Best Accountants in Boston, MA

Investing Overseas? Avoid These Tax Traps. Thinking of buying a vacation property abroad that doubles as a cash machine? Sounds amazing, but there are some key tax differences to consider, especially in countries like Mexico. Before you pack your bags, let's explore some potential tax traps: Slower Depreciation Schedule: In the US, you can depreciate commercial property over 39 years. In Mexico, it stretches to 40 years. That means a slower tax deduction on your investment. This can significantly impact your cash flow, so factor it into your calculations. Bonus Depreciation? (That's a No Go!): The US offers bonus depreciation for certain properties, allowing you to deduct a larger portion of the cost upfront. Mexico? Not the case. You can still use cost segregation to separate the property's components and potentially accelerate depreciation, but it's a more complex strategy. Moral of the story? Do your research before you invest internationally! For instance: Thinking of going global with your real estate portfolio? Just click the link below and connect with us NOW! We can help you navigate the tax complexities.