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Rolly

Dec 21, 2008, 8:53 AM

Post #1 of 12 (6192 views)

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FM2 to be required to avoid capital gains tax

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On Jan 1 the old argument whether an FM3 was enough to avoid capital gains taxes on real estate sales will be settled. A new law clearly states that an FM2 is required.

I don't have an official website to reference, but private correspondence with several professionals in the field has confirmed it.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

(This post was edited by Rolly on Dec 21, 2008, 10:28 AM)

Gringal

Dec 21, 2008, 11:06 AM

Post #2 of 12 (6163 views)

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Re: [Rolly] FM2 to be required to avoid capital gains tax

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Rolly,
Have you heard whether that would be national or state by state?

Rolly

Dec 21, 2008, 11:17 AM

Post #3 of 12 (6160 views)

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Re: [Gringal] FM2 to be required to avoid capital gains tax

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It's a federal rule applying to the whole country

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

robrt8

Dec 21, 2008, 12:10 PM

Post #4 of 12 (6148 views)

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Re: [Rolly] FM2 to be required to avoid capital gains tax

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I figured it was just a matter of time.

How much is the tax?

Rolly

Dec 21, 2008, 12:50 PM

Post #5 of 12 (6142 views)

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Re: [robrt8] FM2 to be required to avoid capital gains tax

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"How much is the tax? "

Complicated. Depends on this and that. Talk to your notario.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

Carron

Dec 21, 2008, 12:51 PM

Post #6 of 12 (6140 views)

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Re: [robrt8] FM2 to be required to avoid capital gains tax

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Guess I sold at the right time. Back in 2001 all I had to have was an FM3 and proof that I had actually lived in my house for the previous 12 months to avoid capital gains.

morgaine7

Dec 21, 2008, 7:28 PM

Post #7 of 12 (6092 views)

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Re: [Rolly] FM2 to be required to avoid capital gains tax

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Wow, that's big news for many foreigners who own property here. Some still don't see the point of getting an FM3. Rolly, if you do learn of an official web reference, please post it so that we can pass it on. Many thanks for the heads up.

Kate

robrt8

Dec 21, 2008, 7:58 PM

Post #8 of 12 (6082 views)

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Re: [morgaine7] FM2 to be required to avoid capital gains tax

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Why get an FM3?

Rolly

Dec 21, 2008, 8:07 PM

Post #9 of 12 (6079 views)

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Re: [robrt8] FM2 to be required to avoid capital gains tax

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She mistyped. She meant FM2.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

morgaine7

Dec 21, 2008, 8:13 PM

Post #10 of 12 (6078 views)

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Re: [robrt8] FM2 to be required to avoid capital gains tax

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See what I mean? Crazy

Rolly ... no, I meant FM3. Some folks insist that they can "do everything" on an FMT.

Kate

(This post was edited by morgaine7 on Dec 21, 2008, 8:18 PM)

Rolly

Dec 22, 2008, 6:58 AM

Post #11 of 12 (6038 views)

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Re: [morgaine7] FM2 to be required to avoid capital gains tax

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oops. My mind reading trick failed again.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

bournemouth

Dec 22, 2008, 7:10 AM

Post #12 of 12 (6031 views)

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Re: [Rolly] FM2 to be required to avoid capital gains tax

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I'm fairly sure a workaround will be found for this in short order. We came from a coastal area where the notarios maintained that because property was held in a fidiecomiso (trust) the true owner was the bank and that taxes must be paid, regardless of the immigration status of the sellers. When necessary the description of the property was rewritten by one method or another - done by the notario - bringing the value to a point where taxes would not be due. One must remember that everything is subject to interpretation on the local level.