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Hi I am from Mexico city I had a mexican company, but in 2010

Hi I am from Mexico...
Hi I am from Mexico city
I had a mexican company, but in 2010 an hedge fund wanted to invest in my company, however in order for them to do so, they requested to open a LLC delaware company, so we did it, and then the Delaware company is the owner of the mexican one, and the hedge fund and me are the owners of the delaware company. The question is on 2012 I sold part of the delaware company to the hedge fund, Do I have to pay taxes for that transaction? I am foreign and live in mexico city?
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Answered in 6 minutes by:
4/30/2013
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,143
Experience: Taxes, Immigration, Labor Relations
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LEV :

Hi and welcome to Just Answer!
The Delaware LLC with several members (based on your information - there are two members - you and the hedge fund) - is generally treated as a partnership for US tax purposes. Because it is organized in the US - it is an US partnership. If you sold your partial interest in the partnership - you realized the gain equal to (the sale price) - (your basis).
That gain will be considered from US sources because that is US partnership - and will be your taxable income regardless in you are a nonresident alien. To report the sale transaction - you need to file US tax return as a nonresident - using form 1040NR.

Customer:

hi

Customer:

Lev, one question regarding your last answer

Customer:

Thanks for your answer, and what is the % of Tax do I have to pay, for that part of the company I sold, and if there is some how to pay less taxes?

Also the transaction was filled on November, until when am I suppouse to pay the taxes, and are there penalties for not paying on time?

Regards

LEV :

Generally - if you owned the property more than a year - the gain from selling the partnership interest is taxed as a long term capital gain - taxed at reduced rate - not more than 15%.

Customer:

great

Customer:

One more question

Customer:

if the company was sold on november 2012 when am I suppouse to pay the taxes to the irs? when is the dead line?

LEV :

If income was realized in 2012 - any tax liability is due by Apr 15, 2013.

Customer:

O my god I am out of time, now what is next or what can I do in order to do it? do I have to pay penalties? or interest for the taxes due?

LEV :

The first step is to prepare your tax return and calculate your tax liability if any.
Then - file your tax return and send a check to the IRS as soon as possible.
Penalty for late filing are 5% per month. Annual interest is based on the amount you owe - current rate is 3%.
You may ask the IRS to abate penalties. Attach a note to your tax return with explanation and provide reasons for filing late.

Customer:

can you help me to do that?

LEV :

Unfortunately - posts on this site are for general information, and are not intended to substitute for informed professional advice, and do not establish a professional-client relationship.
Rules on this site prevent me from contacting customers outside this site.
I may help by answering your questions - but may not prepare a tax return for you.

Customer:

ok understand

LEV :

Sorry if you expected differently.

Customer:

one more question: when the hedge fund invest on my company back in 2010 I did a small cash out, but I did not pay any taxes at all for that because I did not know it, what do I have to do? pay taxes for that, or just leave it like if I never got that money, sine is been all ready 3 years from that?

LEV :

If that was related to your Mexican company - that is not subject of US taxation.

Customer:

Yes it was related to my mexican company but first I transfer the company to the delaware company and after we made the selling stocks from the delaware company

LEV :

If the Delaware company is an LLC - there is no stock - unless you specifically choose it to be treated as a corporation - the LLC with several members is classified as a partnership for US tax purposes.
If you sold your partnership interest in the US partnership - your income is taxable in the US.

Customer:

ok and if I did that back in 2010, what do you recomend me to report the income, or just let it go? how many years has to pass in order for the IRS not to dig back in your information?

LEV :

According to the tax law - you need to report all your income - and I may not recommend you differently.
The statute of limitation for the IRS to assess additional tax liability is generally three years - however if no tax return was filed - the statute of limitation doesn't apply - and legally the IRS may assess tax liability at ANY time.
We may not know if they would - but that is possible.

Customer:

thanks for your help

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,143
Experience: Taxes, Immigration, Labor Relations
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