Taxes

[Enrique885]

Hi all, glad to be here.

So we US citizen with ABBs in Mexico would be double taxed?

How that works?

I know my friends in Mexico register with SAT, but are we supposed to pay taxes here in the states too?

I haven't host since the pandemic broke out, so I have not clue in with country I should pay taxes.

Please help.

[Sarah977 · Accepted solution]

@Enrique885  Yes, you have to report your rental income and pay taxes on it in both the US and Mexico. The IRS requires all US citizens to report and pay on worldwide income.

But this is not called double taxation. Mexico and the US have a tax treaty which prevents double taxation. Meaning if you were taxed at 4% in Mexico, but are in a 15% tax bracket in the US, the 4% you paid in Mexico is deducted from the 15%, leaving you with 11% to pay in the US.

You will likely need a savvy accountant to deal with this, or at least advise you on how to report.

[Enrique885]

Hi Sarah.

Thanks for the feedback,  I'll dig into.

😃

[Legado1]

Hi Enrique. I am dealing with the same dilemma. Have you found any info on this? I’d greatly appreciate any feedback.