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Gringal

Jul 13, 2015, 1:16 PM

Post #1 of 4 (7042 views)

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RENTAL INCOME TAX

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I've just spent a goodly amount of time searching the internet looking for specific answers, and maybe I'm just not asking the right questions. Would appreciate any help from those who have apartments, casitas, or houses which they rent out legally, complying with the SAT laws:

We built a casita (1 bdrm.) over our carport. It's furnished. Since we also live on the property, we don't want to get involved with short vacation rental arrangements and would like to turn the management over to a property manager. (No, they are not giving me straight answers as yet. At least not in writing.) We'd like to avoid getting into tax troubles by trying to do this "under the counter". I don't need the aggravation, though I know a lot of people who do it that way.

Here's the questions:
Let's say I rent the property for $500 US per month. I deduct the cost of utilities included. What percentage of what's left is taxed and at what rate? Who collects and pays the taxes and keeps the accounts? How often must one report?

This is not in the restricted zone and we own the property outright.
Any help from experienced landlords is appreciated.



slainte39

Jul 13, 2015, 11:01 PM

Post #2 of 4 (6988 views)

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Re: [Gringal] RENTAL INCOME TAX

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1...The IMN procedure to ascertain the status for "actividad lucrativa".


2...Register with Hacienda and receiving a RFC number for reporting taxes.


3...Hiring a CP (contador publico) to file tax reports with Hacienda (SAT).


taxes you will be required to pay...
IVA....16% of the rent collected and issue facturas
ISR...net profit after expenses....probably around 15 to 20 %


I think there is another small tax that hotels and B&B's pay but don't think it applies to rentals of around 2%
There is some difference about furnished and unfurnished rentals


This is just an synopsis idea, but bottom line is........
Get a good tax accountant to get things started, to file and pay your taxes, and advise you on fiscal matters, as the tax law constantly changes, such as what are legal deductions, etc. and unless you are an avid reader of the Diario Oficial, you can get into quicksand very quickly.


There is going to be a lot aggravation whichever way you go.


rockydog85251

Jul 14, 2015, 4:44 AM

Post #3 of 4 (6976 views)

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Re: [slainte39] RENTAL INCOME TAX

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Long ago when we rented an apartment, the landlord gave us a receipt/factura for only rent on the space...the furniture was separate and as such, she didn't have to pay taxes on that portion....at that time, but things may have changed.
The advice for getting a GOOD accountant is spot on.
Willie


Gringal

Jul 14, 2015, 10:58 AM

Post #4 of 4 (6920 views)

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Re: [rockydog85251] RENTAL INCOME TAX

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Thanks. That's good advice.
 
 
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