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Jaltemba Sol...the
heartbeat of the Riviera Nayarit
August 12th 2009
Important Deadline for U.S. Taxpayers Linda Neil -
settlement-co.com
August 10, 2009
U.S. taxpayers are required to file certain
reports with the U.S. government if they own
property in Mexico, have a business in the
country, or are shareholders in Mexican
corporations. Uncle Sam, U.S. tax watchdog, has
instituted a voluntary disclosure program for
those people who may have omitted reporting in
the past. This program is designed to limit
penalties that may be imposed on those U.S.
taxpayers who have failed to make the required
declarations previously.
A tax specialist, familiar with the law and
reporting requirements in both the U.S. and
Mexico can provide details. However, the most
common issues that need to be addressed are the
following: Property Owned in Trust (Fideicomiso):
Under Mexican law, any residential property
located in the "restricted" zone when foreigners
are involved, must be placed in a Mexican bank
trust, fideicomiso. The "restricted zone" is an
area 50 kilometers (approximately 30 miles) wide
along all the Mexican coastlines and 100
kilometers (approximately 60 miles) from the
Mexico U.S. and Mexico-Belize borders.
Under the U.S. regulation section 6048 (b)
Taxpayers must report ownership interest on Form
3520-A yearly and on form 3520 initially and if
there are any changes. The penalty for failing
to file these information returns is five
percent of the gross value of trust assets
determined to be owned by the U.S. taxpayer. Bank and Financial Accounts: U.S.
taxpayers must annually report direct or
indirect financial interest in a financial
account that is maintained with a financial
institution located in a foreign country if, for
any calendar year, the aggregate value of all
foreign accounts exceeded $10,000.00 USD at any
time during the year. This report of Foreign
Bank and Financial Accounts is commonly known as
an FBAR, and the penalty can be as high as the
greater of $100,000. USD or 50% of the total
balance of the foreign account if the failure is
deliberate omission. (Sec.31 U.S.C. 5321(a)(5).
Nonwillful violations are subject to a civil
penalty of not more than $10,000.00 USD. Shares of Stock or Interests in Mexican
Corporations and/or Partnerships: Generally
shareholders or partners with a 10% or greater
interest in the partnership or corporation must
inform the IRS of same through Forms 5471 or
8865. Failure to file can be quite costly.
As in most countries the U.S. tax regulations
are complicated, especially when dealing with
properties or assets located outside the United
States. Accountants, tax advisors and tax
preparers do not always know the rules regarding
filings for international assets nor the
ramifications of failure to file. For this
reason it is highly important that the US
taxpayer consult with experts in these
bi-national transactions. For further
information on these matters you may wish to
contact and consult with attorney and accountant
Don D. Nelson. (dondnelson@yahoo.com). Mr.Nelson
is a property owner in both countries and has
been preparing US declarations and US tax
filings for international clients for over
thirty years. Tax Obligations in Mexico:
Any foreigner with real property or business
income in Mexico must also plan to pay taxes in
Mexico. The good news! When paid with the proper
receipts, certain of these taxes can become a
CREDIT or a DEDUCTION in the country of tax
residence!
For example: Property Taxes: are due and payable every
two months, or can be paid in one annual
payment, usually with a substantial discount,
during the first two months of each calendar
year. Property taxes are based upon the value
declared by the property tax office where the
property is located and are generally relatively
low in comparison with rates in the U.S. and
Canada. On-going Taxes on Business Income: If you
have a Mexican corporation or partnership, no
matter what the activity, a monthly declaration
must be filed for IVA taxes (Added Value Taxes)
and for Impuesto Sobre La Renta which, in this
case, is more like an income tax. A local
Mexican accountant should be hired to review the
accounting procedures and to prepare and file
the monthly declarations. The monthly tax
payments are generally considered as provisional
and an annual declaration will show either a
refund or a payment due. These taxes can
also be a credit or a deductible expense in a
home country, depending upon how the companies
are established. An attorney-accountant with
international expertise in this will be an
important advisor to help avoid double taxation
on profits. Again you may wish to consult Mr.
Don Nelson at dondnelson(at)yahoo.com. Impuesto Sobre La Renta when a Property is
Sold: is a capital gains type of tax. For
foreigners who are tax residents of another
country, the tax is calculated in two ways:
1. It is a flat amount of the total selling
price; without deductions, or
2. It is a percentage of the difference between
selling price and the tax basis shown in the
seller's deed, less allowable deductions.
This calculation should be made both ways. The
good part of this is that it is the LOWER of the
calculations which shall be due and payable from
seller proceeds. The Mexican Notary Public
drafting the deed generally makes these
calculations and the seller needs to confirm
that it is the LOWER of the two figures which
will be paid. The Notary Public should also
provide the seller with a copy of the tax
payment for use with the tax authorities in
seller's tax residence country. Impuesto Sobre La Renta when income is
received from a rental of Mexican property:
All income received from Mexican property is
taxable in Mexico, regardless of the nationality
of the owner. Thus, the US or Canadian citizen
who rents a condominium or home regularly, or
occasionally, through a property manager or via
internet, is obligated to file declarations
MONTHLY. Failure to declare income can cause
very high penalties. The good news... taxes paid
are credits or deductions in taxpayer's home
country. For additional information on this very
important filing, please contact Lic. Quirino
Parra at: info(at)settlement-co.com. Linda
Neil is the founder of The Settlement Company,
which specializes in real estate transfers,
escrows, and consultations. Just added as a new
service, Settlement will now prepare monthly tax
declarations, file them and perform additional
essential landlord accounting services. For
reprints of this article or for further
information on tax paying services, please
contact The Settlement Company at
01-800-627-5130 if in Mexico; or 01-877-214-4950
or 011-52-612-123-5056 if calling from outside
Mexico. Email: info(at)settlement-co.com,
Website:
settlement-co.com.
Aug 5th, 2009
So what do you do when it gets real hot in the summer on
the Jaltemba Coast, pack up the kids and go to the zoo...the Guadalajara
Aquarium and Zoo. That's what Mateja did with Jesus and Christina.
Bill and Dot Bell photography. Click on the picture below to view video
Become a Friend of Riviera Nayarit on Facebook
click here
Headline News
North American summit begins in Mexico
President Barack Obama huddled Monday with the leaders of Mexico and
Canada for a swift North American summit, where the swine flu epidemic
and knotty disputes over cross-border trade dominated a lengthy agenda.
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Discovery Confirms Partial Use of Bricks in Ancient Maya Settlements
Remains of Prehispanic domestic architecture and an offering of ceramic
and marine elements were found at Jonuta Archaeological Zone, in Tabasco….Click
Here to Read More
Mexico Peso Surges to 2-Month High After Moody’s Affirms Rating
Mexico’s peso surged to a two-month high after Moody’s Investors Service
affirmed the government’s bond ratings and stable outlook, damping
speculation the country will suffer its first downgrade since 1995.
….Click Here to Read More
Vintage Mexican Sci-Fi Beams a Blast From the Past, con Queso
They came from outer space a half-century ago and landed in Mexico,
where moviegoers embraced big-headed freaks in Mylar tights and busty
female invaders from Venus. Fighting for the survival of Earth: mummies,
wrestlers and mad scientists.
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US
returns $2.4M in stolen oil money to Mexico
U.S. officials handed to Mexican authorities Tuesday $2.4 million paid
as restitution by an oil importer after the company president admitted
knowingly buying and reselling petroleum products stolen from Mexico's
oil monopoly.
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Sonia
Sonia Sotomayor and the Reconquest of America
When Puerto Rican judge, Sonia Sotomayor took her oath of office on
Saturday, August 8th, and was sworn in as a Chief Justice to the United
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How come? Stairs make weird echos
If you've ever heard the doubled sound of your own footsteps in a long,
empty hallway, you're familiar with echoes. Like an undeliverable
letter, an echo is sound returned to sender.
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Mexico's IMEF Manufacturing Index Rises To 50 In July
Mexico's Institute for Finance Executives, or IMEF, said Monday its
manufacturing index rose in July to its highest level in a year in a
sign the slump has probably hit bottom.
….Click Here to Read More
Mexico Says Bienvenido to ITunes Store
More than six years after the launch of the iTunes Store here in the
U.S., Apple has finally rolled out the world's most popular media store
in our great neighbor to the south, Mexico. At last, access to the
iTunes Store blankets North America, from Tapachula, Chiapas to
Ellesmere Island.
….Click Here For Original Article
Honduras' Zelaya meets Mexican president
Ousted Honduran President Manuel Zelaya on Tuesday praised the ongoing
peaceful resistance in his country to the government that forced him
from office.
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Gulf of Mexico topic of environmental summit
The Gulf of Mexico Alliance will meet in Mobile for three days beginning
Tuesday to discuss the health of the Gulf Region.
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Strong quake hits Mexico's Gulf of California
A powerful earthquake Monday shook fishing villages along Mexico’s Gulf
of California, prompting alarm as far away as Phoenix, but there were no
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Ever since he joined his famous parents onstage at Madison Square
Garden, Pepe Aguilar has helped to point traditional Mexican ranchera
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Indigenous people leave mark even though traditions fade in Mexico City
On eve of the United Nations International Indigenous Populations Day,
which falls on Aug. 9, community workers in Mexico City
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Archaeologists find 20 ancient human skeletons with their offerings in
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Twenty complete human skeletons with their offerings have been rescued
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The Three Eyed Iguanas of Puerto Vallarta, Mexico
The word “iguana“ is the Spanish derivation of the Carib (Amerindian)
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Mexico solicits public support against
dengue fever
MEXICO CITY, Aug. 4
(Xinhua) -- The Mexican government on
Tuesday urged its citizens to combat
dengue fever, a mosquito-borne tropical
virus that causes muscle pain, internal
bleeding and death.
Mexican Health Minister Jose
Angel Cordoba Villalobos urged the
public to avoid standing water in
abandoned cars and garbage, which
attracts mosquitoes, and to keep houses
clean.
He also asked Mexicans to report
to the health authorities immediately if
they show any symptoms of dengue.
The disease is threatening the
lives of thousands of Mexicans. Some
8,895 cases of dengue have been
confirmed by Sunday, compared to a total
of 10,400 cases registered last year,
Cordoba Villalobos told local radio.
Many state authorities have
issued virus alerts to local residents,
including Colima, Guanajuato, Guerrero,
Hidalgo, Puebla, San Luis Potosi and the
state of Mexico.
Sanitary enclosures were set up
in Gorda mountain range in Queretaro
state. Residents of several other states
have launched yard and roof cleaning
campaigns to combat the disease.
Riviera Nayarit's tourism video to the world....includes
guayabitos and Boca Naranjo
Click the ad to go to our site
San Blas Isltias
Photography by Omar Juarez
Chacala Restaurant accused of
poisoning pets
(the name of the
restaurant has been removed by the editor, it is
posted as a warning to pet owners who visit
Chacala that they should use extreme caution)
Hello Bill ~ I would like to forward you some
information ...... I don't know if it is
appropriate for your newsletter or not.....I
would be happy to connect you with the couple
that was impacted yesterday &/or our Citizens
Action Committee President.....most locals like
me are really nervous about speaking out as we
have been threatened that our dogs are not safe
even in our homes & our yards....so please do
not use my name without my knowledge.....I am
just sending this info in hopes you would send
someone to interview some of use here in Chacala
regarding this issue.
Hello All ~ Just an FYI update on (name
withheld)......Yesterday the owners were
confronted by police, a complaint was filed, and
they admitted to the charge of distributing
poison in front of their restaurant. The
complaint was filed by a couple that recently
bought land here. They confronted the owners
when they found their cat dying on the beach in
front of restaurant and they also collected
poisoned samples of meat. Their little dog
(leashed) was also poisoned but they rush her to
the vet and are still hoping for the best since
it was ingested from a small amount collected on
her feet.
A Mexican neighbor shared with me that she saw
them throwing poisoned meat out from their
restaurant onto the Federal Zone beyond their FZ
area.....such that a person walking his or her
leashed dog or a child playing on the beach
could be effected....not to mention the
poisoning of the local fish & birds that get
primary or secondary poisoning from the
restaurant.
While this practice is not unheard of in
Mexico, it is not the view by most people
Mexican, American, or Canadian as
acceptable.....esp. when there are other
alternatives.....which have been offered on
numerous occasions.
Fortunately, these people are going to attempt
to follow through with this in a legal manner
but the chances of that going anywhere are
slim. Really the only power we have as visitors
and residence of Chacala is our power of
CHOICE. We can choose whether or not we support
businesses that openly poison animals. Do any
of us choose to support businesses that poison
children several times a month?
Hoping for CHANGE!
Name withheld
Another letter on the issue
Hi
I'm not
sure how much you get involved in causes,
but I feel that I have to try to do my best
to put out a warning about something that is
going on at (Name withheld) Restaurant in
Chacala. I am worried that a child will be
next, as the owner is throwing poison out
and killing people's pets on the beach
there. This is very scary to me as I have a
vacation rental and there are more often
than not very small children that stay and
they go and play on the beach there. Also,
some people bring their pets, as my place is
pet friendly. I am going to attach a letter
that I received today from a concerned
member of the community and if there's
anything you can think to do about this
business, that would be great as your
publication is so widely read and maybe we
can do something about this if the business
gets a little hurt? Name withheld
Two Tall Blondes, a Fat Cat Named Whiskey and a
House on a Hill in San Pancho... Eileen Pierce - PVNN
Eileen Pierce tells
the story of how she and her lifelong
friend Tory came to purchase a small
house on a hill overlooking the small
fishing village of San Pancho Nayarit
and turn it into an enchanting vacation
getaway with spectacular views that's
known today as The Inn at San Pancho.
Tory and I, friends for three decades, had been
sitting on Don Roberto's lower veranda for 10
minutes. The real estate broker and The Don
were old friends, their rapid fire conversation
in Spanish was full of laughter and bold
exclamations neither of us completely
understood.
"So, what do you think," I asked Tory, watching
another real estate agent and his clients
standing on the side of the house hungrily
taking in the view. It was spectacular.
"It's a no-brainer," she answered, barely
glancing away from the swaying palms, the giddy,
sparkling sea, the mountains swathed in jungle.
I turned to The Don and, with a heart as full as
a ripe mango, announced, "We'll take it!"
If you ask me how long it took to decide to buy
Don Roberto's house, I'll tell you ten minutes.
Tory would probably say a half hour. But neither
of us would argue about the fact that it had
been a decision made with our guts, not our
heads.
A day later we plopped down a hefty deposit and
flew home.
"Did you check the water pressure?" I asked Tory
somewhere over north central Mexico.
"No. Did you?"
"No," I admitted. "What about the electricity?"
"What about it?"
"Well, is it wired for air conditioning, 110 or
220?"
"Who knows?" she said.
"What were we thinking?"
Tory smiled. "We weren't...we were too busy
looking at the view."
Careless buyers, you might think, as I'm sure
some of our family and friends did. We were two
tall blondes on a search for yet one more great
adventure. The word "crazy" did slip out of some
peoples' mouths, while others used the euphemism
"brave."
But they hadn't sat on Don Roberto's veranda on
a sunny January morning wrapped in blue sky and
sweet breezes watching hawks sail by at eye
level. The house was a concrete block, plain and
rather small with a one bedroom apartment up, a
second one down.
The splendid view, like a chic black evening
gown on a dowdy old lady, was far too good for
it, and the location, above the pueblo on a
gentle hill, was perfect with shops, restaurants
and San Pancho's lovely mile-long beach a short,
easy walk away. As Tory so wisely said... "a
no-brainer."
We found our contractor Beto through friends of
friends, met him on a jobsite in Sayulita. He
did not speak English, but had a natural sense
of proportion, an eye for the curve, a longing
for vistas, a self confidence that demanded
perfection and commanded a loyal group of 17
Mexicans who seemed more like an army of
worshipful warriors than a construction crew. No
kidding, the guy is amazing.
What did Tory and I know about building? A bit.
My dad was a contractor, and my brother, who
owns his own construction company, built Tory's
house in the Berkshires. Of course, having a
genetic link to contractors is about as helpful
to building a house in Mexico as a how-to guide
for walking on water.
An emotional mid life tsunami swept Tory away to
nursing school, and I stayed behind with my fat
cat Whiskey, a fistful of pesos, and Beto, who
had drawn up the plans for our house in a lined
Daffy Duck notebook.
Trust is a strange thing. Sometimes you have it,
sometimes you don't. Mostly, as a couple of
therapists were quick to point out, I had "trust
issues." But for some reason, Beto, who looks
and swaggers a lot like Charles Bronson,
instilled a sense of trust in me.
He didn't smile much, and I never really knew
what he was thinking, or for that matter, what
he was saying. But I'd signed up for the ride
and when he told me one afternoon that he needed
$26,000 pesos for "concreto y materiales" by the
next day, I nodded my head and drove to
Vallarta. I brought him the money the next day
in a bulging McDonald's bag the bank teller had
retrieved from her garbage pail. He scribbled a
hasty receipt on a page from the Daffy Duck
notebook, and went to work.
Beto demolished the interior of the house,
tearing up the floors, discarding the plumbing
and electric wiring, smashing the built in beds,
the cement sofas and the kitchen counters. He
replaced the roof, tore up the tile on the
floors, arched the windows and doors, and
welcomed Mexico in.
We'd told Beto before we hired him that we
wanted four casitas set around the pool. I
thought I had made it clear that the pool should
go in the front of the house, but one day I came
back from the beach and found him excavating in
the back. I stumbled across the rubble from the
torn up sidewalk and asked as nicely as I could,
"What's with the hole?"
"It's for the pool, Señora."
"The pool? The pool?" I sputtered in broken
Spanish. "But the pool is supposed to be over
there, in the front..."
Beto smiled, "No, Señora, the pool must go here.
And we need to talk about the retaining wall."
"What retaining wall?"
"The one you need to secure the pool, Se
ñora."
I knew from the start I would never be able to
argue with Beto. For the next few weeks, I stood
on the second floor veranda - a spot forever
known as my Evita perch - and watched as
he brought in trucks of landfill, built a
massive stone wall, and as a jeweler would set a
fine diamond, placed the pool elegantly in the
middle of the hill he had created and secured.
I was to know Beto's true genius several months
later when floating around in the finished
product, watching the world turn gold in the
magic hour, I realized I could watch the sunset
and the moon rise at the same time. With Beto,
every decision was about the view.
He eventually chose to place two of the casitas
one atop the other at the front of the property
where they offered ocean vistas and fresh
breezes. No building blocked any other, no walls
stood in the way, even the palm trees were
considered, the graceful arches in each door and
window taken into account.
One day, friends who own the Casa Obelisco, a B
& B in town, stopped by to see how the job was
progressing.
"How are you going to enclose this front porch,"
Barbara asked, waving an arm toward an
unfinished Casita Agave.
"I'm not sure what Beto has in mind," I
answered.
"Where is the cistern going?" she asked a few
minutes later.
I shrugged, "Don't know...But I'm sure Beto's
got a plan."
"How large will the deck area around the pool
be?" she wanted to know.
"Listen," I finally said, "I have to be honest,
I've turned the project over to Beto."
"All of it?"
"Yeah."
"Probably a good idea," she finally said,
laughing. "I mean what the hell do we know about
building a house in Mexico?"
In the beginning, Beto suggested we hire one of
his crew to sleep on the job site, guarding the
building materials that were piled up all over
the place. He chose Geronimo, a friendly member
of the crew who greeted me with a smile whenever
I saw him.
I discovered from another guy on the crew that
Gero loved gardening. A smiling gardener seemed
like a good plan. I asked Beto how he'd feel if
I hired Geronimo. Beto assured me Gero was one
of the best workers he had, but he wouldn't mind
one bit if I wanted to offer him a job.
Gero showed up with his wife and niece for the
job interview. He's been here ever since. He is
my Gero (pronounced "hero"), planting,
repairing, maintaining, and caring for the Inn
at San Pancho. Beto visits now and again, and
recently built an enchanting round casita, our
fourth, with a perky palapa roof and wrap around
windows with... what else? ... spectacular ocean
views.
A
co-owner of the Inn at San Pancho, Nayarit,
Eileen Pierce is a former staff writer and
columnist for the Berkshire Eagle in Pittsfield,
MA and in the last few years was the
PR/Marketing Director for the Berkshire Theatre
Festival in Stockbridge, MA. The co-author of
the 2005 Fodor's Guide to the Berkshires and
Pioneer Valley, Eileen continues to freelance
for various publications, including the
Reproduction:
Jaltemba Bay Animal Rescue
Advocating
humane and healthy practices for animals in the Jaltemba area by
promoting health, education, sterilization, adoptions, foster care and
positive relationships with animals and their owners.
December 2006 to June 2009: Two and a half years, 7 clinics
and more than
1,150 animals spayed
or neutered in the Jaltemba Bay Area!!!
Dog toys
Tennis balls are considered by many to be the ultimate dog toy. They are
cheap and dogs love them. But, they can be a hazard. They are abrasive.
Tennis balls are covered with a fiberglass material (check) designed to
withstand the abuse of tennis courts. Unfortunately, they act like
sandpaper on the teeth.
When a dog catches and carries a tennis ball, the teeth that put
pressure on the ball are the large protruding canines. The tips of these
teeth are the first to show wear. The factor that determines if there is
a problem or not is the rate of wear on the teeth, what we call
attrition. With low attrition, the enamel is first worn, exposing the
dentin. This dentin becomes hard and produces reparative dentin to seal
the tooth surface.
As the tooth continues to wear, the dentin barrier recedes but remains
intact. This dentin can be seen as dark spots on the teeth, but it forms
an effective seal, protecting the tooth from bacterial invasion and
infection. Slow steady wear can turn the teeth into tiny nubs.
If the wear (attrition) is too fast, the dentin is unable to harden in
time and this leads to exposure of the pulp cavity to bacterial
invasion. The pulp cavity contains a rich collection of blood vessels
and nerves so it can be painful when it becomes infected.
Besides causing tooth pain, the infection can move to the end of the
root, creating a tooth abscess. The pain it generates is often difficult
to detect in a dog. In fact, it may only become evident after an
infected tooth is removed – the dog may suddenly become more active and
playful. A root abscess is diagnosed by taking a dental radiograph of
the tooth in question.
The question is, what can we offer our dogs to chew or play with? For
chew toys, try CET chews which are treated, flat rawhide. For a ball,
look for an orange hockey ball, available at Canadian Tire stores for
about a dollar.
This paper was compiled by Dr Jeff Grognet DVM, BSc (Agr) of Mid-Isle
Veterinary Hospital in Qualicum Beach, and he has kindly allowed me to
share this information with you.
Many thanks to Jeff for allowing us to share his expertise.
Animals for Adoption:
Our tiny
shelter is full and we need help finding homes for the
following animals.
The Story
of Muffin:
Muffin is
a maltese/poodle who at just weeks old arrived at our shelter.
It soon
became apparent that she had major problems with her hind legs as she
could only drag herself by using her two front legs.
When we
took her for X-Rays, we discovered that she has no joints in her hips or
knees, probably as a result of a genetic defect.
So along
came wonderful Sarah, with a background in education and in particular,
working with challenged children.
Determined
to help Muffin, Sarah designed this little wheelchair to help Muffin
develop enough muscles to eventually use her hind legs to walk.
The back
straps support her weight helping her move her legs along with her front
ones. She is improving!!!
The vet
believes that Muffin will walk, albeit, with a VERY strange gait.
Muffin is up for adoption if you know anyone with a HUGE heart!
Other dogs
for adoption:
This little neutered male is approximately 8 months
old. He is very
playful and full of life!
ill and can no longer care for him. He was then adopted out but the new
owner
left
Rocky to fend for himself in the streets of La Penita when he went
travelling.
Amazingly the first owner spotted Rocky roaming the streets and turned
him over to our rescue facility here.
Little Sombrita was thrown away because she was pregnant.
She will soon be fixed and hoping for a new forever friend. This young Cocker mix, 1-2 years old is gentle, small & loving.
Bala is a fixed Female, vaccinated, and now socialized and friendly.
I call this sweet little 1-2 yr. old girl Yoda. She is spayed.
Miss Winky is a perhaps 6 month old sweet, fairly small & fixed Female.
A big dog attacked her when she was only 6 weeks old and she had to
have her eyeball removed and eye socket stitched up at our last clinic. so she has a permanent -- wink!
Miss Winky needs to go to a family that will love here and accept her disability.
She really does not notice! Full of sparkle and energy .
Fidoman is not yet fixed but is apparently healthy and not mean. He's
med. sized.
Canada is now requiring visas for Mexicans
travelling to Canada. Their reasons are that they had too many
refugee status applications and it made their office too busy. They
had approximately 9400 refugee applications of which they approved
11%. They are now requiring any Mexicans entering Canada for any
reason to have a visa. The cost of the visa is from $75.00 to
$150.00 and it takes weeks to get it. Only the Canadian Consulate in
Mexico City is processing the applications. The applications are
difficult to get and must be downloaded from the web. If you do a
search it will not come up with the page. I spent hours trying to
download the application to see what was required. I finally
contacted my local MP office. They said they have had lots of
complaints and were passing them on to the minister responsible. I
think his name is Kenny.
I looked at the application and it doesn't look
very complicated but they ask for further documentation. The
following is a list I received from the MP's office--
They should also include a letter outlining the
reason's they must return to Mexico with documentation to prove
I.e.: employee letters or contracts stating their requirements to
return, pictures of the applicants with other family members
indicating who they are and relationship to the applicant,
grandchildren, husbands, other children, etc. Property, and any
other information required in the application. If there is any other
documentation to prove their need to return it will be helpful.
So, not only does the applicant have to purchase
a passport, visa, pictures but they have to have a camera to take
pictures of relatives, own property, have a job with a contract,
list their education status and may be required to have a medical
examination, among other things. This is so they can purchase an
airline ticket that flies them over the US, unless they apply for a
visa there, and pay more for the ticket.
We complain about having to fill out a visa
application on the plane or when driving into Mexico. It costs
around $25.00, is good for 6 months and is a simple application. For
FM-3s the application is a bit harder but nothing like the Canadian
one. Also, the applications to come into Mexico and for FM3s are in
English and Spanish. The applications for Canadian Visas are in
French or English.
I am embarrassed for Canada. At a time when we
need tourism and we need to keep our relationship with Mexico
friendly we are kicking the people that want to come to Canada to
see our beautiful country. Because a relatively small amount
of people are abusing our immigration laws we are imposing hardship
on all of its
Citizens.
D Clippingdale
HOMESICK
It is just great reading the
Jaltemba Sol… makes us want to get back to La Penita asap..
Keep up the good work!!
Donna Steensma
THANKS
Dear Bill and Dot,
Thanks for the Jaltemba Sol. We read it every week and count down the
days until we get there. Cannot believe you guys put in so much work for
the community.
See you when we return.
Pat Jenkins
Mexico Property Ownership: IRS Foreign Trust
Reporting Requirements John Dillinger - wordpress.com
go to original
We no
longer have the a kinder and gentler
IRS that resulted from 1998
congressional mandates. Instead, we
have an IRS that needs to bring in
money – U.S. DEFICIT!
Over the last few months I have received
many inquiries concerning the issue of
owning a FIDEICOMISO and being compliant.
As such, let me share with you the most
frequently asked questions (FAQ): Q: Why Doesn’t Everyone with a
Fideicomiso Know About This? A: Good question. When I went to a
seminar on buying property in Mexico, my
question was a little different: Why weren't
the IRS Foreign Trust Reporting requirements
being addressed at a seminar on how to buy
property in Mexico? When I discussed this
with other CPAs at the seminar (who
specialized in Financial Audits, and knew
little about tax) one said he was not sure
of the reporting requirements but that even
TurboTax asks whether or not you have a
Foreign Trust. Shouldn't your CPA be asking
you better questions than TurboTax?
A typical "tax organizer" provided by your
CPA asks whether you have a foreign account,
trust or business, because Schedule B, of
Form 1040 has a section asking about Foreign
Accounts and/or Foreign Trusts. Schedule B
says that if you answer "yes" regarding
Foreign Trusts, you may be required to file
Form 3520. My contacts at the IRS think that
most tax preparer's software is defaulted to
answer "no" to these questions, and suggest
that these defaults be removed.
However, I think the biggest reason you
didn't know about this is because US Tax law
is extremely complex, and the more Congress
tries to simplify it, the more complex it
becomes. I used to be able to prepare a tax
return without a computer before the Tax
Reform Act of 1986 attempted to simplify the
tax code. Just say no to tax simplification,
it only serves to make things more complex. Q: Why Doesn't My CPA/Tax Preparer
Know This? A: CPAs tend to be a conservative
breed. Resistant to change, many seasoned
CPAs continue to practice under the belief
that as generalists, they can help their
clients with all aspects of accounting and
taxation. Today, that is no longer possible.
As a prior IRS auditor, I witnessed too many
taxpayers hurt by their CPA's refusal to
admit that they cannot be expert in every
aspect of tax and accounting.
While being trained as an IRS Agent, a
manager stated that tax law is complicated.
Sometimes you have to put your hand on your
head, turn around twice take three giant
steps and make sure to ask "Mother, may I?"
CPAs cannot be expert in all aspects of tax
law, it is far too complex. The more
specific an area of tax a CPA specializes
in; the more accurate advice you'll receive.
In addition, a specialist can complete the
work more quickly, which translates into
lower fees charged to you. Q: If Nobody Else is Doing This, Why
Should I? A: Once the IRS announced their
Offshore Voluntary Disclosure Program, March
23, 2009, foreign reporting requirements
began receiving greater press coverage. When
the program was announced, all late forms
were required to be sent to IRS Criminal
Investigation with mandatory penalty
frameworks that had no reasonable cause
exceptions.
I believe my repeated communications with
the IRS helped provide the opportunity for
those who did not know they were supposed to
file Forms 3520 & 3520-A do so without fear
of penalty. However, the IRS is only
currently granting this relief until
September 23, 2009.
If and when the IRS discovers that you have
not filed the required forms, there is no
guarantee of penalty relief. Now that the
public is being made aware of the filing
requirements, if you don't file, there is no
reasonable cause exception. In fact, the
reason for not filing would be considered
"willful neglect." You now know that you
were and are required to file, and did not. Q: Why Does the IRS Think that a
Fideicomiso is a Trust?
In 1996, Congress changed the laws defining
a "Foreign Trust." As of 1/1/1997, any trust
is a US person if a court within the US is
able to exercise primary supervision over
the administration of the trust.
Unfortunately, a Fideicomiso is not
primarily supervised by a US Court.
Therefore, it is a Foreign Trust.
The IRS will not provide a blanket exception
for Fideicomisos, as the exception could be
used against the IRS for those really trying
to hide income and assets from the IRS.
However, the AICPA (American Institute of
CPAs) has being trying to get the IRS to
relax the filing requirements for
Fideicomisos. Currently, the AICPA has put
the issue on the back burner.
Remember, we no longer have the a kinder and
gentler IRS that resulted from 1998
congressional mandates. Instead, we have an
IRS that needs to bring in money – U.S.
DEFICIT!
For example, there are certain tax benefits
for Real Estate Professionals. A few years
ago, the IRS began targeting California Real
Estate Agents and claiming that they were
not Real Estate Professionals unless they
were also brokers. This is due to a
technicality in tax law. Remember, if the
IRS was playing "Mother, may I?" a
California Real Estate Agent, took two giant
steps, instead of three. Therefore, no tax
benefit allowed.
The IRS recently lost this argument in Tax
Court. However, since the tax liability was
too small, the case cannot be used as
precedence, and the IRS is continuing to
state that a California Real Estate Agent is
not a Real Estate Professional, unless they
are also a broker.
For now, a Fideicomiso is a Foreign Trust.
The failure to file Form 3520 and Form
3520-A can result in huge penalties. I
suggest filing, while you can. Q: If I Call the IRS, Why Can't They
Give Me An Answer?
A:
Click HERE to see an article, which states
"you get what you pay for." Q: Should I Hire an Attorney? A: If you have not filed any of the
required foreign reporting tax Forms: 5471,
5472, 926, 3520, 3520-A, 8865 or TD F
90-22.1, and you have any unreported taxable
Foreign Income, you should hire an attorney
that specializes in the Offshore Voluntary
Disclosure Program. If the trust had no
taxable income, or reported the taxable
income but not the required Forms, a CPA
that specializes in Foreign Reporting should
be able to help you become compliant. John Dillinger, CPA has been helping
businesses and individuals with tax planning
and compliance, individual tax preparation,
IRS representation and international tax
issues for over 25 years. Prior to starting
his own CPA firm, he worked in International
Tax at the "Big Four" accounting firm,
PricewaterhouseCoopers and as an Internal
Revenue Agent with the Self-Employed/Small
Business Division of the Internal Revenue
Service. For more information visit
dillingercpa.com.
Investing South of the Border im Scherrer - PVNN
August 07, 2009
Jim Scherrer, a Houston entrepreneur
who retired to Vallarta ten years
ago, shares his experiences with
other baby boomers who are
considering Retirement in Mexico.
Click HERE for more articles by Jim
Scherrer.
Those of us that have been fortunate
enough to be invested in Mexico during the
past decade have fared very well. Even
though we’ve felt the impact of the
financial downturn during the past couple of
years, our Mexican stocks and Mexican
properties have more than doubled in value
while those in the US have lagged well
behind.
Let’s start out by assuming that you’re a
pretty savvy investor; your 401k, IRA, or
personal investments have kept up with the
S&P 500 average during the past ten years
and you’ve lost only about 35% of your
life’s savings!
Did you realize that the Mexican Exchange
Traded Fund (EWW) which represents the
Mexican stock market, even though it was
annihilated during the current recession
along with all other markets throughout the
world (but is recovering rapidly), has
advanced by 200% during the same time frame?
In other words, $100 invested in the S&P 500
in 1999 would now be worth $65, whereas if
it were invested in the Mexican EWW fund it
would now be worth $200.
Please refer to the ten year graph below in
order to see the comparisons between these
two areas of investment and perhaps you can
speculate as to where might be the best
market to place your next bet!
One of the most significant reasons for this
steady and rapid growth in the Mexican stock
market (Bolsa) must be attributed to the
policies of the new governing party that has
been in control since 2000. Mexico has been
governed by a couple of pro-foreign
investment Harvard alumni during most of the
timeframe shown above and will continue
under the same leadership for at least
another three years. The PAN party, led
first by President Fox and currently by
President Calderon, has brought Mexico from
a Third World Country to a Newly
Industrialized Country standing in a matter
of seven short years. Among their numerous
accomplishments, they have cracked down on
corruption, have promoted free market
capitalism while maintaining a relatively
firm peso/dollar relationship, and have
elevated tourism to the top of their list of
strategic objectives.
We have lived in Puerto Vallarta during the
entire ten year period and have witnessed
the changes and growth firsthand. As the
economy has boomed, unemployment in Vallarta
has been virtually eradicated while the
population has doubled, prices for
materials, labor, and land have tripled, and
of course, real estate prices have also
tripled.
10 Year Graph of
SPY versus EWW
Now, let’s compare this growth and real
estate value appreciation in PV to what has
been experienced in the US. The latest
government released graph from the Federal
Housing Finance Agency (FHFA) shows that
average housing prices in the US appreciated
by nearly 70% from 1999 through 2006. Since
then, the rate of appreciation has dropped
precipitously until the fourth quarter of
2007 when values actually started
depreciating. Throughout all of 2008 and the
first quarter of 2009, prices have plummeted
by about 10% and as you can see in the
graph, we can project prices to fall by
another 5-10% before they once again start
appreciating. In other words, the average
investment in housing in the US made 10
years ago will have increased in value by
40-50% by the end of 2009. Even though
housing values have recently been crushed,
real estate has still way outperformed the
stock market during the past ten years;
hopefully, your real estate gains have more
than offset your stock market losses!
With the US real estate market currently
experiencing a serious recession, no real
appreciation in housing values is expected
for at least two more years. In summarizing,
most Americans have enjoyed roughly a 40-50%
gain in their property value over the past
ten years and can expect the equity in their
residence to be, at best, essentially dead
money for the next couple of years.
When we compare the above data to what we’ve
experienced in Vallarta, where real estate
values have tripled during the past decade,
we can only thank our lucky stars for
letting us be among the first to participate
in the ongoing land rush in Paradise!
Fortunately for the about-to-retire baby
boomers, it’s not too late.
Due to the extreme demand in second homes
and retirement properties in resort
destinations, Vallarta has witnessed an
explosive ten year period of growth. So much
so, that with the current global recession,
the developers of the large condominium
projects requiring long term planning,
financing, and construction have been caught
totally off guard. Once they committed, most
of them (the reputable and fully capitalized
ones!) felt it necessary to complete their
projects regardless of sales. Consequently,
with the recession driven reduction in
demand and a supply of more than 7,000
units, prices for new condos are at a
bargain basement level with some of the
developers selling their surplus inventory
at not much above their cost. This is truly
a buyer’s market in PV for new condos
however this supply/demand imbalance has had
minimal effect on the value of existing
condos.
The situation regarding the resale of
existing homes and condos south of the
border is entirely different than in the US.
In Mexico, there are seldom any promotions
or transfers requiring a housing upgrade or
relocation, i.e., business related issues
almost never require the sale of a resort
property. Also, very seldom do owners decide
to upgrade or downsize once they own a
retirement property. More importantly,
almost all real estate purchases in Mexico
have been done on an all cash basis and
therefore, regardless of the economy, there
are no foreclosures on these fully owned
properties. Mortgages became readily
available in Mexico about five years ago
however they require at least 20% down and
substantial documentation proving one’s
ability to pay. (Sorta like the good ol’
days in the US!) With this kind of
financially solid buyer and this level of
equity, there are virtually no foreclosures
in Mexico. Although the rate of sales of
existing properties has slowed to a snail’s
pace, in the absence of foreclosures, prices
of resale properties have held up fairly
well; certainly not plummeting as in the US.
In summarizing, those of us that have been
fortunate enough to be invested in Mexico
during the past decade have fared very well.
Even though we’ve felt the impact of the
financial downturn during the past couple of
years, our Mexican stocks and Mexican
properties have more than doubled in value
while those in the US have lagged well
behind.
As we look to the future, we see very
promising growth in the Mexican Bolsa as
well as in Mexican real estate sales. In
fact, FONATUR, the Mexican Tourism Board is
still forecasting explosive growth in the
Nayarit Riviera area, just north of Puerto
Vallarta, during the next decade; only time
will tell. As they say, “past performance is
no guarantee of future results”! Assuming
the global economy eventually rebounds, it
is a given that the millions of baby
boomers, just starting to retire, will be
heading south for the benefits that Mexico
has to offer. When this stampede of boomers
hit the beaches in Vallarta, real estate
prices that have been essentially flat for a
couple of years, will continue escalating.
Aside from the fact that we have seven
months of perfect winter weather in PV from
November through May, when the average
temperature is 73*F with virtually no rain
and blue skies, we have eight magnificent
golf courses, hundreds of tennis courts,
world class deep sea fishing, hundreds of
fine restaurants, clean food and water, and
50,000 other gringos to play and party with,
our portfolios of stock and real estate
investments south of the border are “en
fuego”!
If you’re recently retired or considering
retirement in the near future, you really
ought to check out the investments that lie
south of the border; enjoy your retirement
to its ultimate, and put your dead money to
work for you in beautiful Puerto Vallarta.
The
founder of Puerto Vallarta Real Estate
Buyers' Agents (PVREBA), Jim Scherrer is a
retired entrepreneur who has owned property
in Puerto Vallarta for 24 years. Utilizing
his experience and extensive knowledge of
the area, Jim has written a series of
informative articles about travel to and
retirement in Puerto Vallarta, which you can
read on his website at
PVREBA.com.
Click HERE for more articles by Jim Scherrer.
Become a Friend of Nayarit on Face book
click here
The Poteats the Boznara and the Belitski"s on a wine tour in Ontario
Learn Spanish Today - Learn Spanish on-line for free, using interactive audio/visual lessons.
Photography by Bill Bell to view Mexico Photography click
below
Can you Speak Spanish? How long have you been studying
Spanish? Between high school classes, college classes
and you own efforts you could easily have a couple years
already under your belt. During this time you have
likely built up a good Spanish vocabulary, along with a
basic understanding of Spanish verb conjugation. But can
you speak Spanish?
Why is speaking Spanish
so hard? Would you feel comfortable approaching a native Spanish speaker
and starting a conversation? Why not? Why is it so hard to speak Spanish
evenBeginning high school
and college Spanish classes, as well as most self study Spanish courses
start off by teaching vocabulary and verb conjugation. You practice
speaking, but the focus is on the individual word or phrase. Lists of
words are memorized and tests are given on verb conjugation. So when it
comes time to speak, the words and phrases are separate in your mind. It
becomes a matter of trying to pull all the pieces together and form them
all into a sensible sentence, not just speaking.
The key to becoming more
comfortable in speaking situations is to practice and learn the
sentences as a whole, not in separate pieces. This way when you are
trying to remember what to say, the whole sentence pops in your mind,
not just one word. You will speak Spanish more correctly, more fluently
and more confidently than ever before.
The Visual Link Spanish
Course allows you to utilize this effective way of learning and practice
speaking Spanish. In our
free online demo lessons, you can see
how we utilize these strategies to truly teach you to speak Spanish. You
will be able to recall everything you learn and words will come into your
mind as a complete sentence not separate individual words. You will already
be on your way to speaking Spanish more fluently and more confident
Learn Spanish Today - Learn Spanish on-line for free, using interactive audio/visual lessons.
New 2009 Nogales to
Puerto Vallarta Road
Log and Driving Guide
We are
confident that our road logs and driving guides will make your highway
experiences just that much better and easier.
Regardless of whether you are driving an RV or a suburban, a bike or a pick-up, our road logs will assist your journey. Even 20
year veterans of the route have benefited from the information.
We decided to present the road from a driving perspective going SOUTH. When
your are looking at the Log, you read from the bottom of the page and read
up. The Pacific Ocean, for example, would always be on your right, just as
you would view it from your driver's seat.
The KM markings are the markings that you will see as you drive. It doesn't
matter if your vehicle reads in miles or kilometers. You just read the signs
on the road to get your bearings. Sometimes one highway combines with
another and old kilometer signs are left up. Not to worry, just continue to
read the guide.
Some of the best navigation points are the Pemex Station numbers clearly
marked on all gas station signs. Topes (Mexican speed bumps) are marked in
the guide just to remind you to go slow. We included Military and
Agriculture check points even though we know these can change frequently.
(Generally they are on one side of the state border or another between the Mexican
states.)
How to download and buy the Road Log
Click on the buy now button and you will be directed to a merchants page.
Once you pay for the road log you will redirected to an easy to use download
page where you will be able to receive your product immediately. Now only
$8.99
Linda
Neil is the founder of The Settlement Company,
which specializes in real estate transfers,
escrows, and consultations. Just added as a new
service, Settlement will now prepare monthly tax
declarations, file them and perform additional
essential landlord accounting services. For
reprints of this article or for further
information on tax paying services, please
contact The Settlement Company at
01-800-627-5130 if in Mexico; or 01-877-214-4950
or 011-52-612-123-5056 if calling from outside
Mexico. Email: info(at)settlement-co.com,
Website:
A
co-owner of the Inn at San Pancho, Nayarit,
Eileen Pierce is a former staff writer and
columnist for the Berkshire Eagle in Pittsfield,
MA and in the last few years was the
PR/Marketing Director for the Berkshire Theatre
Festival in Stockbridge, MA. The co-author of
the 2005 Fodor's Guide to the Berkshires and
Pioneer Valley, Eileen continues to freelance
for various publications, including the
The
founder of Puerto Vallarta Real Estate
Buyers' Agents (PVREBA), Jim Scherrer is a
retired entrepreneur who has owned property
in Puerto Vallarta for 24 years. Utilizing
his experience and extensive knowledge of
the area, Jim has written a series of
informative articles about travel to and
retirement in Puerto Vallarta, which you can
read on his website at
Learn Spanish Today 
- Learn Spanish on-line for free, using interactive audio/visual lessons.
