alacran26 Posted July 20, 2014 Report Share Posted July 20, 2014 I have searched this forum and seen a number of different views on the law. The reason I bring this up is that a realtor recently told me that the "capital gains" tax is on all sales of homes regardless of the amount, no exemption for the less than $300,000 dollars. That the law just changed again. Has anyone had experience recently selling to see if this is true? Or heard anything to this effect? Link to comment Share on other sites More sharing options...
Intercasa Posted July 20, 2014 Report Share Posted July 20, 2014 You can exempt a gain up to the amount of 700,000 UDIs which is roughly 3,500,000 pesos if you have a residente temporal or permanente, it is your primary home, you have not used the exemption within the last 5 years and your land does not exceed more than 3 times your building footprint, among other things. Link to comment Share on other sites More sharing options...
alacran26 Posted July 20, 2014 Author Report Share Posted July 20, 2014 Thank you Spencer! Link to comment Share on other sites More sharing options...
Intercasa Posted July 20, 2014 Report Share Posted July 20, 2014 Yes Link to comment Share on other sites More sharing options...
Wait. What? Posted August 1, 2014 Report Share Posted August 1, 2014 Are you also required to pay the 16% IVA on the agent's commission? Seems I'm paying their taxes for them in that case. Is this legal or just something agents try to get away with? I cancelled my contract because of this. Link to comment Share on other sites More sharing options...
lakeside7 Posted August 1, 2014 Report Share Posted August 1, 2014 Are you also required to pay the 16% IVA on the agent's commission? Seems I'm paying their taxes for them in that case. Is this legal or just something agents try to get away with? I cancelled my contract because of this. I hope that you did not cancel your sale Link to comment Share on other sites More sharing options...
Intercasa Posted August 1, 2014 Report Share Posted August 1, 2014 Yes you pay the IVA 16% sales tax on services, not just goods and this is something people don´t get as they are used to paying sales tax on the sale of goods only and not professional services. You pay the sales tax of 16% and they pay income tax. It is like purchasing something in the US like a car, you pay sales tax and the dealer still pays income tax on their profit. Link to comment Share on other sites More sharing options...
Natasha Posted August 3, 2014 Report Share Posted August 3, 2014 You can exempt a gain up to the amount of 700,000 UDIs which is roughly 3,500,000 pesos if you have a residente temporal or permanente, it is your primary home, you have not used the exemption within the last 5 years and your land does not exceed more than 3 times your building footprint, among other things. No bone to pick since don't have a house for sale nor in the market to buy. However, for those who DO, in think there must be a "typo" here somewhere and what you've posted could be mis-leading. Using 13 pesos to the USD (easy number and close to the mark) $700,000 USD x 13 = 9,100,000 pesos -- NOT 3,500.000 Alternatively, 3,500,000 pesos divided by 13 = $269,230 USD .... NOT 700,000. You might like to double-check your figures? Link to comment Share on other sites More sharing options...
bmh Posted August 3, 2014 Report Share Posted August 3, 2014 the 3,5millions pesos is the correct figure unfortunately. Link to comment Share on other sites More sharing options...
CSOKI Posted August 3, 2014 Report Share Posted August 3, 2014 It is 700,000 UDIs. Not US$. An UDI is an Investment Unit. Unidad de inversión . ``UDIS son unidades de valor que se basan en el incremento de los precios....`` Link to comment Share on other sites More sharing options...
Intercasa Posted August 3, 2014 Report Share Posted August 3, 2014 700,000 UDI, the UDI is an index, today it is 5.141(http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuadro=CP150§or=8&locale=es) 3,598,700 to be exact. Link to comment Share on other sites More sharing options...
Natasha Posted August 4, 2014 Report Share Posted August 4, 2014 Thanks to both. Had never heard of Unidades de Inversiones before.......... Always good to add to one's knowledge base. Link to comment Share on other sites More sharing options...
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