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Friday, November 14, 2014

TAXATION OF AMERICANS (GRINGOS) UNDER MEXICAN TAX SYSTEM

Review and download this excellent PWC book on taxation of nonresidents in Mexico.  HERE  If you need help filing or planning for your US income Taxes while living, working or operating your business in Mexico contact us at www.TaxMeLess.com or email ddnelson@gmail.com


Monday, September 15, 2014

US IncomeTax Casualty loss Deduction for Damages Incurred in Baja Sur and Los Cabos from Hurricane Odile

If you vacation home in Baja Sur was damaged from Hurricane Odile you should be able to deduct part of the cost of fixing the damages on your personal US tax return.  Personal casaulty losses are deductible (this is usually measured by the cost of repairing the damage or decrease in value of the property).  The repair cost is deductible to the extent it exceeds $100 plus 10% of your adjusted gross income. Of course any insurance reimbursement is deducted from the amount of the loss before you calculate the deductible portion.

The rules for losses on business property and business rentals are different and more generous.

Read the casualty loss tax deduction rules at: http://www.aicpa.org/InterestAreas/Tax/Resources/IRSPracticeProcedure/DownloadableDocuments/Casualty_Guide__June2012.pdf

The IRS pamphlet covering Casualty losses is located at: http://www.irs.gov/pub/irs-pdf/p547.pdf

If you need help understanding these complex rules and how they apply to your Mexican properties write us at ddnelson@gmail.com

Friday, June 6, 2014

US Expatriate Tax Return Due Dates

If you live abroad, your US return is due on 6/15/14 for 2013. You can file for an extension which will allow you to wait until 10/15/14 using form 4868 or go to IRS website at www.irs.gov and you can file the extension on line using free file.  The extension does not extend the time to pay any tax you owe.

For the FBAR (foreign bank account report) you must file it by 6/30/14 for 2013 and no extensions are granted.  It is now called form 114 and is filed on line at:     http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html    Be sure to keep your receipt and download a copy of the form (in pdf format) so you have proof of filing. The IRS systems sometimes get mixed up.


Fideicomiso Fees comparision between banks

Though the US IRS does not require you file any special forms for your fido anymore (since June 2013), Mexico will not be eliminating the requirement for foreigners to hold real property through Fideicomisos since the banks do make a lot of money for them.

See the following link for a comparision of the fees charged by the Mexican banks:  http://www.thepaperchase.com.mx/blog/

Sunday, March 16, 2014

Are You Inviting an Audit?

http://triblive.com/mobile/5740073-96/irs-business-audit

Thursday, March 13, 2014

10 MOST EXPENSIVE STATES TO PAY TAXES ...WHY EXPATS NEED TO EFFECTIVELY SURRENDER STATE DOMICILE

Some states make it difficult for expats abroad to stop paying state taxes. Some of the most expensive states are those ones. See most costly income tax states in article below.

http://www.gobankingrates.com/tax/top-10-most-expensive-states-file-taxes/

Friday, March 7, 2014

US EXPATS & FOREIGN PENSION PLANS

From Forbes ... An excellent article on US taxation of foreign pension plans... Many problems and surprises

http://www.forbes.com/sites/janetnovack/2014/03/06/pensions-create-yet-another-tax-trap-for-u-s-expatriates/