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Selling your House Beware Permanente and Primary Residence

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4 hours ago, lakeside7 said:

By 3 RE transactions in the last 6 months, do you mean three sales.... and no capital gains....interesting

Paid capital gains on one sale.  I remember the wait period is in fact 3 years and not 5 years.  

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You can deduct expenses for building, materials, etc, but those receipts have to be official facturas, not just counter receipts and the facturas need to be in your name, meaning you have to have an RFC # and the facturas issued to you under that number.

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i second  Notario #2, Luis Enrique Ramos Bustillos. He is the best .

Also does ll the legal work for Have Hammer will Travel A.C. carpentry school

known him for 9 years.

 

His Assistant lawyer  Darian Rivera Paez She also very helpful

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On 2/14/2019 at 4:07 PM, Lily H said:

I have promised myself never write anything here again, only read for the great information (Thanks to many of you). Here I am again.

My understanding of capital gain exceptions are if:

1. You're selling your primary residence,

2. You're resident (both temporary and permanente) with tax ID (RFC).

One can make one claim once every 3 years based on if the land/yard isn't more than 3 times of the structure.

The flat rate exemption is like someone mentioned earlier 4 million pesos. A couple can claim each of your own if it's the primary residence.

You are correct.  We are selling our condo in Puerto Vallarta because we live in Ajijic full time now and like it better. I have researched the law and talked to my realtor. Find another notario, they are flat wrong.

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Ok, went to see a notario today to ask about selling our house. Here are the facts:

  • Once every three years you are allowed a tax exemption of $4,300,000, this is actually 700,000 UDIs, whose value changes daily.
  • Must be your primary residence.
  • Must be permanente
  • You need a tax (RFC) number
  • You need to show six months of CFE or Telmex bills with your name and address. Bills must show sufficient amount to prove you were actually living there.
  • If you go over the exemption, you will be taxed on the difference: $sales price - $purchase price - $exemption.

 

Notario didn't charge anything for this consultation, so no reason to avoid consulting. Never listen only to what agents will say!

Hope this helps.

 

Pete

 

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9 hours ago, peteben said:

Ok, went to see a notario today to ask about selling our house. Here are the facts:

  • Once every three years you are allowed a tax exemption of $4,300,000, this is actually 700,000 UDIs, whose value changes daily.
  • Must be your primary residence.
  • Must be permanente
  • You need a tax (RFC) number
  • You need to show six months of CFE or Telmex bills with your name and address. Bills must show sufficient amount to prove you were actually living there.
  • If you go over the exemption, you will be taxed on the difference: $sales price - $purchase price - $exemption.

 

Notario didn't charge anything for this consultation, so no reason to avoid consulting. Never listen only to what agents will say!

Hope this helps.

 

Pete

 

Pete is absolutely correct (we were researching this w/a notario, too). Again, it's VERY important to remember that you can take TWO credits (UDIs) if the deed is in both you and your spouse's names. It really makes a difference. Sadly, there are quite a few unethical agents who either don't know this or do, but choose to keep the information to themselves to use it as a scare tactic to get you to sell for less/a quick sale. We didn't bite, but it does happen. I wish you the very best of luck.

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UDIs (Mexican unidad de inversión) is an index unit of funds used in Mexico. The daily rate is set by the Banco de Mexico.

At yesterday Pete's appointment with his Notario, 700,000 UDIs ia about $4.3 million Mexican pesos, and that's the amount allowed as his capital gain excemption if he sells his house here. 

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