Gringo Gazette

Gringo Gazette

What’s Going On In This Country?

Oh happy day! According to our new president elect there will be no federal government inspectors including those from the tax department. AMLO explained, “we’re going to trust the people.” Ja ja ja! Sure, trust us all to mail in that tax money your government is going to steal and blow on stupid stuff, you bet.

In addition to no Federal Tax Administration (SAT), inspectors, the Secretariat of Health and consumer protection agency Profeco, among other departments, won’t exist during his presidency.

Well, Profeco protects us, we want their consumer protection efforts. Like they inspect the gas station pumps.

Citizens will only have to sign a document pledging that they are “conscious” of their obligation to act within the law, the president-elect said.

It’s not the first time that López Obrador has placed his faith in the people of Mexico. Announcing that he will forego personal security as president days after his landslide victory in the July 1 election, the political veteran said: “The people will protect me. He who fights for justice has nothing to fear.” Yikes.

7 million go thirsty. 20 water truck companies hired by Mexico City to supply the people affected by a planted maintenance water-out are nervous about getting the job done. The water will be turned off for three days (it was initially projected to be four) 930 trucks with capacity for 10,000 to 40,000 liters have been arranged for deliveries, but they expect long wait times at the locations where tanker trucks can load up, meaning they cannot guarantee deliveries to consumers.

Nor can delivery be booked beforehand because the Mexico City water department, Sacmex, will control water distribution at the 450 locations where tankers will be supplied.

Residents of Iztapalapa will have to rely solely on government tanker trucks because private companies refuse to deliver to the borough after their trucks were stolen in the days following the earthquake on September 19, last year.

Residents will have more water at their disposal prior to the suspension in order to fill up water tanks and containers. The National Water Commission will bump water pressure by 15% five days before the suspension begins and for five days after service resumes.

Oh, toughen up! We here in Los Cabos only get water a couple times a week and we don’t stink nor go thirsty. Nor do we whine.

The Vaquita are nearly done, right? Well, maybe not. An expedition to investigate the dwindling vaquita porpoise population found three different groups of the mammals, including babies, raising hopes about its future. It was determined only months ago that the small dolphins found only in the Sea of Cortez were nearly goners, with only a handful left. Well, maybe they’re hiding, they’re shy. How do people know how many there are anyway? Let’s face it, these vaquita huggers have no idea what the hell they’re doing.

No more plastic bags. First it was straws. Tijuana has now banned plastic bags. Living with this isn’t as bad as it sounds. We’re doing it n the States now and you get used to keeping a cloth bag in your car. If you forget they will sell you a paper bag. Of if you’re really us against it, just have them throw all your stuff back into the basket and you throw it all into your car. The campaign against plastic pollution was launched in the spring of 2017 by the United Nations Environment Program.

According to data compiled by the federal Secretariat of the Environment, Mexico generates close to 103,000 tons of trash every day, 10.9% of which are plastics which are often washed away by rain and end up in the ocean.

We’re waiting for someone to get excited about all the unnecessary plastic bottles we’re buying and discarding. We’re not eco freaks but even we think that’s nonsense and we buy our water by the gallon and pour it into smaller bottles we re-use. That’s certainly more important than ripping straws out of our mouths.

Vanished! Money, of course. More than US $852 million in federal health care funding that was transferred to state governments between 2013 and 2017 is unaccounted for, audits show.

The newspaper Milenio reviewed audits conducted by the Federal Auditor’s Office (ASF) and found a range of irregularities in the use of funds allocated to the Seguro Popular health care program. Oh gawd the Seguro popular program. That’s stealing from the poorest of the poor.

The problems include overpayments for medications, payments for which no records exist, unauthorized transfers of funds and the inclusion of phantom employees on payrolls.

Authorities have identified those believed to be responsible for 3 billion pesos of the missing money and have begun the processes to recover it. However, none of those resources have yet been recovered.

The public program provides medical coverage for 55 million Mexicans who have no other health insurance, including 22 million people who earn less than twice the minimum wage (176 pesos or around US $9 per day): in other words, the nation’s poorest people.

Statistics show that the number of doctors, nurses and other medical personnel working in the Seguro Popular system is below both OECD levels and those for Mexico as a whole, while medicine shortages have occurred in several states.

Corruption is suspected of being a significant factor behind the system’s shortcomings and there is evidence that its consequences can be fatal. “Corruption kills.”

The Big Chalupa

Whenever something major happens in life, the taxman is never far behind.  Buying property is one of those “somethings”.  It’s slightly more special when outside the U.S.  Here’s a non-exclusive primer on some U.S. tax aspects you may wish to consider when purchasing a dwelling for your use in Mexico.

If you rely on home equity loans or second mortgages to fund Mexico home purchases, know the new tax law curtailed deductibility of those. But the IRS clarifies the law: independent of what the loan is called, it could be deductible if used to buy, build or substantially improve the taxpayer’s home securing the loan.  If your Mexico home is not loan security, the interest is not deductible.

Mexican mortgages: your interest could be deductible. We just lost the foreign property tax “predial” personal deduction for individuals. Now, predial is only deductible if the property is used for a business or for the production of income– rent.

Those who purchase and later rent out must depreciate (it’s an allowance for wear and tear) the property and take annual deductions for it (later “paying it back” when the property is sold).  The new law changed the time period for foreign residential property from 40 to 30 years, leading to higher deductions. Don’t forget to depreciate if you must.

Documenting your purchase price is a critical.  U.S. taxes are paid in dollars; make sure you document the Peso exchange rate.  As back home, improvements call for an adjustment of “basis” in the property. It should be documented during the life of the property. You would be amazed at how many people try to reconstruct these numbers, years after the fact.  Did you inherit the property instead of buying it?  Get it appraised.  You may need to report the inheritance if it came from a non-U.S. person. It may not be taxable, but reportable.

If your Mexico property meets the test as your “principal residence” the federal gain on its eventual sale can be excluded from your tax, just like a U.S. home. The same limits and rules apply.

If you are wiring money from the U.S. to buy, remember Foreign Bank Account Reports.  And do yourself a huge favor: unless you have a really, really, very good reason, stay away from setting up foreign corporations to hold real estate. A well-structured fideicomiso (land trust) would be a far better way to go.

Now, welcome! Enjoy your Chalupa!

 

Orlando Gotay is a California licensed tax attorney (with a Master of Laws in Taxation) admitted to practice before the IRS, the U.S. Tax Court and other taxing agencies.  His love of things Mexican has led him to devote part of his practice to federal and state tax matters of U.S. expats in Mexico.  He can be reached at tax@orlandogotay.com or Facebook: GotayTaxLawyer.  This is just a most general outline. It is informational only and not meant as legal advice.

Dia de Muertos

Dia de muertos or day of the dead is a famous Mexican tradition. It is a day to honor the dead, but it is also a day to make fun of death. You have seen it in many movies, but most of the big screen depictions I’ve seen picture it wrong (I haven’t seen Coco by the way). Today we’ll give you the real story. First we will start with its origins:

Before the Spaniards came to Mexico, the day of the dead was already being celebrated. There are historical registries of this tradition in the cultures of the Mexica, Maya, Purépecha and Totonaca ethnic groups. The ritual of celebrating the life of the deceased has always been part of Mexico. In the pre-Hispanic world it was a common occurrence to keep the skulls as trophies and exhibit them in the rituals that celebrate death and rebirth.

The cult of death: When somebody died festivities were organized to guide his soul through its journey across the underworld. The body would be buried rolled up in a “Petate” and personal objects along with his favorite food would be placed in his tomb in case he got hungry.

The most important aspect of this celebration is the ofrenda or offering. On this day it is believed that the souls of the dead come back to be with their loved ones, that is the reason of the offerings. Some of the ancient beliefs link this offering to the four elements: Water, air, earth and fire: Earth is represented by the fruits in the offering. This are usually pumpkins, tejocotes, tangerines, sugar cane and oranges. Water is placed in a jar to calm the thirst during the journey. Fire is present trough the candles, there are usually four candles that represent the cardinal points to guide the soul. Wind is in the copal and incense burned and it is believed to mark the way for the deceased to follow.

Altars are placed with the offerings to celebrate the deceased’s loved ones. These altars are usually set up at home and  decorated with zempasúchil  flowers surrounding a picture of the defunct person all this on top of a white mantle. You can almost always find colored paper cut in ingenious designs decorating the altar.   And don’t forget one of the most famous and enjoyable offerings “pan de muerto” or bread of the dead which comes in a plethora of presentations and flavors. And last but not least the kids’ favored offering: Skulls made of sugar, often with the name of the person being remembered.

There are different variations on the celebration of this day according to the geographic location. In some places the number of steps in the altar represent the levels of the underworld the soul has to go through. There can be up to seven steps but most common is to have only two that represent heaven and earth.

In the present the date of this celebration is officially on November the 2nd  but the original tradition also has the first of November as the day to honor the dead children. The Catholic church calls this day the saints innocents day.  In some places the offering starts on October 28 until the official date. The Aztecs used to dedicate a whole month to this holiday but it all changed with the arrival of the Spaniards.

People often go to the cemetery with family and friends and spend the day there eating, drinking around the graves. They clean up the tombs and decorate it with candles and even spend the night there. Often there is live music in the cemetery making this a complete celebration.

There are many fun other traditions linked to this holiday. One of them is the calaveras: These are verses that depict a person as if they were already dead mostly in a satirical way. The verses date back to the Virreinal age, starting as a satire of the long dedications the rich people used to put on their loved ones’ graves. Later it became more of a way to do social critique up to the point the government censored them. After a while fun drawings of skeletons were added to the calaveras. The most famous artist in this venue was Jose Guadalupe Posada, He is the original designer of the Catrina character, whom you’ll recognize as the elegant rich lady skeleton you find in Mexican artesania.

The calaveras today are less political and more a fun way to express the feelings towards someone, whether it’s love, hate or critique. Often they are used as gifts to that person.

In November 2003 the UNESCO recognized The dia de muertos holiday as a cultural heritage masterpiece of humanity.

Don’t Forget to Turn Back The Clock

Daylight savings time ends this Sunday, November 4 at 2:00AM, so don’t forget to turn back the clock one hour before going to bed on Saturday. You won’t want to miss an hour of your favorite Baja brunch buffet!

Northern Baja sets back the clock the same day as Southern California because of the huge commercial relations between the two areas. Almost every other city in the country already did it this past weekend (except for a few border towns).

Baja California was the only state in Mexico to observe the daylight savings adjustment for many decades, until 1996 when the rest of the country decided to join the party.

A new bill proposal in California’s Congress would give voters a chance to end daylight savings for good. If that goes through Baja would have to follow suit just as Sonora has done with Arizona since 1998.

National Survey for The Mexico City Airport Starts Today

From today and until October 28th, polls will be open in order for Mexican people to decide the faith of the deeply controversial new Mexico City airport.

There are just two options to vote from, one is to continue construction of the new airport in Texcoco and the other option would be to expand the current airport, the Toluca airport and build two more air strips in the military air base in Santa Lucia.

The construction is already ongoing or the Texcoco airport.
Construction is already ongoing on the Texcoco airport.

The poll is organized by Lopez Obrador or AMLO as he is better known, although he hasn’t stepped into office yet (he will do that on December 1st) he said he wanted to gain some time and ask people how they feel regarding the airport.

AMLO has been against the new airport from the start because, he says, it was just a monument to corruption since on the first phase the project was already over budget by over 5.5 billion USD. The total cost is said to be 15.5 billion USD.

The new airport was beautifully designed by Norman Foster, an internationally acclaimed architectural design group.

In Baja, several polls are installed in every municipality although the one in Rosarito was almost cancelled because the organizers were robbed of all the material from their truck a couple days ago.

Enrique Chiu Announced As Finalist In Global Arts Awards Dubai

Enrique Chiu, the Tijuana artist we featured on our last issue, has been named finalist in the second Global Art Awards recognizing excellence and innovation in art and design, and will be going forward to the grand final of the prestigious awards taking place at the FIVE Jumeirah Palm, Dubai, on November 21, 2018.

Enrique Chiu, whose work “Carnaval”in the painting category has been singled out for praise by the judges will be heading for Dubai in November in the hope of winning the award in its category.

He will also have the chance to be named The Best Global Artist of 2018, which is awarded to one outstanding overall winner, who will also win an exhibition in Abu Dhabi as well as the life-long title.

Dubbed “The Oscars for the Visual Arts”, The Global Art Awards celebrate the exceptional achievements of artists from across the globe. There are 16 visual arts categories, ranging from photography, street art, illustration and painting to awards recognizing individual artists, including Best Newcomer; Best Sculpture Artist Award; Best Innovative Artist Award as well as the highly illustrious Best Emirati Artist Award.

Regarding reaching the finals of the Global Art Awards, Enrique Chiu said: “I am very excited to be a finalist with my artwork Carnaval. This is an international art prize, very important for the artistic society of the world. I am the only Mexican in my category and I will proudly represent my country, my city and in honor of our brothers in our borders.”

“It’s a great honour to be named a finalist in the Global Art Awards and I am delighted to be able to join such a fantastic, roll-call of artistic talent heading for the awards in Dubai. These awards really do single out the best, most exciting artists working today, to celebrate their achievements, and I am honored to be among them.”

Joëlle Dinnage, Founder and Director of the Global Art Awards said, “We created the awards a year ago to establish an inspirational international art competition on a global scale. Artists who were successful last time have gone on to gain recognition and commissions, travel and attend exhibitions and receive a real boost to their careers.

“This year, standards have been exceptionally high and the competition has been fierce across all categories. Congratulations to all the finalists. We look forward to seeing them in Dubai.”

The awards ceremony takes place on the evening of Thursday 21st November 2018 at the 16th floor Penthouse FIVE Jumeirah Palm against the backdrop of the astonishing Dubai skyline.

If you have an extra $525 USD and you want to attend the event, you can get tickets here. Better have a couple thousand for the flight to the Emirates too or it’s going to be a long swim there.

More information about the awards is on http://www.theglobalartawards.com. Facebook: @theglobalartawards Instagram: @theglobalartawards Twitter: @globalartawards

Full details about the artist and their work are available here: http://www.enriquechiu.mx Facebook: @enriquechiu.arte Instagram: @enriquechiuarte Twitter: @enriquechiu

VIDEO: Helicopter Crashes Into San Felipe Sea

A helicopter from the Mexican Marine crashed into the San Felipe sea this last Saturday at 3:40 PM during a surveillance operation that was focused on finding illegal fishermen, in an effort to protect the few vaquitas left.

The SEMAR (or Mexican Marine) informed that there were 12 people on board of the helicopter, 9 of them are not harmed, 2 were transferred to local hospitals in San Felipe with wounds, one more is critically wounded and another one hasn’t been found.

In a strange turn of events, the marines were promptly rescued by the same illegal local fishermen that they were chasing.

This is the third helicopter that has crashed in Baja since last year, after two police helicopters also crashed last year on land in different events.

Video here:

https://www.bajanorte.com/en/surfing/

Surf Tournament Coming Up In Ensenada

Playa Hermosa Surf & Sk8 Club is adjusting the final details of the 5th “Day Of The Dead” tournament, which this year is a tribute to Cristian “Cri Cri” Contreras.

The surf competition will be this October 27 and 28, Saturday and Sunday. You can register now at Playa Hermosa Surf and Skate Shop in Pedro Loyola St.

Cost per competitor is just $150 pesos (about 8 bucks) until October 25, after this day the cost will go up to $200 pesos (about 11 USD), registration includes an official shirt of the event.

The categories open this year are female beginners, male beginners, female open, male open, body board open, long board open (mixed), paddle board open (mixed) and Minihoonies (12 years or less).

Each day the tournament start at 7 AM just across the stairs in Playa Hermosa, awards are being given after the competition finishes on Sunday on the same place.

With information from Gabriel Garcia | El Vigia.

Van Of U.S. Murder Suspect Found In Baja

There was a break in the Colusa County murder case of Karen Garcia when investigators found the van her suspected killer/boyfriend escaped in, right here in Baja.

Unfortunately, the van was being driven by someone else, who said that had bought the van a while ago possibly from the suspect, Salvador Vaca Garcia Jr.

Colusa Police Chief Joshua Fitch said that the back is already back in Colusa County after being towed back to Northern California on Friday.

“It was on the Mexican side of the border…is my understanding somewhere near Tijuana,” Fitch said. “It was a small town near Tijuana.”

By his statement it can be deducted that the van was found either in Tecate or Rosarito, although Garcia is thought to have fled Baja already.

If you have any information regarding the whereabouts of Salvador Vaca Garcia Jr or want to report any sightings call US 1-877-926-8332.

You can also join the JusticeForKaren Facebook page for more information regarding her case by clicking here.

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