solajijic Posted September 10, 2013 Report Share Posted September 10, 2013 We have found recently that a temporal holder can indeed, for a fee of about $4000 US, gift to the other person on a deed their 50% of captial gains to take advantage of the 5 year exemption rule. This has big possibilities for those couples who want to keep a US plated car with one person remaining temporal. It also may work that the temporal person can then go permenete and use on their own another 5 year exemption. Talk to your favorite notario. Link to comment Share on other sites More sharing options...
JRPJR Posted September 10, 2013 Report Share Posted September 10, 2013 Hope if and when I decide to sell that I will have capital gains to worry about! Link to comment Share on other sites More sharing options...
solajijic Posted September 11, 2013 Author Report Share Posted September 11, 2013 If you are a buyer prior to about 2008 or so it is likely you have gains due to the tendency for the deed to be recorded at a significantly reduced price from what you actually paid. That practice pretty much ceased but was typical for transactions of 2004, 5, 6 and 7. Link to comment Share on other sites More sharing options...
purplebeads Posted September 11, 2013 Report Share Posted September 11, 2013 I am not sure I understand this. If you have 2 people on title, one person could be taken off the title ( for a fee) and stay temporal and keep car. But if the other person would become permanente, there wouldn't be those " capital gains". So you have to pay $4,000 plus what ever it would cost to get retitled into one person's name, realtor fees just to save a car? Why not just have one person go permanente ? Of course one would have to give up a non nafta car if one went permanente. Link to comment Share on other sites More sharing options...
gringal Posted September 11, 2013 Report Share Posted September 11, 2013 I am not sure I understand this. If you have 2 people on title, one person could be taken off the title ( for a fee) and stay temporal and keep car. But if the other person would become permanente, there wouldn't be those " capital gains". So you have to pay $4,000 plus what ever it would cost to get retitled into one person's name, realtor fees just to save a car? Why not just have one person go permanente ? Of course one would have to give up a non nafta car if one went permanente. I don't know how the legal details would work, but if one of the parties to this kind of arrangement meets an untimely (and unexpected) demise, the potential for labyrinthine complications seems likely. Link to comment Share on other sites More sharing options...
solajijic Posted September 11, 2013 Author Report Share Posted September 11, 2013 You would have one spouse be permanente and one temporal. Then when it came time for your house sale to close the temporal assigns the gain to the premanente, it took a week, the house closing is timed to be the next day and the permenante takes the gains and the exclusion. I mention it only for informational purposes. We would not have known about except for a hint of the possibility during a conversation. I considered not mentioning it at all but it solved a problem for us and night for someone else, like anything legal check with your notario. Link to comment Share on other sites More sharing options...
purplebeads Posted September 12, 2013 Report Share Posted September 12, 2013 Was there a cost to "assign the gain" to the permanente? And was the temporal on the deed? Did the deed have to be retitled in only the permanente's name. Link to comment Share on other sites More sharing options...
solajijic Posted September 12, 2013 Author Report Share Posted September 12, 2013 Yes, the original post states about $4K US. Yes to the deed. Link to comment Share on other sites More sharing options...
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