In Mexican Capital Gains Taxes, if you rebuy another?

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  • In Mexican Capital Gains Taxes, if you rebuy another?


Answer #1 | 21/04 2007 11:28
This works for American tax payers because we have something called "like kind exchanges". I'm not an expert in Mexican taxes, but they might have the same thing. The way it works is you trade your property for another property directly (no cash involved). It has to be two similar properties: real estate for real estate residential for residential commercial for commercial etc. If in the trade anything else trades hands (cash, debts, or other property), you're going to pay taxes on the value of the other stuff up to the amount of your total gain. For example, if you were paid $10,000 cash and you were relieved of $10,000 in debt, you'll pay taxes on the $20k if your gain was equal or more than that. ********************************* The way the deferred capital gain works is that you just keep your original basis in the property. If you originally paid $150k for land, and you trade it for another piece of land, you use the original cost as your cost basis for the new land regardless of what it's worth. If you get a good deal and trade for land worth $1 million, you'll eventually have a gain of $850k when you sell, but you defer the tax on that gain until the date you actually get rid of the property. (You could potentially trade land for land a dozen times and never pay a capital gain tax. You're not responsible to pay it until you finally sell.) ************************************* Sorry, have to edit: This site says that Mexico doesn't even have a capital gains tax. When you sell anything, the gain is considered ordinary income. (I didn't see anything about like-kind exchanges, but you receive cash and then buy another property immediately, the rules don't apply anyway. You would be treated as if you had sold for cash.)
Answer #2 | 23/04 2007 21:45
I sent this to the last poster -- all others: feel free to answer if you know... I saw your response on Mexican capital gains taxes. When you said 'trade one property for another" (to paraphrase) do you know this for sure? We are selling a property and then buying a house (both in Mexico). So we could avoid the tax since we are rolling the money into another property? Or do you literally have to trade one for the other? We are selling the lot to one party --- and buying our house from another. Make sense?
Answer #3 | 26/04 2007 14:28
you can go to singapore

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