The Costs of Buying Real Estate In Mexico – A short look at some of the aspects of US citizens buying property down there. One point not covered, for anyone considering using 1031 exchanges with Mexican property, is the fact that the tax code defines “like kind” in regard to real property in terms of its nationality. USA real property can be exchanged for other USA real property. Mexican real property can be exchanged for other Mexican real property. You can’t use 1031 to swap between Mexican and USA properties in either direction.
Here is the website of Julie Kershner, the Realtor quoted in the WSJ Q&A who has a lot more info on Mexican real estate.
Labels: 1031