Once again the question of whether we USAmericans holding property in Mexico in Fideicomisos/Trusts are required to file Forms 3520 and 3520-A with the IRS.
TheTrust/Fideicomiso is a requirement of any property that is within 50(?) kilometers of the border or beach and purchased by a foreigner. This is the Trust/Fideicomiso for which we pay an annual fee to the Bank to manage and hold for us
Now this question is only about, NON INCOME Receiving Trusts. Obviously if you earn ANY type of premium/interest/income you must fill out the forms. There is also a deadline – one needs to file these required forms by September 23 to guarantee against IRS penalties.
Tom, being fairly pro-active decided to place a call to the IRS to get to the root of this debate.
Here is what he found:
The IRS has been deliberating as to how to handle the ownership of property via a fideicomisio/trust in MX and how it would be affected and/or reported if at all. As of today, and at this time, the IRS has not made a determination – and the forms 3520 and 3520-A do not need to be filed.. Once the IRS makes the determination it will be posted on their website.
I don’t know about the rest of you, but I make no income from my house. I don’t rent space in it, in fact I only pay out – I pay my yearly taxes, and I pay my yearly Fideicomiso fees. So shouldn’t I be getting a tax deduction?
Here is a private blog
with a lot of interesting information that you may read and assess for yourselves as to accuracy or validity. I make no recommendations or offer no opinions –
If any of you have any other info or updates please let us all know.
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