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Procopio Attorney Advises Top U.S. Tax Officials on 35 Percent Penalties for Americans with Mexican Real Estate in Fideicomisos

San Diego, CA - Enrique Hernández-Pulido, an international tax attorney with Procopio, Cory, Hargreaves & Savitch LLP represents clients in international transactions and is licensed in both Mexico and California. He recently provided expert advice to officials of the Tax Counsel of the U.S. Senate Finance Committee and the U.S. House Ways and Means and Joint Tax Committees; the U.S. Treasury Department; and the IRS Chief Counsel International, on an important issue for U.S. investors who acquire property in Mexico through Mexican residential trusts (Fideicomisos). Few U.S. tax practitioners are aware of the U.S. tax reporting requirements that exist under current law.

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.