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Mexican Capital Gains Tax on Sale of House After It is Inherited

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Mexican Capital Gains Tax on Sale of House After It is Inherited

Post by Sideways on Tue Aug 11, 2015 5:07 am

Upon my death, I intend to leave my home here to my nieces and nephews; there are 6 of them. I will change my Mexican will next month to include this in it. I believe wills are still discounted in September.

In the US, the cost basis for heirs is the fair market value on the date of the death of the benefactor. Assuming they sell the house in short order, there's no gain to be taxed.

What's the rule here in Mexico for heirs as far as capital gains basis on an inherited house?

Someone advised me to change my deed and add all the nieces and nephews by name, but if I do that I think they'd end up with captial gains taxes in the US when they sell the house here because their tax basis (for US purposes) would be zero, since it would be viewed as a gift if I give them ownership before I die.


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Re: Mexican Capital Gains Tax on Sale of House After It is Inherited

Post by Twonk on Tue Aug 11, 2015 9:29 am

Why on earth would you ask such a question on this board when you will be sitting down with a Notario Publico next month to write up your will? Do you actually believe that the people on this board can give you better advice than he can regarding Mexican law? Really, think about it.

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Re: Mexican Capital Gains Tax on Sale of House After It is Inherited

Post by Intercasa on Tue Aug 11, 2015 9:42 am

Your basis is their basis.
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Re: Mexican Capital Gains Tax on Sale of House After It is Inherited

Post by Sideways on Tue Aug 11, 2015 10:23 am

Thank you Spencer.  

And to the other poster: I have never sat down with a Notario for my (and my late wife's) wills.  I go to an attorney who draws it up and sends it to the Notario for a final review and sign off.  

I do find that expat forums will get answers to questions such as mine, often someone will offer their own personal story for the same issue.  You are a 'newbie' and I suggest you keep an open mind.  The purpose of these boards is to share information which is only possible when one asks questions.  Really, think about it.

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