Jump to content
Chapala.com Webboard

Need Steps For Making SAT Declaration Capital Gain on House Sale


Recommended Posts

I am Res. Permanente, will be in Texas to make the SAT declaration over the border at SAT (Hacienda).

Sold my house in Mexico, but the notario did not do the SAT declaration.

What are the steps to do this? Can I just show up at SAT, or what?

I have heard I need a username/pswd established to get into SAT website.

How is this done, can I do it?

Then I heard I need an appt to visit the SAT office, but I should think having a username/pswd should come first, yes?

Can I get it done in one visit, make the appearance, make the declaration with the house closing papers in hand, pay anything due,

and be done?

I suspect if I do not make the declaration, then I won't be able to buy again a house in Mexico.

Thank you for any information. Much obliged.

Link to comment
Share on other sites

If the Notario/a didn't do a SAT form for capital gain on your house sale required by the Secretaría de Hacienda y Crédito Público /SHCP he/she is in violation of the said law requiring all Notario/as to submit the completed and accurate official SAT form and withhold and submit the money, if any is required, before closing the sale and drawing up the title (escritura) and you signing and the buyer signing it and transfering the money into your bank account. It has nothing to do with you. If your Norario/a didn't maybe in your case it was not required or you are misunderstanding something. Notario/as are libel to pay all taxes and fees not collected from the seller or buyer if they make an error. I suspect you should not go into any SAT office. Call your Notario/a to clearify the tax owing situation and they will have to deal with SAT. If they refuse you might have to hire a legal attorney, not another Notario/a. This is the way I understand it.

Now after thinking about it I am not sure Notario/as are responsible for capital gains taxes for sellers only for other taxes and fees. The seller might be the responsible party after the sale goes through like NOB capital gains tax.

Link to comment
Share on other sites

I don't know anything about capital gains declarations, but I am familiar with SAT, as I have run a business and reported and paid taxes for 16 years.

Do you have an RFC number? If so, then you can set up an account on the SAT site. If you don't have an RFC, you can't.

Pre-Covid, you could just show up at the SAT office and take a number and wait your turn, or make an appointment online. But the offices either closed entirely during the pandemic and you could only use their online site, or you had to make an appointment, but that was almost impossible as they only opened the calendar to appointments 2 weeks ahead and it didn't matter what time of the day or night you tried to make an appointment, the slots were all full.

Also various offices seemed to be operating differently.

So if you have an RFC, register online on the SAT site, and see if you can book an appointment, otherwise I would say you only have the option to go to the office during office hours and see if they take walk-ins, or how you can make this declaration. You could also find a Mexican accountant to deal with it for you.

Alan posted at the same time I did. It seems that the notario had a legal obligation to do this. I would then start by contacting the notario. But you also need proof of him filing the declaration. 

Link to comment
Share on other sites

Thank you Alan and Mudgirl.

Yes I have an RFC but that does not mean I know how to set up an account with SAT online.

I asked an accountant in Mexico and he said much what Alan said: why didn't the notario complete this at the time of the closing on the house sale.

I have spoken with the notaria office. The office manager said he could get me a password and file the declaration

for $175 usd. That seemed high to me.

I plan to discuss this with him day after tomorrow (Monday), and find out why it was not done as part of the closing.

Can I ask that you stay tuned to this thread, as making the trip into Mexico each time is a full day's journey.

I would like to limit my trips to SAT, and if my trips to SAT become more than two, then I have to evaluate.

Thanks.

Link to comment
Share on other sites

Although YMMV, I can tell you that in all my dealings with SAT at their office, at least the one I deal with in Puerto Vallarta, they have been very helpful and easy to deal with. It's one branch of the Mexican govt. that seems to be quite organized and efficient. 

And an office in a border town is likely to have quite a few English-speaking staff, which isn't the case in the PV office. 

Link to comment
Share on other sites

I would say if the notario didn't ask for capital gains on the house sale then none are due. You have a deduction from the capital gains of about $250K yourself and $250K for spouse if there was one. So if a couple made less than approximately $500K from the purchase shown on your deed to what the buyer's deed showed, a couple would owe no taxes. 

Link to comment
Share on other sites

30 minutes ago, geeser said:

I would say if the notario didn't ask for capital gains on the house sale then none are due. 

I don't know how it works with a house sales and capital gains, but I  do know that just because there are no taxes owing doesn't mean a declaration isn't required. 

In my upholstery business, even in months where I have no earnings, I still have to file a declaration which states zero income. 

 

Link to comment
Share on other sites

Yes, that is totally up to the notario to file and  to collect the funds from you. The Notario #5 in Chapala told me it would be approximately $250K. The Notario has the final say in this transaction. His job is to represent the Government, he is not just an attorney. 

Link to comment
Share on other sites

Hola! Anyone (Mexican or foreigner) that sells a property in Mexico MUST do a tax declaration in April of the following calendar year. It is NOT the notario's responsibility. 

The notario MUST collect and pay any capital gains taxes (ISR - Impuesto sobre la renta) on your behalf and declare that payment to the SAT. But the seller still is obligated to verify the sale with the SAT. 

Any Mexican accountant should be able to assist. You may need to collect documents from the notario involved in the transaction to provide to an accountant. 

We are not aware of anyone being punished for not doing so, but the law suggests all kinds of fines / fees / interest for those that do not. I personally would not leave it to chance. 

Cheers!

  • Like 1
Link to comment
Share on other sites

Fascinating. Sold a house in Guanajuato and paid the capital gains (because we only had FM3's at the time) through the Notario. Documented. Then sold another house in Nayarit but didn't have to pay capital gains and that was also documented. IF you have no other source of income in Mexico then you don't have to file an income tax return in Mexico. The only stipulation was needing to keep all the documentation for seven years. Is there something NEW Thomas?

 

Link to comment
Share on other sites

There may be some confusion in terms here. "Documentation" of a sale and capital gains payment is not the same as filing a "declaration" with SAT, nor is a declaration an income tax return. 

For example, until they changed the tax system this January, I had to submit a declaration of income and expenses every two months for my business, then pay the taxes owing. The "documentation" that I had made those payments is the transfer of the payment shown on my bank statement, or the receipt from the bank if I paid it in cash. The declaration is simply a reporting filing, not proof that I paid the taxes owing. 

 

 

Link to comment
Share on other sites

It has been the Notario's legal responsibility, in the past, to make sure that the money withheld from a seller for capital gains gets to SAT. It has not been the responsibility of the seller. The documentation that you receive from the Notario stating that information is legally binding to that effect.

Considering that a Notario is responsible for any screw ups on his part,  I do not understand what Thomas is trying to say. Is this a double check of some kind that's new?

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...