# Selling Property & Visa Implication



## conklinwh (Dec 19, 2009)

I know that I'm going back two generations and that new visas are temporary resident and permanent resident but at New Year Eve party person had just sold her house and she was told by lawyer that no capital gains since "FM2" but she would have had if "FM3".
I thought that with "FM3" that you received a capital gains waiver after 5 years of residence.
Is this not true? Will we need go for Permanent resident if we want to sell property to have no capital gains even though over 5 years?


----------



## circle110 (Jul 20, 2009)

It apparently depends greatly on the notario. I asked my notario here in Guanajuato and he said that I would have to pay a tax of 20% (OF SALE PRICE! - not just capital gains) no matter what visa status I had and no matter how long I had held the property. He told me that there was no way for me to avoid it. Fortunately, he told me that I can gift the property to my wife (a Mexican citizen) and we can sell it in her name and thus avoid the tax.

I don't know if my notario is "right" or not but since it is the legal obligation of the notario to collect all taxes on a real estate transaction he/she has a lot of control in calculating the proper taxes since it is their financial tush on the line of it is not done correctly. As I understand it, if the notario doesn't collect a required tax they must pay it themselves.


----------



## conklinwh (Dec 19, 2009)

We just had friend close her property with no capital gain tax. She has "FM2"/inmigrante visa.


----------



## circle110 (Jul 20, 2009)

conklinwh said:


> We just had friend close her property with no capital gain tax. She has "FM2"/inmigrante visa.


Interesting. 
My regular notario won't do it with any visa nor after any time period of possession. Since we have an alternative with the gifting to my wife (and we are not looking to sell in the near future anyway) I haven't looked into what other notarios here in Guanajuato would do in the same circumstances.


----------



## RVGRINGO (May 16, 2007)

Actually, the buyer has the right to choose the notario, so it may be even further out of your control.
Inmigrante or Residente permanente should be exempt, but everything is in flux and nobody has the answers. SNAFU combined with corruption fills many pockets.


----------



## conklinwh (Dec 19, 2009)

Even a little more confusing as I just talked to person that we use to assist with visas as ours are coming up for renewal. I told her that we had a a US plated car with our no immigrant visas so we needed to be careful.
She said that there is a lot of confusion about this and that the US Consulate extension in SMA has a number to call in Queretaro which I gather is Aduana.
My goal if at all possible is to have my wife try get a permanent visa to help with capital gains as the house is in her name and for me to get a temporary visa as the US plated car permiso is in my name.

We'll see!


----------

