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I need to talk to other US home owners in MX about tax implications...Do I need to charge tax to my renters? And who in the states they might recommend for an experienced accountant? My property manager tells me that other US vaca rental owners do not pay taxes on income generated from their rentals??
 

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If you generate income from Mexico, Hacenda ( the Mexican IRS) will be calling on you for your share, Your property mananger is not being honest
 

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While countless foreign property owners from the United States in Mexico do not pay their required tax obligations to the IRS or Hacienda, they are committing tax fraud and not meeting their legal obligations to either the U.S. or Mexico. They are idiots.
 

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Do you have a visa with the right to work in Mexico? You are now a working landlord and require the correct visa, need to register with Hacenda and get an accountant to file your quarterly activity. Your primary financial responsibility is to Mexico .... and way down the line to the IRS

Damn those frickin Real-estate pen-dejos out for themselves

Bad time to be asking after the fact ... I'm sorry to say
 

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I need to talk to other US home owners in MX about tax implications...Do I need to charge tax to my renters? And who in the states they might recommend for an experienced accountant? My property manager tells me that other US vaca rental owners do not pay taxes on income generated from their rentals??
Greetings and congratulations on your purchase. If you receive your payments directly to your bank in the US via Paypal or bank transfer, you income should be taxable by the IRS. However if you receive your payment in Mexico in Mexican pesos, I believe you have a $90,000 deduction before your foreign income becomes taxable. I suspect you would need to pay taxes to the Mexican government though. This is just my opinion so check with an accountant; but shouldn't be difficult to clear up your questions and make your proper tax payments. Also keep track of expenses related to management of your property etc because these should be deductible.
 

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I need to talk to other US home owners in MX about tax implications...Do I need to charge tax to my renters? And who in the states they might recommend for an experienced accountant? My property manager tells me that other US vaca rental owners do not pay taxes on income generated from their rentals??
Welcome to the state of Q. Roo! Wonderful area, Tulum is beautiful. We live down the road a bit, between Playa del Carmen and Tulum.

You mentioned you were interested in contacting an experienced tax accountant in the US; we have been very happy with John Dillinger, CPA. I suggest you google him and check his website and his profile. This is his specialty, international tax law.

Many people do rent their places out but I suspect it is mostly without filing tax requirements with the IRS or the Mexican government. We choose not to do that because the penalty is quite considerable and it is a gamble we, ourselves, were unwilling to take. Rental agents charge a hefty management fee (as well as a cut of the profits or rental fee). Some folks who have rented their properties say they don't make a profit because the damages renters caused and the problems they created just made it unprofitable.

John Dillinger is located in San Franciso, CA and we do everything we need to do with him by e-mail, US mail, and phone. I think you will learn a lot from visiting his website. Send me a PM if I can be of further help (we've used him for several years now).
 
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