teams, religions,
corporations. People in enterprise together consistently do
two things: promulgate the enterprise, no matter what, and
protect miscreants in their midst. (Alfred Lubrano)

Inviato da X-Privat.Org - Registrazione gratuita http://www.x-privat.org/join.php

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"Nan, EA in LA" <naneklund[at]aol.com> wrote:

- quote -

Rental income generated in Mexico is taxed at regular income
tax rates, after deducting actual expenses or a blind
deduction of 35%, whichever is greater. This provision
applies to residents. Non-residents pay a flat 25% on the
gross income. Both residents and non-residents may be
required to charge valued added taxes and may also need to
charge a 2% hotel tax, depending on the circumstances. While
it was relatively easy to avoid taxes on Mexican rental
income, but now things have change, for example in Playa del
Carmen and Isla Mujerfes , are cracking down on those
persons who are not paying income taxes on rental income.

DO A GOOGLE SEARCH. There is pleanty of info.

--
Dennis

Disclaimer: The above is my opinion. I do not guarantee it.
Be sure to back up any files involved and use at your own
risk. Batteries not included. Not for internal use. Don't
run with knives.

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Send an e-mail to: info[at]consulmexsd.org

The Mexican Consulate in San Diego has a tax specialist on staff.

Linda Dorfmont E.A., CFP, CSA

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"Nan, EA in LA" <naneklund[at]aol.com> wrote:

- quote -

Try http://www.mexadv.com/

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A California client wants to buy either a time share or a
condo in a resort area in Mexico and rent it out. (Don't
know -yet- whether or not it will fall into "vacation home"
category.)

I know NOTHING about Mexican taxes. Will they have to file
a return there for current income or deductions? Will they
have to file there if or when they sell? If a tax return is
required, where do I get information.

Nan, EA in LA

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