30% Capital Gains Tax

Rumor or Fact? Homes sold after Oct. 1, 2011, seller must pay 30% capital gains tax, unless they hold an FM 2. If true, is this after paying 7 % sales commission and IVA?

Folks in The States don't hafta worry about Capital Gains Tax if they sell their homes!!

First ya hafta have A Capital Gain!!

Jim W wrote:Rumor or Fact? Homes sold after Oct. 1, 2011, seller must pay 30% capital gains tax, unless they hold an FM 2. If true, is this after paying 7 % sales commission and IVA?

My Realtor in my neighborhood told me you need an FM 2 to sell your house not an FM 3. Thus no capital gains. No problem since the next time you renew, there will be no more FM 3's. They're gone!

Thank You John, there has to be more to it than that.....do you know where to get the formula to calculate "gain", as many who purchased 2008-2009, are looking at a net loss after realtor comission, IVA, and improvements.

Jim W wrote:Rumor or Fact? Homes sold after Oct. 1, 2011, seller must pay 30% capital gains tax, unless they hold an FM 2. If true, is this after paying 7 % sales commission and IVA?

A Gain should be anything U Net at the end of a deal... less your original costs...

Mtce, Comish, Txs are all a part of and a cost of the Exchange...

Short answer

YES

Hmmm... now U have me wondering if U could include the payouts to the Staff... gardener, housekeeper, etc...

Hocks, this typical, for Mexico......Rumors 1st., LOL My neighbor, a widow, was told by her Realtor, that the new rule kicks in the 1st of October 2011. She purchased her home over 20 years ago while on FM3, and has no receipts for improvements made.

I contacted two brokers, and was advised that nothing regarding this is definitive,
yet subject to change....LMAO AMIGO

I discussed the same subject with Spencer because I have an older house that needs some repairs and since I've owned it more than 5 years I'm hoping to sell it without capital gains. Spencer advised me of the merging of FM2 and FM3 but said to go to the Notario of my choice and discuss capital gains. Don't know a good notario so I haven't done it yet. If I learn anything I'll post it and please do the same for me.

One of the first things you might consider is getting your house properly appraised at the tax office.

Far too many people have their house listed at a lower value so that they pay less in property taxes...this can come back to bite you in the butt when you want to sell. The taxes are a pittance here anyway.

This is also being discussed on TOB under the heading "Visa"....SeeWee posted the current legal information in detail.

Please also keep in mind, that unless you got an official "Factura" for any home renovations or improvements, they are not deductible. Nor is upkeep and maintenance...Real Estate commission is.

Definitely find the right Notario.

What often happens, as in my case, is that the seller puts an artificially low price on the house in the paperwork that gets filed in order to avoid his capital gains. We got bamboozled into agreeing to that at closing time (WHAT?) and it was go along with it or stop the sale. We folded, after being told "everybody does it here.) Maybe.

Now, if we sell the place, there's a huge gap between point (a) (buying price) and selling price (b)........no matter what we sell if for.

Watch out for the quicksand on that one.

gringal wrote:Definitely find the right Notario.

What often happens, as in my case, is that the seller puts an artificially low price on the house in the paperwork that gets filed in order to avoid his capital gains. We got bamboozled into agreeing to that at closing time (WHAT?) and it was go along with it or stop the sale. We folded, after being told "everybody does it here.) Maybe.

Now, if we sell the place, there's a huge gap between point (a) (buying price) and selling price (b)........no matter what we sell if for.

Watch out for the quicksand on that one.

gringal, you are absolutely on target, regarding proper evaluation, at time of purchase......My realtor was Eager when I purchased my home in 2005, and he strongly suggested We bump the valuation 1,000,000 pesos. The result has cost me approx. 500 pesos per year, in property tax, and limited my exposure to the possible capital gains tax........
Thank You Mark Eager!