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taxes on sale of a home


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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?

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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.

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  • 2 weeks later...

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.

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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? :)

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