Greetings all,
I want to take a moment away from 10/15 tax return deadlines to share an unsolicited email that I received.
By the way, even though the government is shut down, there’s no extension for the 10/15 extended tax deadlines.
Juan Zuniga of Rimon Law, was kind enough to share the following and gave his permission to post the following on this blog.
“I’ve read your interesting commentary on fideicomisos. As part of my practice, I am involved in negotiating and documenting fideicomisos for US clients on a daily basis.
There is no fideicomiso contract that is limited to the bank merely “holding title”.
Bear in mind that a fideicomiso is a creature of contract under Mexican law and thus, it does not exist as a separate legal person like a corporate entity or even a US Trust.
The Mexican banks that act as trust fiduciaries (fiduciarios) build protective mechanisms into each trust which allows them to take certain actions under various circumstances including, but not limited to execute mortgages to create a lien against the property, take an instruction to sell the property, to enter into long-term leases, etc.
All these things must be done at the instruction of the trust beneficiary but since the technical title to the land is in the name of the Bank, virtually any action could be deemed to be beyond merely holding title.”
Juan E. Zúñiga
http://www.rimonlaw.com/professionals/juan-zuniga
Remember, there continues to be confusion about IRS Revenue Ruling 2013-14 as it states that the owner of a Fideicomiso (Mexican Residence Trust) does not have to file Form 3520 & 3520-A unless the Bank is permitted to perform activities beyond holding title to the property.
From Mr. Zuniga’s opinion, IRS Revenue Ruling 2013-14 applies to nobody, as all of the Banks that are Fideicomiso trustees are permitted to perform tasks beyond holding title.
John Dillinger, CPA, CGMA, PFS, MS.tax
“Nationally recognized expert in International Taxation”
http://www.knowledgecongress.org/event_2010_Form_5471.html
Dillinger Carter & Associates, Inc.
400 Oyster Point Blvd, Ste. #114
South San Francisco, CA 94080
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalty or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Tax Implications of Having a Fideicomiso 
Leave a comment