Procopio Attorney Advises Top U.S. Tax Officials on 35 Percent Penalties for Americans with Mexican Real Estate in Fideicomisos
Hernandez-Pulido, is the current chair of the of the State Bar of California's Taxation Section, International Committee. U.S. citizens cannot acquire direct title to Mexican real estate along the coastal-beach communities directly (unless they are also Mexican citizens) and commonly form a Fideicomiso to own the property. Hernandez-Pulido proposed an exemption or simplified regime for the reporting requirements that U.S. tax law currently imposes on U.S. taxpayers who acquire an interest in residential real estate in Mexico through a Mexican residential trust.
Current law is complex and potentially exposes unwary U.S. investors to very high penalties that could amount to more than 35 percent of their Mexican property investment. Hernandez-Pulido is the principal author of the proposal, and was recently published in Tax Notes Today.