Also, the IRS is the enforcement agency for obummercare compliance. I know several guys who have opted not to join a plan and pay the penalty but now the penalties are increasing.
One thing for sure: having the IRS after you is no fun.
I wish the tax code could be much simpler, I have had differing opinions from CPA firms on tax issues and neither were accepted by the IRS. The cost of preparing, complying and reporting taxes is enormous and bureaucracy at its worst. Every year both parties come up with new ideas that add to the code making it harder to understand and comply with. But, I am off on another anti-tax rant now
Also, the IRS is the enforcement agency for obummercare compliance. I know several guys who have opted not to join a plan and pay the penalty but now the penalties are increasing.
One thing for sure: having the IRS after you is no fun.
I wish the tax code could be much simpler, I have had differing opinions from CPA firms on tax issues and neither were accepted by the IRS. The cost of preparing, complying and reporting taxes is enormous and bureaucracy at its worst. Every year both parties come up with new ideas that add to the code making it harder to understand and comply with. But, I am off on another anti-tax rant now
http://www.thepurpletaxplan.org/ ''
The Purple Tax Plan replaces the federal personal and corporate income taxes as well as the estate and gift tax with a broad-based, low-rate, progressive consumption tax and a low-rate, progressive inheritance tax. It also makes the highly regressive FICA payroll tax highly progressive and runs the highly progressive Earned Income Tax Credit and Child Tax Credits through the FICA tax. The plan eliminates the need for households and business to file annual income tax returns.
In considering the Purple Tax Plan, please bear in mind that we can have a highly progressive tax system without high marginal tax rates. The Purple Tax Plan features lower marginal tax rates than the current system, yet achieves a much more progressive distribution of tax burdens. It should also generate substantially more revenue. This is due not to "trickle down" or the Purple Tax Plan's very likely strongly positive growth effects, but simply the fact that consumption is a very broad tax base.
As much as I hate taxation, the IRS, & ACA taxation I like this because I pay my bills and I hate the deadbeats that don't even more.
I am curious about people who own condos on Sandy Beach and do not pay their HOA dues. Is there enforcement? There seem to be quite a few who simply do not pay.
We have owners that rent on their own and do not pay the daily impact fee they are suppose to pay. This is my 3rd place in RP, and all the others had the same problem.. Las Palomas was the worse. My friend who was across from me would call and ask if my place was rented because there were people on the patio. I would call and they would say it is just cleaning people. Happened more than a few times. At Spa we had owners in the one bedroom tower crowded way to many people into the units. But that was along time ago but it did make us sell that unit. (It was at the top of the market, so maybe it was a blessing). I advertise on craigslist, and I get call all the time, but when they see the HOA Impact fee of $6, they don't rent. Fine with me. When ever I get a renter I have them pay Seaside. I charge them all the fees and taxes but I give them the 3rd night free so I stay competitive with the owners that rent under the table.
I have to say that my unit has not been abused or trashed. I had that one bedroom in the first building since day one in Bella Sirena. Paint and having the couch and loveseat cleaned really keep it fresh. I have had vacation rentals for almost 40 years. I makes it much easier when you play by the rules. People that don't pay the room tax to the government are foolish. Why would you want to expose yourself in the foreign country to that kind of risk?
I am curious about people who own condos on Sandy Beach and do not pay their HOA dues. Is there enforcement? There seem to be quite a few who simply do not pay.
from prior RPTalk post...
HOA'S are only mandatory if you have property that is included in a building or buildings shared by other owners such as condos,hotel rooms. AZ Governor Jan Brewer and her husband challenged Las Conchas HOA in Mexican Federal court in Hermosillo and the ruling was in favor of AZ Governor Brewer. The ruling was that you do not have to belong to an HOA as reported in the Phoenix Business Journal. So, you can if you want to, but it is optional and not mandatory.
We have owners that rent on their own and do not pay the daily impact fee they are suppose to pay. This is my 3rd place in RP, and all the others had the same problem.. Las Palomas was the worse. My friend who was across from me would call and ask if my place was rented because there were people on the patio. I would call and they would say it is just cleaning people. Happened more than a few times. At Spa we had owners in the one bedroom tower crowded way to many people into the units. But that was along time ago but it did make us sell that unit. (It was at the top of the market, so maybe it was a blessing). I advertise on craigslist, and I get call all the time, but when they see the HOA Impact fee of $6, they don't rent. Fine with me. When ever I get a renter I have them pay Seaside. I charge them all the fees and taxes but I give them the 3rd night free so I stay competitive with the owners that rent under the table.
I have to say that my unit has not been abused or trashed. I had that one bedroom in the first building since day one in Bella Sirena. Paint and having the couch and loveseat cleaned really keep it fresh. I have had vacation rentals for almost 40 years. I makes it much easier when you play by the rules. People that don't pay the room tax to the government are foolish. Why would you want to expose yourself in the foreign country to that kind of risk?
The mgt company was renting your unit behind your back and pocketing the rent?
from prior RPTalk post...
HOA'S are only mandatory if you have property that is included in a building or buildings shared by other owners such as condos,hotel rooms. AZ Governor Jan Brewer and her husband challenged Las Conchas HOA in Mexican Federal court in Hermosillo and the ruling was in favor of AZ Governor Brewer. The ruling was that you do not have to belong to an HOA as reported in the Phoenix Business Journal. So, you can if you want to, but it is optional and not mandatory.
If the hoa was established from day one when the units were first sold, the subsequent Hoa membership is part of the purchase agreement and mandatory. Gov Brewer's situation was different in that the majority of the homeowners decided after the fact that they wanted all homeowners to be madatory members of a newly formed hoa, whether everyone wanted it or not. She refused and won in court. Other 'after the fact' Hoas tried the same thing and put pressure on dissenting owners to join, telling them that it was mandatory although it was not.
I do not know if it was management. Too many people had access to those units. I was told it was employees that had keys and knew the schedule. But everyone denied it so I got out. Of all the different places I have had, I have never seen those problems at any other developments. Just that one and I understand they have cleaned that up too.
from prior RPTalk post...
HOA'S are only mandatory if you have property that is included in a building or buildings shared by other owners such as condos,hotel rooms. AZ Governor Jan Brewer and her husband challenged Las Conchas HOA in Mexican Federal court in Hermosillo and the ruling was in favor of AZ Governor Brewer. The ruling was that you do not have to belong to an HOA as reported in the Phoenix Business Journal. So, you can if you want to, but it is optional and not mandatory.
Really? The HOA is not mandatory even though you use the security, the upkeep, the elevators, the common areas??? Doesn't seem right to me!
Really? The HOA is not mandatory even though you use the security, the upkeep, the elevators, the common areas??? Doesn't seem right to me!
Oh wait! They are mandatory in condo buildings. Which brings me back to my original question - how can people simply not pay the HOA dues? Is there recourse for the condo association?
Oh wait! They are mandatory in condo buildings. Which brings me back to my original question - how can people simply not pay the HOA dues? Is there recourse for the condo association?
Yes, the hoa can place liens on the delinquent units and after due process can take ownership, resell and recoup the delinquent assessments.
If the hoa was established from day one when the units were first sold, the subsequent Hoa membership is part of the purchase agreement and mandatory. Gov Brewer's situation was different in that the majority of the homeowners decided after the fact that they wanted all homeowners to be madatory members of a newly formed hoa, whether everyone wanted it or not. She refused and won in court. Other 'after the fact' Hoas tried the same thing and put pressure on dissenting owners to join, telling them that it was mandatory although it was not.
Good info Jim, especially the part about the Brewer's. I had always heard the court ruling was it was voluntary to be a HOA member...period. I looked for more info about the Brewer's case as well as Mexican HOA guidelines in general but have not found much. Would you mind sharing your info sources on this?
Good info Jim, especially the part about the Brewer's. I had always heard the court ruling was it was voluntary to be a HOA member...period. I looked for more info about the Brewer's case as well as Mexican HOA guidelines in general but have not found much. Would you mind sharing your info sources on this?
There is a thread here on this forum 'Hoas in Puerto Penasco' in which you participated, dated July 18 2013 on the topic. With everyone weighing in with inaccurate assumptions it became a bit misleading.
Note that Gov Brewer owned a detached house and not a condominium which legally made all the difference.
That would be a disaster for most HOA's if it was voluntary. You'd have a huge problem. You'd have many people that wouldn't pay and then the HOA would not be able to keep up with maintenance, etc of the common grounds. Usually, the HOA is established in the very beginning. So if you have a problem with HOA's in general, you know you don't want to buy there. For us, we prefer vacation homes (condo/townhomes) in places with an HOA so that we do not have to worry about upkeep.
There is a thread here on this forum 'Hoas in Puerto Penasco' in which you participated, dated July 18 2013 on the topic. With everyone weighing in with inaccurate assumptions it became a bit misleading.
Note that Gov Brewer owned a detached house and not a condominium which legally made all the difference.
What about having to help pay for the maintenance and staffing of the guard shack and the maintenance of the roads? Doesn't seem like they would be able to get out of that. But I guess since the HOA wasn't established when they purchased their property, they were legally able to get out of it. Doesn't seem fair though.
Yes, the hoa can place liens on the delinquent units and after due process can take ownership, resell and recoup the delinquent assessments.
In theory HOA's can do that, but I've rarely ever seen it done. Your best bet is to have a good HOA board of directors and make sure that they keep on these delinquent owners because if they let it go too long, it's hard for the owner to get caught up.
What about having to help pay for the maintenance and staffing of the guard shack and the maintenance of the roads? Doesn't seem like they would be able to get out of that. But I guess since the HOA wasn't established when they purchased their property, they were legally able to get out of it. Doesn't seem fair though.
Because a grandfathered owner doesn't want to be subjected to Hoa special assessments to pay for failed boondoggles, or be dragged into long drawn out Mexican lawsuits, doesn't mean that they are unwilling to pay for security services and road grading.
In theory HOA's can do that, but I've rarely ever seen it done. Your best bet is to have a good HOA board of directors and make sure that they keep on these delinquent owners because if they let it go too long, it's hard for the owner to get caught up.
I have seen it done quite successfully in SanCarlos very recently. Some Hoas are competent and some are a financial disaster.
This isn't about what you can or cannot get away with. It's about being a good neighbor. The dues at Las Conchas are $100 a month, if you enjoy the roads and security that that fee provides, do the right thing and help support it, we'd have alot more breakins without it. The condos on Sandy beach is another story. I think the HOA dues are exhorbitant. Paying your dues is a bit like the thread on the Border postings about not cutting in line. Like they tried to teach you in grade school: play nice , do the right thing and no cheating. Some never got that.
I have seen it done quite successfully in SanCarlos very recently. Some Hoas are competent and some are a financial disaster.
Good to know. Agree with you about some HOA's being competent and others not so. My experience is that very few owners either do not go over the financial stuff or don't understand it. It's important to go to the annual meetings and ask questions if there is something you do not understand about the budget or financials. Being an HOA board member is a very time consuming job. And a thankless one as well. It is difficult to find people willing to step up and be a board member. But I recommend everybody do it at least once. You learn a lot about how an HOA is run.
This isn't about what you can or cannot get away with. It's about being a good neighbor. The dues at Las Conchas are $100 a month, if you enjoy the roads and security that that fee provides, do the right thing and help support it, we'd have alot more breakins without it. The condos on Sandy beach is another story. I think the HOA dues are exhorbitant. Paying your dues is a bit like the thread on the Border postings about not cutting in line. Like they tried to teach you in grade school: play nice , do the right thing and no cheating. Some never got that.
I used think the same thing about the high HOA dues for the condos on Sandy Beach. But then when I broke it down and compared it to what we pay in the US, it seemed comparable. Those HOA dues on Sandy Beach include water, sewer, trash pickup, 24-hour security guards, internet, cable TV, and maintenace/repair/replacement of exterior components. We have a lot of very nice amenities to enjoy (swimming pools, hot tubs, gym, playground, charcoal grills, etc). Some resorts seem to keep the dues under control better than others. Puerta Privada is the best with keeping their dues low, but they don't have to deal with renters. If I had to do it over again, I would purchase there.
There is a thread here on this forum 'Hoas in Puerto Penasco' in which you participated, dated July 18 2013 on the topic. With everyone weighing in with inaccurate assumptions it became a bit misleading.
Note that Gov Brewer owned a detached house and not a condominium which legally made all the difference.
Thanks Jim, I am familiar with that thread but it didn't mention the fact that the Brewers were challenging a newly formed HOA which is an obvious game changer. I thought you must have found that info elsewhere. Still curious about some basic Mexican HOA legalities such as are Mexican Nationals really exempt and the verbiage on the voluntary/mandatory thing.
Thanks Jim, I am familiar with that thread but it didn't mention the fact that the Brewers were challenging a newly formed HOA which is an obvious game changer. I thought you must have found that info elsewhere. Still curious about some basic Mexican HOA legalities such as are Mexican Nationals really exempt and the verbiage on the voluntary/mandatory thing.
Mexican Nationals are no more exempt than non nationals. The same rules apply. Hoas, dues, liens and foreclosing on delinquent accounts is substantively the same as in the US.
Good stuff, thanks. To clarify, we have paid our HOA membership fees for over 15 yrs and have no intention of stopping. We appreciate the efforts and positive results from our HOA.
It's people like Landshark that make HOA's work here in Playa Encanto. With collections this year I was able to approve two new quads for the guards, a newer tractor to grade the Interior roads, the main road coming is graded every 15 days. We also have street signs that we have never had before. We have rights to a piece of property that we will make into a covered meeting place. Without owners paying their fees, this would of never of happened.
We provide 24/7 security and trash pick up two times a week
HOA's need paying members to make all this work.