pk
Level 15
Level 15

Deductions & credits

@mlittleton-farme , having gone through the above discussion  and generally agreeing with my colleagues @Critter-3  and @DoninGA , the situation in Mexico  ( as I understand it  ) is 

(a) all residents  or persons  with permanent abodes in Mexico, must have a tax id called RFC --- these are issued by the local SAT office, free of charge.

(b) all transactions  incur IVA  ( like VAT in Europe )

(c) the payor ( the buyer ) in case of foreign persons selling  assets , must withhold  sales / transaction taxes  and IVA and deposit in the sellers RFC account.

(d) RFC cannot be acquired in the USA -- only local SAT can issue it

(e) since all  real asset sales are co-ordinated by a  "NOTARIO ",  --usually in locality / nearest larger town -- perhaps you should contact that Notario for advice on how to get around  this .  This is because as I understand the  tax department really one cares that the taxes are collected and if you are foreigner  you are not going to file return there in MX anyways.

(f) I am assuming here that the property you are selling is not held  under a fideocommiso by the bank ( i.e. you are a Mexican national )

 

Please can you update us on this once you speak to the local NOTARIO -- this is knowledge extension

 

pk