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cabochap
New Member

I sold a my home in Cabo San Lucas, MX and paid the taxes. Are the taxes I paid deducible?

The closing costs for the sale of my home in Mexico was $107,922.00
is any part of it deductible? I bought my new house in Nevada,
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2 Replies

I sold a my home in Cabo San Lucas, MX and paid the taxes. Are the taxes I paid deducible?

What kind of taxes did you pay?

I sold a my home in Cabo San Lucas, MX and paid the taxes. Are the taxes I paid deducible?

First the sale of a personal residence may be excluded from US tax if you qualify :   https://journal.firsttuesday.us/excluding-profit-on-the-sale-of-a-foreign-home/26033/

 

Then, the closing costs are added to the cost basis to figure if there was a taxable gain.  

 

Lastly, only if the gain is taxable will you be able to use any part of the Mexico income tax as a deduction or a credit.  

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