My family moved to Mexico at the beginning of the year, and we have just started our own small business here. My wife and minor daughter are dual-citizens of the US and Mexico, and I am a US citizen with a residency visa. At the end of the year, we will have spent 60 days in the US and the remainder in Mexico. We will have had no domestic income.
Generally, how will filing our taxes be different this year?
Specifically regarding our foreign income, will we have to report it as a gross total or will we be able to deduct our expenses just as if it were a domestic small business? Should we file our Mexican taxes first and use the totals reported there? (The business is in my wife’s name, equivalent to a sole proprietorship in the US. And we have always filed our taxes jointly since marriage.)
And finally, is there any benefit or drawback to transferring our income from our local Mexican account to our domestic US account?
Thank you so much in advance!
