Closing On My House - Question

aztec says on Nov 28, 2007, 07:59:

Yes. Search this site for information. Plenty available.

Don't delay.

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Gator says on Nov 28, 2007, 12:01:

Two forms (Formularios), Form 4 when the money entered Colombia and then send Form 11 to Banco de Republic in Bogotá. By filing these two forms you can repatriate the funds when the property is sold with out adverse affects.

"Credidi pretio parvo emere et magno vendere tibi in animo fuisse!" .

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pilotguy says on Nov 28, 2007, 13:21:

thanks gator, joe

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aztec says on Nov 29, 2007, 04:32:

Filing form 5 also requires less work for the banker. He/she can file it and forget it. Although neither is complicated. If recollection is correct, form 4 is one page and only requires half a page of information.

Rest assured, if you fail to file the appropriate information with the National Bank you will receive a notice about two years latter. Both viewpoint and I have received the notice two years after the transaction. The letter demanded we appear in the enforcement office with required justification within ten days. My wife and I were able to satisfy their concerns but it was very difficult dealing with the bureaucracy over the phone from the States.

You have nothing to lose by using Form 4 and 11. PepeA is on the mark when he states some bank managers don't know the difference. Most of them have never handled foreign accounts as they relate to purchase of property. I might add that many lawyers or agents have no idea of the requirement.

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elk says on Nov 30, 2007, 07:26:

Aztec:

Regarding form 4 and 11. I was told the actual value of the property must be declared for tax purposes and that the notary fee is also based on the higher value. What has been your experience?

I paid 136,000,000 COP for my apartment and the recorded value at the notary is 45,000,000 and I pay tax on this amount. I used form #5, and have no plans to sell and repatriate the funds to the U.S. (I'm aware of the tax liability)

I also understand filing form 4 and 11 requires filing a document each year through an accountant. This may be related to the 80,000,000 COP max in order to avoid the patrimony tax? Had I used the actual value of 136,000,000 COP this would put me over the 80,000,000 COP limit and I would be required to pay additional tax each year. (patrimonal tax) My current tax is 540,000 COP per year.

Just curious...and I appreciate your earlier posts on the subject.

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aztec says on Nov 30, 2007, 09:03:

Since you have filed form 5 and the deadline has passed it seems moot to be concerned about form 11 and any follow up.

I am not aware that form 11 requires an annual filing. The purpose for form 11 is to provide documentation of your investment in the event of repatriation.

Form 5 simply documents the transfer and source of funds.

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