Surviving Yucatan

Abril, 2014

La Rambla

Plaça de Catalunya ~ SW Corner

… Is it this way?

or … Is it this way?

Go West (?)   young man…

(C. Colon is pointing at Sao Paolo o Rio)

Un plato de good fresh fish is always a welcome sight.

Sometimes the skeleton is on the outside…

Other times

All the panels are moveable persianas

Off in the distance …

Can you find Sagrada Familia ?

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

March 23, 2014
What do chemists think about as they drift off to sleep…

Merida’s heat has been building, and lately our upstairs bedroom/solarium has been getting hotter every night.    March in Merida generally kick’s-off the annual HOT season here, with temperatures rising through April,   to hit 104º – 115º F peaks in May.  Mid-June often brings a little relief with the start of Rainy Season – as the daily afternoon rains come in as ~ cool fronts ~  which is a great contrast to Washington DC and the Eastern Seaboard,   where afternoon summer showers mean steamy muggy nights of heat intensified by humidity.

Anyway, while lying in bed, sweating  …  trying to decide whether to turn on the clima, (AC),  I started running the number in my head for ~ how much “AA”  (“Aire Acondicionado“) costs to cool down our bedroom for a night.  ~

Short Answer:  As little as $4 pesos a night . . . or   over $100 pesos a night, ~ depending on your bedroom, ~ your air conditioner, and ~your lifestyle

For better or worse, figuring out your PPN ($pesos por noche) means we have to know:

~  How many hours will you run the AA por dia?

~  How cool do you want your room?    a.k.a.  What temp to set the A/C?
. . .continue reading here . . .

… And now you know what  chemists   think about   as they  drift off to sleep…

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Full Article can be read at:    Just how much does it Cost to Cool a Room in Mexico?
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

March 22, 2014
As we troll internet forums across Mexico, interesting topics pop up. Apparently, there is a documentary film making the rounds reporting Monsanto’s adventures in GMO agricultural products and Monsanto’s abusive practices of suing neighboring farmers when Monsanto’s GMO products jump to neighbors fields and enter our food supplies.

As a scientist, I am left wondering if Monsanto’s 3 decades of promises are valid or hollow**.

Before diving into the science and data, there’s also an interesting loose-end about Mexico supposedly banning GMO corn in Oct. 2013. The claim of a ban is not broadly true.

Note: Hawaii legally banned GMO corn in 2013, and France just banned Monsanto corn on March 15, 2014. http://www.huffingtonpost.com/ocean-robbins/huge-gmo-news_b_4129311.html and http://www.reuters.com/article/2014/03/15/france-monsanto-idUSL6N0MC0BR20140315

Mexico? Internet searches report country-wide “bans” that: “suspend all activities involving the planting of transgenic corn in the country and end the granting of permission for experimental and pilot commercial plantings”.

Unfortunate reality: There is no ban of GMO corn in Mexico. There was a fairly narrow judicial ruling by Amparo (similar to a Temporary Restraining Order), issued by a single judge, ordering only the temporary suspension of planting GMO corn in Mexico, to allow a group of other lawsuits to make their way through the Mexican judicial system.

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Back to our regularly scheduled program:
In gringo internet discussions, some people are still believing that GMO corn and GMO products work.
Does Monsanto’s GMO corn deliver on Monsanto’s broad promises?

**Decades of reliable evidence says each and all of Monsanto’s GMO promises are false:

Reality: “In the 20 years since GMO crops first came on the market, studies have found that they have led to higher pesticide use, and no meaningful improvement in flavor, nutrition, yield or water requirements. Instead, what they’ve created are plants that are engineered to withstand massive dosing of toxic herbicides, and plants that function as living pesticide factories. Monsanto’s Bt. corn, for example, is actually registered with the EPA as a pesticide. ”

Why report this?     It explains why governments are finally recognizing the real risks of GMOs,  and    it supports governments rejections of Monsanto’s decades of inflated false promises.

GMO corn does   not   use less water.    GMO corn does    not    give higher yields.    Other than GMO corn’s pesticide properties and its resistance to Monsanto herbicides,   GMO corn (like Monsanto’s GMO cotton et al) does   not  ultimately provide    any   of the promised benefits.

Ironically, even Monsanto’s top promise of lower herbicide usage is false.   In response to Bt Corn and other GMOs:   Nature has simply created  “super-weeds”  that require far higher amounts of herbicide spraying – leading to the highest levels ever seen of herbicide contamination in US and India’s rivers due to over-spraying required by GMO corn and GMO cotton.

GMO corn and cotton simply do not deliver on Monsanto’s decades of false statements and false promises.

http://www.nature.com/news/case-studies-a-hard-look-at-gm-crops-1.12907 and

http://www.greens-efa.eu/fileadmin/dam/Documents/Studies/GMO/TESTBIOTECH%20Cultivation_GE_%20plants_US.pdf

Conclusion: Since there is no long-term Mexican ban on GMO corn, there is still risk that Monsanto’s $$ payoffs to politicians can overturn the judges temporary amparo, resurrecting the risks of GMO corn to Mexican farms, farmers, and Mexican corn.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

March 19, 2014
Good economic news continues to roll in for the future of Mexico’s economy. After financial experts’ 2013 broad projections of Mexico as a top choice for personal investing for the next few years, Goldman Sachs and Nomura now predict that the Mexican economy will enter the top 10 largest economies in the world by 2020.

A combination of record exports,  growth of the US-Mexico trade relationship, plus commitments by Cisco, PepsiCo, Nestle, Pirelli, Vesta, and PEMEX to invest close to $10 billion in new operations in Mexico bolster expert opinions that Mexico has a bright healthy economic future.

A few facts:  Mexico’s record 2013 exports of $280.4 billion to the U.S. and imports of $226.1 billion from the U.S., point to a growing trade alliance that benefits both countries.  Automobile manufacturing, auto parts, and aerospace were the driving sectors for exports to the U.S.
Mexico’s solid fiscal and monetary policies have not only stabilized MXN peso values, but Moody’s Investors Service has taken notice and has increased – improved Mexico’s debt rating to “A3” from “Baa1”. This change ranks Mexico as second only to Chile in Latin America with this good rating.

Billions in heavy investment by in Mexico key international businesses have also been announced by a variety of industries.    Cisco, PepsiCo &  & Nestle plan over $7.3 billion expansions of their Mexican operations over the next five years – demonstrating further confidence in already robust Mexican consumer and industrial markets.

Specifics?    Over 50 Japanese companies have inked deals to expand operations in Guanajuato alone, resulting over $1.79 billion in planned investments to create 12,580 new jobs there.    Continuing to build Guanajuato’s manufacturing base:  Pirelli Tires is currently investing $1 million a week, of a planned total of $200 million, in its Guanajuato production plant based on strong demand.

High Tech, Aerospace & automotive industrial capacities also continue their already solid growth in states like Queretaro, bolstering Mexico’s economic future.   Vesta, a leader in wind power generators, declared investments of $400 million throughout Mexico in the next five years,  on top of their $60 – $65 million yearly investments in industrial plants in Queretaro’s industrial parks for the past 3 years.

The planned growth is not just from international players:    PEMEX plans 2 years of $600 million USD of investments to upgrade its ocean fleet, and    PEMEX has also announced service contracts for 42 ocean vessels for deep-water drilling and exploration to dramatically expand Mexico’s oil production over the next decade. Finally, Mexican companies ranging from Logistics to Foods and Mining plan $billions in capital investments to increase capacity.**

All in all:  Things look good for Mexico.

** http://bdp-americas.com/blog/2014/03/03/recent-and-upcoming-investment-in-mexico-24/#more-944
http://world-economic.com/articles_wej-328.html
http://www.elpasoinc.com/columns/local_columnists/article_4de83d8a-ad51-11e3-a3c8-001a4bcf6878.html
http://www.abqjournal.com/369839/biz/mexican-economys-growth-in-overdrive.html

Click to access mexicowhitepaper2013.pdf

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

March 13, 2014 RealtyTrac reported that US foreclosure filings fell 27% year-over-year in February to a new seven-year low. U.S. Foreclosure Activity Decreases to Lowest Level in More Than 7 Years

Why should we care?

As we described back in 2009, foreclosed homes are the last big piece of the economic recovery puzzle.   Since it takes roughly 2 years for governments to process foreclosure requests,  when a homeowner loses their job and stops paying on their mortgage,   the home does not hit the foreclosure market until 2-3 years later.  A foreclosed home then takes another 400 days (2013 average).  This means that the Bush deregulation-caused 2008 Fiscal Crisis damage and Bush deregulation-caused job-losses are finally (logically) resolving in 2014,  just as we predicted back in 2009  Merida Real Estate Predictions

Just what does this have to do with us foreigners living in Mexico? 
If you look back at our past articles, you find that the big backlog of foreclosed homes  were the last piece keeping unemployment high and keeping a lid on the economic recovery.   This means that the last big piece of uncertainty about personal finances for people considering retirement & visiting or moving to Mexico,  will diminish with decreasing unemployment and increasing home values.    With low numbers of foreclosed properties,  potential Boomer retirees will be feeling the optimism from the  personal wealth effects of  a stock market at all time highs,  fully-recovered retirement accounts,  ~ and ~ higher home values .

Remember the Baby Boomers?
Baby Boomers: Retirement? Sufficient Savings? Their Likely Effects on Mexico?  pointed out that there are roughly 40 million Boomers who will be retiring with substantial savings and nice homes between 2014-2030, which takes us back to the point of this post:   The PREVIOUS backlog of foreclosed properties weighing down home values were the last item causing lots of retirees worries about the economic future.

Now that the backlog of foreclosed properties is back down to a manageable level, we should see a nice surge of retirees checking out Merida,   Yucatan,  and the beach areas over the next 5 years => good growth in both tourism   and   in our real estate and rental markets from relatively affluent new-Boomer retirees.

Let’s make them welcome.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Having issues or questions about CURP ‘s ?   Here’s a useful link.
Pasos a seguir para obtener o corregir tu CURP

“Para mayor información comunicarse al Centro de Atención y de Servicios RENAPO al teléfono 01 800 911 11 11 (llamada sin costo).”

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

It is that time of year again. The time of year when our banks, employers, mutual fund companies send us notices of our income from last year (2013), which allows us to pay our annual tribute to the State and Federal Governments.

For CURRENT details, see our master article on taxes at: IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article

Brave readers who venture into reader’s Comments on other Yucalandia articles have noticed that there have been a spate of questions about tax issues for expats living and working in Mexico. This year’s questions have taken on more specific and detailed forms than ever, including Fideicomiso filing issues (3520 & 3520 forms), even to the level of requesting specific advice about their particular personal situations. Scary, nu ? Do we really have any business giving tax advice? … continue reading here

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Full Article can be read at:
IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Feb. 27, 2014
I stopped by the CFE office on Reforma and Avenida Colon yesterday to check our balance on our apartments and noticed something new: The CFE “Automatic Teller” machine has a new option in its menu for accessing your account. You can now use your new “CFE card” to enter your meter information and get your balance.

~ “Pago Programado” ~ Sounds cool, huh?

Electronic cards, like credit cards, are obviously always more cool than old junk like paper-statements, paper cash, and coins.

Computers and electronics always make our lives better, faster, cheaper,     no?

Still, my inner codger hesitated. … continue reading here

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Full Article can be read at: New CFE Cards (Listening to your Inner Curmudgeon)
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Feb. 14, 2014:

Lic. Spencer McMullin, a well respected Mexican attorney who serves expat community needs, has reported the following warning for owners of timeshare properties in Mexico:

Timeshare Real Estate Scams are Victimizing Owners of Mexican Timeshare Properties
“Multiple scams have been identified recently that have already cost people tens of thousands of dollars of their retirement savings. The scams, which seem to be copycats of each other, involve approaching people who own Mexican timeshare real estate by phone calls, mail or by email, and pretending to have ready buyers. The catch is that the prospective sellers are told they need to prepay some phony closing costs and other fees into a phony escrow account in the US, to be reimbursed at closing, which, of course, never occurs.  This occurs after they are sent a signed sales contract using the words “Guarantee” or “Guaranteed” to trick the seller into thinking that it is a sure thing.

The companies look almost legitimate on the internet—but not quite. They have clearly gone to some effort to build websites that look professional and have multiple references elsewhere. But the websites didn’t exist before last year. Their web sites show up on the internet as well as their company name but that only happens because they paid people to put their fake company name in directory listings on 50 internet sites in order to make their name come up in searches and give them legitimacy.  Also they list memberships in fake organizations on their web sites, groups that do not exist, they have even created scam law firms to later scam people a second time saying they can recover the lost funds for a fee of over $1,000 dollars!  These scam attorneys web sites even have fake testimonials.

They include phone numbers, but none of them are answered by real people unless their caller ID identifies them as one of the people being scammed. The phone numbers are VOIP numbers in the US or cell phones in Mexico City.

When questioned about the charges they provide an opinion letter from a supposed international CPA (Certified Public Accountant) for the US, Canada, and Mexico, but no such people actually exist. Their addresses, when searched on the internet, are phony, too, showing up as address “examples” in other contexts. They don’t give their phone numbers or their cédula numbers (official licenses), which could be verified on the internet. The phony letter also has a fake address and lists no phone number.

The documents look almost legitimate, too—but not quite. They use the real SAT (Mexican tax office) forms, but place false information and false payment codes and fee descriptions that do not exist or are grossly inflated by over 1,000%.  They use such nonsense titles and terms as “Guaranteed Purchase/Sale/Escrow Contract.” No such thing exists. And the list of expenses to be paid is filled with phony codes and line items, too, like IVA taxes, which are never part of timeshare transactions. And Foreign Investor Registration fees, which should never be expressed as a percentage of the selling price. Here are some line items that are phony or grossly inflated:

• Maintenance Fee to date and Renovation Fee to date to be reimbursed at closing
• Closing and Administration Fees paid by Seller to be reimbursed at closing
• 11% Foreign Investor Registration paid by Seller to be reimbursed at closing
• 16% Value Added Tax (IVA) paid by Seller to be reimbursed at closing
• Removals of Liens to be paid by Seller to be reimbursed at closing
• Free and Clear Certificate to be paid by Seller to be reimbursed at closing
• 5% Commission from Buyer to be paid to Seller at closing
• Erasure of Records to be paid by Seller to be reimbursed at closing
• Termination of Fideicomiso to be paid by Seller to be reimbursed at closing

In addition, the Mexican buyers’ names and signatures don’t look right because there’s just a first name and a last name, which is not how Mexican’s legal names look (first name, middle name, father’s last name, and mother’s last maiden name).

And, the seller is never given a set of regulations governing the escrow account, detailing how and under what circumstances the funds will be disbursed. The seller is just told to send the money to a particular account. In a normal escrow transaction the escrow company is licensed, maintains a separate trust account and requires specific authorization in order to disburse funds from the trust account.  The scammers have people send money directly to third parties and do not have licensing nor their own escrow trust account for managing or disbursing funds.

The only two escrow companies I have used for Mexican transactions have been Stuart Title and First American Title, both large companies with trust accounts and large staff in the US.

Scams involving the elderly are, of course, always despicable. In this case, the scams take advantage of expats’ likely confusion about how real estate transactions are handled internationally. And, they assume that elderly expats would probably jump at the chance to unload their timeshares for a profit in this shaky economy.

To avoid these kinds of scams, prospective sellers should:

• Always be wary when approached in an unsolicited manner by anyone claiming that a “guaranteed” buyer is waiting.
• Always be wary if they’re asked to pay any upfront closing costs whatsoever. Only buyers pay closing costs in Mexico as well as much of the world, sellers only pay capital gains tax and if that is paid, it is collected at the end from the payment made by the buyer and deducted from the seller’s proceeds.   Don’t fall for being promised a reimbursement at closing.
• Always hire their own real estate lawyers to review real estate transactions. Never hire lawyers recommended by third parties as sellers need an independent advocate who is not partial and who can review the transaction and documents provided. “

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Feb. 2, 2014:
As the vehicle import agents at Nogales and Laredo say they currently are not able to permanently import autos, (due to problems with their amparo’s), instead Sonia Diaz of SMA continues to offer permanent import services (using paper-only process – no driving) for German cars, Swedish cars, Japanese cars (not Korean), and NAFTA vehicles. She offers this email address: SONIANGEL32@hotmail.com and cell: 044-415-106-1499, but “email works best.” She is currently processing permanent imports for vehicles from 14 different locations/clients from Cozumel to Zihuatenejo. She offers a written full money-back guarantee if not successful.  Details at:  Nationalizing Vehicles Into Mexico , especially post #4.

Details on the Nogales and Laredo agents’ problems can be found at: Possible Change in Aduana Rules for Importing Cars

Please write in with your 2014 experiences.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Jan. 24, 2014:
Some fideicomisos have to file, others do not.

Yucalandia’s comments sections and various expat forums continue to have questions come up on US citizen’s upcoming responsibilities for 2014 filings of: FBAR FinCen Form 114,  Form 8938 Statement of Specified Foreign Financial Assets, and/or Foreign Trust 3520/3520-A forms (this coming March 15, 2014).   This post is an attempt to drag the dialogue out of the semi-buried forums, and cast a little sunshine onto the issue of official 2013 IRS rulings on fideicomisos.

Note: For CURRENT details, see our master article on taxes at: IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article

Fideicomisos (Mexican Land Trust – MLT) for foreigners owning property in Mexico’s special border and coastal zones can be written/worded in one of 2 basic ways:

~  One type of fideicomiso – aka Mexican Land Trust (MLT) –   grants the bank the single solitary right of ONLY “holding legal title” to the property.
=> 1 Right to “hold legal title” = EXEMPT from filing.

or

~ The other variety of fideicomisos grant the foreigner multiple rights or hold multiple properties,  in addition to the basic “holding legal title” right to the property.  
=> More Rights: Has to file with the IRS and Treasury.

Each fideicomiso holder – (as either a corporation or an individual US citizen), must read their fideicomiso/MLT and determine if it was written so they ONLY have the right to “hold the legal title” to the property,   ~ or ~ if their fideicomiso also allows or requires additional rights or “additional assets” or “additional activities“.

IRS Bulletin 2013-26 specifies:  http://www.irs.gov/irb/2013-26_IRB/ar06.html

“If, under the MLT agreement, (the taxpayer) holds legal title to any assets other than (the fideicomiso property)  or is permitted or required to engage in any activity beyond holding legal title to (the fideicomiso property), the holding of this revenue ruling does not apply and the rules of §§ 301.7701-1 through 301.7701-4 will determine the federal tax classification of the MLT.”

This means that if your fideicomiso includes only 1 property (“asset”) and only allows “holding legal title”,  then you are EXEMPT from 3520 / 3520-A filing requirements on that fideicomiso /  MLT.

If however, your fideicomiso / MLT  is worded to: ~ hold title to more than one property or asset;  or   ~ allows you to engage in additional activities with that property (beyond simple “holding legal title”),   then you are NOT exempt,and you must file under IRS requirements (Form 3520-A et al) by the 15th day of the 3rd month after the end of the trust’s tax year – which is typically March 15.

Finally,  if your fideicomiso is worded to allow the additional rights or additional assets or additional activities, then you are also potentially required to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)  and  a Form 8938, Statement of Specified Foreign Financial Assets.   Check this IRS summary table to determine your responsibilities:  http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Finally, MLTs do allow renting.

IRS Bulletin No. 2013-26, June 24, 2013, has the IRS’s detailed set of analyses and detailed descriptions of Rev. Rul. 2013-14. http://www.irs.gov/pub/irs-irbs/irb13-26.pdf

In “Situation 1” on p 1267 the IRS clearly describes the exempt type of Mexican Land Trusts (fideicomisos) and on page 1268, the IRS describes under “Situation 1”:
“X (the American taxpayer) retains the right to manage and control Greenacre. X has the right to collect any rent on Greenacre. In addition, X has the obligation to pay directly any taxes and other liabilities due with respect to Greenacre. Accordingly, because X is treated as a disregarded entity under § 301.7701–2, A is treated as the owner of Greenacre. ”

This one IRS publication clearly identifies an American taxpayer who has a fideicomiso as an exempt Mexican Land Trust, is not a foreign trust for tax purposes, and does not have to file the 3520/3520A forms – and DOES have the right to collect rents.

Sidelight:   One US tax firm is advising people who have, in previous years, previously filed on their Mexican fideicomiso property (property that now qualifies as EXEMPT from filing in 2014), can also now consider filing one (1) last set of forms with the IRS – boldly declaring  FINAL FILING on their 2014   IRS 3520 and/or 3520-A filings.   http://www.btjlaw.com/index.php/fideicomisos-are-not-trusts-per-revenue-ruling

Other references:  RR-2013-14   and  IRS Revenue Ruling 2013-14

Hope this clarifies things and lifts some worries.

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Disclaimer:  This information is not meant as legal advice. It is for educational and informational purposes only.   See a professional for advice on important issues.
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Dec. 5, 2013:
Are US taxpayers are paying for more than we suspect?
($861 Billion a year in  Corporate Welfare  &  Welfare for the Wealthy)

Direct federal subsidies to corporations:($100 Billion/yr)
The Libertarian/Tea Party Cato Institute reports that corporations cost taxpayers almost $100 billion every year in direct federal subsidies.

“Corporate Welfare in the Federal Budget” http://www.cato.org/publications/policy-analysis/corporate-welfare-federal-budget

~

Federal tax breaks for wealthy investment bankers and hedge fund managers: ($83 Billion/yr)
Special tax breaks (aka welfare ) for hedge fund managers have them paying just 15-percent rates, while the people they service usually pay a 35-percent rate. Multimillionaire managers pay lower taxes / lower rates than their secretaries or their plumber. This welfare hand-out costs taxpayers $83 billion annually.

68% of those who receive this special welfare (tax break) earn more than $462,500 per year (the top 1%t of earners).

**http://nationalpriorities.org/blog/2013/11/04/tax-break-hedge-fund-managers/ “The Tax Break for Hedge Fund Managers”

~

State and local subsidies to corporations:  ($80 Billion/yr)
State and local government provide at least $80 billion in subsidies to corporations.* Over 48 big corporations received over $100 million each. Rankings: GM weighed in at a total of $1.7 billion of taxpayer subsidies/welfare from 16 different states, followed by Shell, Ford and Chrysler all receiving over $1 billion each. Amazon, Microsoft, Prudential, Boeing and casino companies in Colorado and New Jersey came in at over $200 million in handouts of state and local taxpayer monies.

*http://www.nytimes.com/2012/12/02/us/how-local-taxpayers-bankroll-corporations.html?_r=0″ target=”_blank

… continue reading here 

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Full Article can be read at: Can We Cut US state, local, and federal deficit spending?

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Jan. 18, 2014:
Is $12.50 a year too much to pay to bring over 300,000 Walmart employees out of poverty?

Should the US Government be paying out over $250 billion in welfare spending on workers, whose employers shift their labor costs over to the US taxpayers?

Should the US Government be paying out $250 billion a year in hidden welfare subsidies to US employers and businesses who shift their costs over to US taxpayers?

Continue reading here.

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Full Article can be read at: Why the $12 an hour mininum wage would be beneficial to America

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Jan. 18, 2014:

In response to our previous article on SAT’s New 2014 Tax Laws for Mexico that Affect Expats , there are various discussions on expat webforums that raise some really GOOD questions about the “RFC”s that some banks fabricated for the foreign customers who had no prior CURP or RFC.

Here’s some examples from the “In the Roo” webforum:  http://intheroo.com/forum/mexico-living/7764-bank-accounts.html#post98459
“My RFC was given to me when I opened my account at HSBC. I am surprised that my rep did not know the RFC was on my checks. I guess you did not see anything on your checks.”
…
“Do you know how they got the RFC? I read that some banks have used one for customers, but it isn’t really their number. I have a CURP, but no RFC. I am wondering if I need to apply for one. Bancomer has not asked me for one so far.    See “What about new banking regulations?” New 2014 Tax Laws for Mexico that Affect Expats and Foreigners | Surviving Yucatan.    John if you go to Bancomer, will you ask them if everyone will need a RFC? Thanks! I sent an email to Bancomer from their website about 2 weeks ago, but never received a response.”

Reality?    Watch out for CURP and RFC numbers that were fabricated by a bank, as they are not official.

For readers who want to comply with the new SAT laws ~ and avoid future problems with your Mexican bank and SAT ~ Know that you must have a legitimate official RFC from SAT/Hacienda.   Many Mexican banks just made up artificial RFCs for foreigners who did not previously have an RFC, when they started past bank accounts.   These old bank-issued RFCs are not generally legitimate.  The last three digits of your RFC tell the tale, because the other numbers just generically describe your name and birth date.

**RFCs are 13 characters long. The first four characters are for the person’s name, the next six characters list the date of birth (YYMMDD), and the last three characters are assigned by SAT/Hacienda.

If you think you have a bank fabricated RFC number that is not real, go to the SAT RFC page to request an RFC number and attempt to get one.  If you already have a legitimate one,  then the site will tell you.   Check at https://www.sat.gob.mx/tramites/28753/obten-tu-rfc-con-la-clave-unica-de-registro-de-poblacion-(curp)

Alternately:  People who already have a CURP, but no RFC, can apply for an RFC tax ID number online at this site – which avoids making an appointment and bringing documents to one of the SAT/Hacienda offices.  If this SAT link is temporarily down, instead, go to the SAT page at https://www.sat.gob.mx/tramites/operacion/28753/obten-tu-rfc-con-la-clave-unica-de-registro-de-poblacion-(curp)   for using your CURP to apply for & get an RFC.

Happy Trails,
steve

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Jan. 1, 2014:  Sra. Osmon logged the following narrative into Yucalandia’s Comments:
“Submitted on 2013/12/29 at 6:28 pm

For anyone considering driving the coast road from Merida to Texas–don’t! Unless you want to run the risk of being abducted at gunpoint, and robbed of your belongings. We just returned from a trip to the US, mainly to attend a music conference in Chicago, but also to drive our Texas-plated Grand Cherokee out of the country and import it back in through Laredo. We became permanent residents last February and had done this for my Jeep in July through Grupo Cuevas in Laredo. At that time, we had gone up the coast to Ciudad Victoria then on through Monterrey and Nuevo Laredo; and we had returned the same way. This trip, we were leaving through Matamoros. Forty minutes north of Ciudad Victoria, we were accosted by five men in a pick-up wearing camouflage and flak jackets with “Policia” caps and brandishing automatic weapons and handguns. They drove us off a side road approximately 35 minutes (very fast) to a nondescript rancho where they held us for 4 hours while they went through and robbed us of most valuables, continually demanding more money. Since they didn’t hide their faces, and, as we observed at one point, they took very large plastic bags out of the trunk of one of their vehicles, we were convinced they would kill us (or else why take us so far from anything?). After a couple of hours, the jefes arrived and one addressed us in English saying they wouldn’t hurt us but they just needed more money. We explained (again) that they had everything already and we weren’t rich people. After conferring among themselves for another hour or so, he told us “what the boys had done was a mistake.” And that we were in “a black Grand Cherokee” and “they had been looking for guns and drugs.” He said they were going to give us our stuff back and let us go. I asked him if they were going to kill us and he said, “No, no, we just needed some money.” He also asked if there was any kind of device in our Jeep, our phones, or the computer that the Americans could use to track them. They drove us back the way we came, and about 10 minutes before we got to the highway, the driver got out of our Jeep, walked back to the pick-up, got in and they drove back toward the rancho. My husband jumped out of the back seat and into the driver’s seat and we raced to the highway, turned north and drove as fast as we could to the border. The FBI agent we reported to in Houston told us that, obviously, they weren’t cartel or we wouldn’t be here today. They were just thugs. Small consolation that wouldn’t have helped knowing as it was happening. Did we get our stuff back? One American cel phone, one video camera (no cables), and one credit card (and the Jeep, of course). We’re now a statistic but not one of the worst statistics. We’ve been driving that route for 18 years but we sold the Jeep after we got to Houston and will never drive again.”

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

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Dec. 15, 2013:Yet new twists have appeared out of Mexico’s latest tax system revisions. Various internet sources report:

~ When you need a factura, we must use credit cards (debit cards?), checks, or bank transfers for any purchases over $2,000 pesos after Jan. 1, 2014.

~ SAT’s intent is to force people/businesses who take tax deductions, to use a form of payment that simultaneously creates an electronic record to allow SAT to electronically confirm (cross-check) our tax deductions. Checks, debit cards, bank transfers and credit card transactions are tracked electronically by SAT.

~ When using facturas, only electronic facturas will be permitted. The electronic facturas are currently in place at a number of businesses, where they print out an official factura for the customer and simultaneously send the same information to SAT/Hacienda. Businesses without a computer factura generating system on site can use a SAT webpage to log each transaction and to print out a factura.

Both of these measures are huge steps to allow Mexican Government tracking of monies spent by ordinary people and ordinary businesses.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

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Dec. 12, 2013:
Interested in Mexico’s rules for importing Chinese-made goods?

If you have read years of internet posts and web-forum accounts, you likely believe that Mexico has super-high duties (300% or more) on “Made in China” goods.    Fortunately,  this has not been true since 2012.   Current duties on Chinese goods now range from 0%  (on juicers) ,   to 5% on lighting ballasts,  to 30% on footware, pants, and sport shirts.

This also means that the years of internet-advice to scrape off the “Made in China” stickers is out-of-date.   *grin*

Continue reading here.

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Full Article can be read at: Mexican Import Duties Changed for Chinese Goods: 2007-2013

Interested in more details on importing things into Mexico? Read more at: What Can I Bring into Mexico: Mexican Customs Rules – The Article

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Dec. 11, 2013:   As a part of our ongoing efforts to help US expats living overseas to understand and comply with US IR tax issues, we pass along updates as we become aware of them. In talking with various US expats, none of them were aware of the IRS’s “new” requirement to e-file FBAR information – in effect for 2012 and 2013 Treasury department filings – in effect since July 1, 2012. FBAR (Foreign Bank and Financial Account Reporting) rules requires Americans with foreign accounts and trusts worth more than an aggregate $10,000 US dollar value to file annual reports with the Treasury Department.  http://www.fincen.gov/forms/e-filing/Efiling_FAQs.html

Since our previous FBAR reports on Fideicomisos, it is worth noting that in July 2013, the IRS decided that typical real estate Fideicomisos for Mexican properties do not require FBAR filings, as long as the OWNER DOES NOT RECEIVE ANY INCOME (no rental income) from the real estate trust/property. Still, if you are an expat married to a Mexicana, you may have Mexican bank accounts that have aggregate worth over the $10,000 limit, and hence are required by the US FinCEN (Financial Crimes Enforcement Network) to make annual e-filings in June with the US Treasury.

KEY FACTS:
~ Filing at the BSA E-Filing website is FREE.

~  FinCEN granted a general exemption for mandatory E-Filing for the FBAR until June 30, 2013.

~  FBAR filers can start the process at:   File an Individual FBAR – FinCEN BSA E-Filing System

~  The US IRS has kindly recognized “that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs), Form TD F 90-22.1,    but have recently become aware of their filing obligations    and now seek to come into compliance with the law. ”  As a result the IRS announced a “New Streamlined Filing Procedure” that includes being:  “required to file delinquent tax returns, with appropriate related information returns (e.g. Form 3520 or 5471), for the past three years and to file delinquent FBARs (Form TD F 90-22.1) for the past six years.”    

http://www.irs.gov/uac/Instructions-for-New-Streamlined-Filing-Compliance-Procedures-for-Non-Resident-Non-Filer-US-Taxpayers   

*sigh*   So,  it appears that if you do not owe anything,  you can catch up on past omissions using their “new” systems.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Dec. 10, 2013:  Please note that this post has been replaced by “ What Can I Bring into Mexico: Mexican Customs Rules – The Article “

The Aduana rules have changed.  We maintain this post, because it has useful comments listed below.

Dec. 5, 2013:  SAT/Aduana has issued new Duty Free limits for people entering Mexico by air and by land. The new year round limits are $500 US dollars per person entering Mexico by air, and $300 US dollars per person by land.  As before, personal items (clothing etc) are exempted from the $300/$500 limits.

From 2 official SAT/Aduana Websites:
“Pasajeros:  Qué necesito saber antes de llegar al país
Mercancía que puedes introducir al territorio nacional sin el pago de impuestos:
1.  Cada pasajero (incluso si es menor de edad) tiene derecho a introducir al país, sin pago de impuestos, su equipaje personal y su franquicia. …
Franquicia
Aumento de la franquicia
La franquicia es el permiso que el gobierno mexicano concede a una persona, ya sea nacional o extranjera, para no pagar derechos e impuestos por una determinada cantidad de mercancías que introduce al país.

Ingreso a territorio nacional por vía marítima o aérea
La franquicia es hasta por 500 dólares o su equivalente en moneda nacional o extranjera, en uno o varios artículos, excepto si son cervezas, bebidas alcohólicas y tabacos labrados.

Ingreso al país por vía terrestre
La franquicia cubre hasta 300 dólares o su equivalente en moneda nacional o extranjera, en uno o varios artículos, excepto si son cervezas, bebidas alcohólicas, tabacos labrados y gasolina (salvo la contenida en el tanque de gasolina del vehículo siempre que esté de acuerdo con las especificaciones del fabricante).

En ambos casos, se debe contar con la factura, comprobante de venta o cualquier otro documento que exprese el valor comercial de las mercancías.

Las cantidades pueden acumularse por el padre, la madre y los hijos, incluso menores de edad, cuando el arribo a territorio nacional sea simultáneo y en el mismo medio de transporte. …”

http://www.aduanas.sat.gob.mx/aduana_mexico/2008/pasajeros/139_10054.html
http://www.aduanas.sat.gob.mx/aduana_mexico/2008/pasajeros/139_10076.html

Note that these are the year round limits.   There are also special holiday $500 USA per Mexican citizen Paisano program limits between Nov. 1, 2013 and Jan. 8, 2014.

Continue reading here.

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Full Article can be read at: What Can I Bring into Mexico: Mexican Customs Rules – The Article

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

Dec. 3, 2013
There are yet new updates from INM on people leaving Mexico with children. This report comes from Lic. Spencer McMullen, a fine attorney in Jalisco, who specializes in legal issues affecting expats. You can contact Lic. McMullen at Chapala Law.

On 12/03/2013 Lic. McMullen reports:
“Today Mexico published in the DOF new rules for minors leaving Mexico who are unaccompanied or with an adult who is  not their parent or guardian.   The new rules take effect in 30 days (Jan. 2, 2014).

The new rules describe an official permission form (for taking children out of Mexico) which would need to be notarized, apostilled or legalized and translated (if not in Spanish).  The form is to be published within 30 days.   Curiously the new law doesn’t mention visitantes, perhaps exempting tourists from this requirement as it only lists Mexicans and residente temporales and residente permanentes who need to have the permission letter. ”

For bus and airline travel, the checking/verification of traveling children is up to the “transport companies”. The new rules describe “fines of up to 10,000 time minimum salaries to transport companies who don’t check that the minors have the letter. ”

The official DOF language states children traveling with one parent or one guardian do not need permission. “Que viajen en compañía de alguna de las personas que ejercen sobre ellos la patria potestad o la tutela, cumpliendo con los requisitos de la legislación civil”

http://www.dof.gob.mx/nota_detalle.php?codigo=5324003&fecha=02/12/2013 http://www.mexconnect.com/cgi-bin/forums/gforum.cgi?post=195890;sb=post_latest_reply;so=ASC;forum_view=forum_view_collapsed;page=last;#last

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .