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anthony3070

Mar 14, 2011, 2:23 PM

Post #1 of 24 (4865 views)

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IDE Tax and Bank issues

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Hey everyone, hope all is well --

Background info -- I opened an account at Santander-Serfin here in Mexico. You get a debit card with your name on it, it works online and even works overseas. Great, until I found out the hard way that there is what's called "IDE Tax". If you deposit more than 15,000 pesos cash in a one month period they tax it at 3 percent. I realize that this is a federal thing, not the individual banks fault.

A little over a month ago I put 30,000 pesos cash into my account. The teller/bank people said NOTHING to me about this tax. I checked online and at the end of the month I was charged 450 pesos (3% of 15,000).

Oh well, live and learn -- that's a small price for a lesson learned.

Now, my problem is I was planning on putting 25,000 USD from my US account into the Mexican account. I am based in Mexico, so usually what I do is pull money out of the ATM every week or so from my US account for spending money. My US bank (Charles Schwab) does not charge a foreign transaction fee and they even reimburse the fee from any ATM in the world. Before I found out about this 3% tax, I was just going to take the 25k (300,000 pesos) out of the ATMs and deposit cash over the course of a few weeks.

I am not going to pay 3% on that kind of money so am looking for an alternative. I called Charles Schwab and they told me that they do not deal in international wires. Was the person I talking to on the phone misinformed about this?
How does everyone on here put larger amounts of money into their Mexican accounts?

Thank you everyone for your replies!

DavidHF

Mar 14, 2011, 3:16 PM

Post #2 of 24 (4835 views)

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Re: [anthony3070] IDE Tax and Bank issues

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Write a check for your deposit, there is no tax on checks only cash.

anthony3070

Mar 14, 2011, 3:43 PM

Post #3 of 24 (4818 views)

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Re: [DavidHF] IDE Tax and Bank issues

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So I can write a personal check in US dollars to Santander bank and they will accept that? That would be awesome if that works.

mazbook1

Mar 14, 2011, 6:00 PM

Post #4 of 24 (4782 views)

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Re: [anthony3070] IDE Tax and Bank issues

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If, and that's questionable, Santander accepts your U.S. dollar check for deposit, it will take them (normally) about 2-3 weeks to finalize the deal (pesos in your Santander account) and you won't get the the best rate of exchange. There are two other options, 1. The best is if you have a local Intercam (Intercam Casas de Cambio, S.A. de C.V.) in your area (roughly 80+ offices in México). They accept personalized U.S. (and Canadian) checks and deposit the pesos in your bank account the same day. 2. Intercam also accepts U.S. dollar wire transfers to their account in the U.S. (which Charles Schwab will do for you), gives you an even better rate of exchange and deposits your pesos in your bank the same (or the next day). Normally, Intercam's exchange rate is equal to or better than the Mexican banks at any given time. I have done it both ways numerous times (just this morning!). Also, I have discovered that their exchange rate is somewhat negotiable when transferring large amounts of money.

Believe it or not, I discovered Intercam when my bank officer at Santander recommended them to me as a better (and definitely cheaper) way than through Santander for transferring major amounts of money from the U.S. to México.

(This post was edited by mazbook1 on Mar 14, 2011, 6:02 PM)

anthony3070

Mar 14, 2011, 6:12 PM

Post #5 of 24 (4770 views)

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Re: [mazbook1] IDE Tax and Bank issues

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You are god my friend. If ever in Guadalajara, I owe you a beer (or 5).

Thanks,
Tony

Casa

Mar 14, 2011, 6:42 PM

Post #6 of 24 (4759 views)

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Re: [anthony3070] IDE Tax and Bank issues

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Another option is XE Trade.... https://www.xe.com/fx/demo/

I have used them a number of times. The exchange rates are great, and you can do everything online.

Money comes out of a US/Canada or other account and get wired into whatever bank account in whatever currency you like.

Wires like checks are not subject to the IDE tax.

mazbook1

Mar 14, 2011, 6:50 PM

Post #7 of 24 (4757 views)

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Re: [Casa] IDE Tax and Bank issues

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Casa, I too have used XE Trade, and their exchange rate at any given time is usually equal to or a tiny, tiny bit better than Intercam. I pretty much quit using them because their transfers to Santander always took 3 or 4 days (more if over a weekend) and through Intercam I could always get it the same day. Also, maybe just for new customers, they cap the amount you can change and send, whereas Intercam has NEVER (not in 10 years or so of doing business with them) "capped" how much they would exchange for me no matter how large it was. The timing through Intercam was, for me, why I dropped using XE Trade.

Maybe it's just that "immediate gratification" thing, but I sure like having my money the same day. LOL

DavidHF

Mar 14, 2011, 8:12 PM

Post #8 of 24 (4735 views)

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Re: [mazbook1] IDE Tax and Bank issues

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All good advice. I use MultiVa for investment accounts and Banco MultiVa for banking. I can write a check anytime. Good exchange rate and good service. Personally, I would not use a bank that would not accept my US$ check.

bfwpdx

Mar 15, 2011, 6:01 AM

Post #9 of 24 (4696 views)

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Re: [anthony3070] IDE Tax and Bank issues

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And of course because this foreign account will exceed $10,000 US in balance, then you are going to disclose it to the IRS/Treasury and avoid serious penalty, right???

http://www.bloomberg.com/...fshore-accounts.html

(This post was edited by Rolly on Mar 15, 2011, 7:01 AM)

anthony3070

Mar 15, 2011, 8:42 AM

Post #10 of 24 (4658 views)

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Re: [bfwpdx] IDE Tax and Bank issues

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I'm no Al Capone, I don't think the IRS will be looking for me in Mexico anytime soon. The money was made on the internet, I don't live in the US and there is an 80,000 USD tax exemption every year for living outside USA.

NEOhio1

Mar 15, 2011, 8:47 AM

Post #11 of 24 (4655 views)

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Re: [anthony3070] IDE Tax and Bank issues

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You still should do the paperwork to establish the legitimacy of your claim to the exemption.

anthony3070

Mar 15, 2011, 8:56 AM

Post #12 of 24 (4645 views)

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Re: [NEOhio1] IDE Tax and Bank issues

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Yes, I do.

My taxes that is. I don't want to get married just yet.

panama john

Mar 15, 2011, 9:38 AM

Post #13 of 24 (4627 views)

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Re: [anthony3070] IDE Tax and Bank issues

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I have had a Schwab account for 25 years and they do make international wire transfers. I have made several over the years.

bfwpdx

Mar 15, 2011, 2:22 PM

Post #14 of 24 (4598 views)

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Re: [anthony3070] IDE Tax and Bank issues

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This has NOTHING to do with your 80,000 exemption. This has to do with the requirement to disclose an aggregate balance exceeding $10,000 in a foreign bank account (or accounts). This means that if your total in foreign banks totals $10,000 if only for one day of the year, you are required to disclose. The feds are cracking down on this. You have to disclose on your income tax form or else be at risk for severe penalties. They can impose severe penalties on those who do not disclose, going back 7 years. Just google it and check it out.

prorader

Mar 26, 2011, 10:54 AM

Post #15 of 24 (4334 views)

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Re: [bfwpdx] IDE Tax and Bank issues

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I hope my situation is different. I am going to get a Mexican insurance check for an accident that my son had 4yrs ago in Mexico, for a fair amount of pesos, as soon as the check clears I have to give the lawyers and government tax money out. At this time I will send $3,000.00 US a month to my son in the US until it hits the $10,000.00 cap and invest the rest here probably in Lloyds is this different

Mar 26, 2011, 1:35 PM

Post #16 of 24 (4293 views)

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Re: [anthony3070] IDE Tax and Bank issues

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This applies only to cash transactions. Sorry, you did not know. I agree with other posters. Write a check. I have stopped using my US bank debit card for ATM withdrawals in Mexico, as they are now charging a five dollar international transaction fee, plus 3% of whatever amount I withdraw. Highway robbery. I, too have a Multiva account and can write a check of any amount from my US bank and the charge is seven dollars USD. Any amount. It does take 30 days before it is deposited in my Multiva account, even though the check clears my US account in 3-5 days. Still trying to figure that one out. T

johanson

Mar 26, 2011, 1:38 PM

Post #17 of 24 (4293 views)

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Re: [prorader] IDE Tax and Bank issues

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Thank God, prorader. I have always felt very bad for you and your son. I'm glad the insurance for the bus company finally came (or will come) through. Congratulations.

4 years. That sucks.

(This post was edited by johanson on Mar 26, 2011, 1:44 PM)

prorader

Mar 26, 2011, 1:57 PM

Post #18 of 24 (4287 views)

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Re: [johanson] IDE Tax and Bank issues

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Hay Pete long time no see, living in Jose de Gracia, Mich, but moving to Villahermosa, Tabasco, yes been along time, a lot of money, a lot of bad lawyers, and other stuff. Last year I drove off a mountain in Colima with Richard and fractured 4 vertabre in my neck and spine, 20 day in Guad in the public hospital and 6 hours under the knife, still do not have total control of my left hand. Richard is in Oklahoma City with my sister finishing his BA in Computer Cyber Tech. Me I have lived with a 44 yr old Mexican lady for 2 years, not the best looking one but the one who has taken good care of me. The law suit only is for $500,000.00 pesos which $200,000.00 goes to the lawyer and the government, maybe a $5,000,000.00 against the bus union but shit who knows, but Richard now suffers from PTSD, Anxiety and panic attacks just like his dad does. Lake Chapala is now total history, except for a few like you

jrpierce

Mar 31, 2011, 8:35 AM

Post #19 of 24 (4118 views)

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Re: [anthony3070] IDE Tax and Bank issues

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Quote

I called Charles Schwab and they told me that they do not deal in international wires.

As a previous poster stated, this is completely incorrect. I have done several international wires through Schwab. Just ask for their International Wire Transfer department. The gal I was dealing with said they make many many transfers to Mexico daily.

That said, I prefer the suggestion of another poster simply to deposit a check from my Schwab bank account into my Bancomer account because it saves the wire transfer fee. It has taken about a week for the funds to be good in Mexico, and the exchange rate was just fine.

Jim

tonynico

Apr 1, 2011, 9:17 AM

Post #20 of 24 (4007 views)

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Re: [jrpierce] IDE Tax and Bank issues

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Will all banks take brokerage checks? like Schwab / Fidelity

jrpierce

Apr 1, 2011, 10:19 AM

Post #21 of 24 (3986 views)

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Re: [tonynico] IDE Tax and Bank issues

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Tony, I don't know about any firms other than Schwab and Bancomer. Also, you ask about brokerage checks. I write checks on my Schwab bank account. I don't really know how that works with other investment firms and whether you mean a check written to you by, say Fidelity. I'm guessing others will know more about this than I do. Jim

tonynico

Apr 1, 2011, 4:31 PM

Post #22 of 24 (3940 views)

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Re: [jrpierce] IDE Tax and Bank issues

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HI Jim
I am talking about writing a check on my Fidelity checking account.

Thanks
Tony

DavidHF

Apr 2, 2011, 7:02 AM

Post #23 of 24 (3877 views)

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Re: [tonynico] IDE Tax and Bank issues

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Your check will be accepted at any bank or investment firm where you have an account. I write checks on my Vanguard account and my US bank account with no diffictulty. I bought a car in Guadalajara and they were willing to accept a US check, also at a big furniture store. Bring your checkbook!

panama john

Apr 2, 2011, 4:45 PM

Post #24 of 24 (3813 views)

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Re: [jrpierce] IDE Tax and Bank issues

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For general information. You can open a bank account at any border city, Matamoros for example, with a Texas drivers license and texas address, border city like Brownsville. No visa necessary. Also dollar accounts are avaliable. Of no use inside Mexico, but excellent for international use.