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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10100
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Can you answer some question re: sale of a Mexican tim

Customer Question

Hi, can you answer some question re: sale of a Mexican timeshare?
Submitted: 7 months ago.
Category: Tax
Expert:  Lane replied 7 months ago.
Hi - I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University’s Stetson School of Business and Economics, as well as CFP® and CRPS designations. I've been providing tax and corporate advice since 1986. - I can help here...How can I help today?
Customer: replied 7 months ago.
I have specific questions re: sale of a time share in Mexico. Forvexample Is a S.R.E. Visa permit required.Would I have to pay a 15%tax on the sale proceeds to Baja California Sur? Must I pay $5500. for recording fees to the Mexican Tributary Administration of the Federal Government?
Expert:  Lane replied 7 months ago.
While I'm waiting I'll provide some general information ... sale of a timeshare is considered personal use property by IRS....And although a gain on sale must be reported (please don't shoot the messenger here) losses on personal use property is not tax deductible (... one of the bigger IRS "gotcha's" out there_....Another important element to this question is that all worldwide income (ordinary income and capital gains as well) is reportable and taxable....Here's the IRS guidance on worldwide income: https://www.irs.gov/Businesses/Income-from-Abroad-is-TaxableHere's the guidance on Capital gains & losses: https://www.irs.gov/taxtopics/tc409.html...Now, if this is about the fairly rampant scam issues as it relates to time share sales in Mexico - I can help you with that as well. This came through the tax area, however, so I thought I'd start there
Expert:  Lane replied 7 months ago.
Ahhh, so this IS about the misrepresentation aspect ... No, most of these are references to taxes that don't apply ... and many times they use a part of a tax term or combine two terms that are really two different taxes, essentially, to make things sound legitimate
Expert:  Lane replied 7 months ago.
You might want to take a look at this: http://www.mexicotimesharefraud.info/
Customer: replied 7 months ago.
I don't want to pay $50 unless you have answers to my specific question. I don't care about any gain I may have on the sale.Are you familiar with this SRE visa pemit?Do these recording fees sound legit?
Expert:  Lane replied 7 months ago.
From another source:...http://insidethegate.com/how-to-spot-a-scam/the-mexico-escrow-scam-2/...omeone contacts you and tells you they have a buyer/renter for your Mexican timeshare who is willing to pay you more than you originally paid for it. THE TRUTH: Sorry, but no one is going to purchase or rent your timeshare for anything near what you paid.Someone contacts you saying some branch of the Mexican Government has set up a fund to reimburse victims of timeshare fraud in Mexico, and you’re one of the lucky ones. THE TRUTH:There is no such fund! It is a bald-faced lie, no matter how legitimate their documents look!AND THE BIGGEST RED FLAG: YOU ARE ASKED TO BANK WIRE FUNDS TO AN ESCROW ACCOUNT IN MEXICO (OR SOME OTHER COUNTRY) TO PAY FOR SOME SORT OF FEES AND/OR TAXES. THE TRUTH: The “escrow account” is fraudulent; the fees/taxes are fraudulent; once you wire the money you will never get it back.
Expert:  Lane replied 7 months ago.
I've already answered that question ... They are NOT legitimate
Expert:  Lane replied 7 months ago.
let me re-paste ... You may have missed this ... our post crossed "in the mail" so to speak...Ahhh, so this IS about the misrepresentation aspect ... No, most of these are references to taxes that don't apply ... and many times they use a part of a tax term or combine two terms that are really two different taxes, essentially, to make things sound legitimate
Expert:  Lane replied 7 months ago.
These scams have become so rampant that a secondary industry has begin to spring up that advertise to those scammed that they can help them recover their money (My speculation is that these are scams as well)
Expert:  Lane replied 7 months ago.
For example, if one googles Mexican timeshare, here are the first four things that result (all ad's by the way ... none of these are governmental units ... The mexican Government has been ineffective here, to say the least)...
Expert:  Lane replied 7 months ago.
Fight Back Against Scams - timesharecancellation.com‎Adwww.timesharecancellation.com/‎Don't Live With a Timeshare Scam, Timeshare Attorneys Can HelpServices: Timeshare Cancellation, Timeshare Litigation, Timeshare Rescission, Insurance ClaimsGet Out Of Your TimeshareOur Legal TeamThe Timeshare ProblemMexico Timeshare Scams‎Adwww.timesharecancelprofessionals.com/‎Legal Timeshare Cancellation 7 days W/100% Money Back GuaranteeTru Cost of TimeshareTestimonialsServicesGuaranteeTimeshare frauds - aconsumercredit.com‎Adwww.aconsumercredit.com/‎We help timeshare owners like you get rid of timeshares legally.Get out 100% Guaranteed · Live Chat Counselors · Free consultationTimeshare Fraud - Timeshare-Answers.com‎Adwww.timeshare-answers.com/‎Fight Back. We Get Timeshare Contracts Cancelled. Call Us Now.50,000 Consumers Helped · Start For $0 Today · Licensed, Bonded, InsuredTestimonialsTru-Cost Of TimeshareFAQServices
Expert:  Lane replied 7 months ago.
To recap, no the SRE visa permit fee and the various and sundry combination of tax and cross-border terms are all "creative marketing," to put it nicely
Expert:  Lane replied 7 months ago.
let me know if you have questions...Again, I am just a verified expert user here (a user just as you, although with my credentials verified)... I hold law a law degree with concentration in corporate law, tax law, and estate. I have 30 years of experience and have clients representing 6 countries on three continents....I hope you'll rate me, using those stars on your screen, (that's the only way we get credit for the work here) based on thoroughness and accuracy, rather than any good news/bad news content ... But if there's something you don't understand, or if you have other questions about this, please let me know.......I reiterate, this is not legitimate...Thank you!Lane
Expert:  Lane replied 7 months ago.
Did you see my answer?