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Redbeard

Benefits of Real Estate in a Corporation in 2017?

32 posts in this topic

On 6/28/2017 at 8:00 AM, David C. Murray said:

When we removed our vehicle from its corporation and dissolved the corporation, the total cost was a bit greater than the old corporation tax would have been for that year, but since then we have more than recovered the legal costs by avoiding subsequent years' corporation taxes. 

As far as having a vehicle in a corporation in order to avoid liability, you will be better off to dissolve the corporation and then buy public liability insurance which you can pay for, in part at least, with the savings on the corporation tax. As good citizens, we believe we should be liable for injuries, deaths or damages that are our fault. The liability insurance takes care of that without risking our own financial welfare. 

Our real estate is tied up in a corporation due to our mortgage, but we are looking into how to dissolve that corporation, too. Regardless, our homeowners' insurance provides liability coverage should someone be injured or killed on our property. The cost of that homeowners' insurance, too, would be offset by the savings on the corporation tax.

 

Do you care to say how much you pay for homeowners insurance? I am paying about the same car insurance as I paid in the states, for a much much older car! So I would think homeowner ins here would be very high as well!

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I'm still trying to understand, how, if the corporation tax was found "unconstitutional" it is being reinstated, and why - for all the years when it WAS unconstitutional we don't get that money back! 
But I've noticed that in Costa Rica the government and businesses are very reluctant to give money back, even when they admit the money should never have been charged to you in the first place.

I know this isn't Kansas, but at the same time, jheez, how do they justify this stuff?

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It was declared unconstitutional only for procedural errors in the way the law was promulgated. The tax itself presented no constitutional problems. Therefore once the procedural errors were corrected by the asemblea, the tax was reinstated. The asemblea took advantage of the fact that they had to revisit the law to make some sensible changes.

La Nación and El Financiero are your friends :)

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James, the cost of homeowners' insurance will vary with the value of your home, the value of its contents, and perhaps other considerations. Our insurance agent was flabbergasted to learn that we do not live in a gated, guarded subdivision and that we do not have bars on our windows and doors. Those issues may have influenced the cost of our homeowners' insurance policy as did the fact that we included a substantial collection of artwork and rugs in our coverage. 

In homeowners' insurance policies, one size does not fit all.

 

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14 hours ago, induna said:

It was declared unconstitutional only for procedural errors in the way the law was promulgated. The tax itself presented no constitutional problems. Therefore once the procedural errors were corrected by the asemblea, the tax was reinstated. The asemblea took advantage of the fact that they had to revisit the law to make some sensible changes.

La Nación and El Financiero are your friends :)

Nice that you can read the papers, or rather that you took the time to learn to read them. Good for you!

I speak fluently and am often complemented on my Spanish here, but when it comes to understanding the accents and manner of speaking, here, and understanding tv and radio where they speak really fast, and understanding the news papers where they use a lot of "big fancy words" - LOL - I just don't have the patience. In an ideal world, I know I "should". But it's far from an ideal world...

Am working on understanding the way many people SPEAK; that's my goal. I find that in San Jose I can understand the vast majority but in other parts, not so much. Also some people just talk way too fast; others talk with thick regional accents; others mumble. Nothing wrong with any of that, it's just that I have a hard time with it.
 

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I'm going to go speak with an attorney this month for sure about dissolving the corporation.

To me the less forms you have to fill out for the government, the better off you are. I've already had them cut off my social security payment for lack of a 1 page form with 1 basic question that no one even told me I had to fill out, and it was a major headache getting it done  because the stupid SSA doesn't provide an encrypted space for documents uploaded to their office. So everything has to be done by hand (i.e. snail mail or Pony Express).

With government bureaucracy being what it is, it seems better to me not to have to fill out forms for them every year if you have that option, and there is no real reason apparently to have a corporation, it's just something attorneys like to talk you into doing.

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8 hours ago, David C. Murray said:

James, the cost of homeowners' insurance will vary with the value of your home, the value of its contents, and perhaps other considerations. Our insurance agent was flabbergasted to learn that we do not live in a gated, guarded subdivision and that we do not have bars on our windows and doors. Those issues may have influenced the cost of our homeowners' insurance policy as did the fact that we included a substantial collection of artwork and rugs in our coverage. 

In homeowners' insurance policies, one size does not fit all.

 

David, thanks for the explanation. I don't have bars either. I will not live that way. If it ever came down to having to live that way here, I'd try to move somewhere else.
I know the majority of people do but to me it would make me feel like I was living in a jail. Even with nice "pretty" bars...
However I don't have any thing of much value, no more than the average Tico home. So I guess I'll have to go get a quote from an insurance guy and see what he says. I'm mostly just interested in the "someone getting hurt on my property" insurance.

Another issue is Do the insurance co's pay off in a timely manner? Or do they try to find a way NOT to pay off?

I heard that with car insurance if you wreck your car it's not cut and dried/easy like back home. They try not to pay and take a long time to pay when they do so. And with no car rental policy in effect (providing a rental while you wait for money to get another one), what do you do for 2-3 months while you wait for the car to be replaced?
So the point is, I wonder if fire or earthquake or theft insurance for a homeowner policy  also takes "forever" to get paid out on?

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3 hours ago, jamesofomaha said:

heard that with car insurance if you wreck your car it's not cut and dried/easy like back home. They try not to pay and take a long time to pay when they do so. And with no car rental policy in effect (providing a rental while you wait for money to get another one), what do you do for 2-3 months while you wait for the car to be replaced?

Fortunately, James, there are ample taxis, plus many inexpensive buses & routes with frequent service to most everywhere in the country –unless you happen to be way out in the boonies where the bus frequency may often be much reduced.

OK — HTH

Paul M.

==

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James. you gave me a good chuckle with your comment about Ticos mumbling.  I remember when we first started studying with our Spanish tutor, she mentioned that Ticos use a lot of slang, and she said that sometimes she has a hard time understanding her friends BECAUSE THEY MUMBLE!!!  Of course, our reaction was, if she has a hard time understanding some of them, how will we ever be able to understand what they're saying?  But we know how to ask someone to repeat what they said and to speak slowly, so that helps.

My hubby backed our car into a culvert creating $2000 worth of damage to the car.  We were on our way to SJO, flying out the next day.  At the time of the accident, we didn't know where we were, so we didn't call INS to report it.  We did call our insurance agent once we got to San Jose to let him know what had happened.  He told us we'd have to file a report after we got back from the States.  Upon doing so, he said we had a slim chance of getting our claim approved since we didn't report it initially.  But much to our surprise, INS approved it and paid for all the repairs.  Our car was in the shop for 1 month, and it took about that long for them to approve our claim.  While being carless, we would make the 20 minute walk to the bus stop and then take a taxi home with all our goodies.  Once we rented a car for 2 days.  When you rely on a car to get around, it's really a pain to do without, especially when you live in the boonies.  But my hubby also hitched a ride with a neighbor sometimes as most of them knew we were without a car.

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Even though only about twenty percent of stolen vehicles are ever recovered here in Costa Rica, the law dictates that a vehicle is not considered legally stolen until thirty days after the theft is reported to the OIJ. That helps to explain the delays in settlements for stolen vehicles. What's more, you must report the theft within 24 hours, even on weekends and holidays, and only to the OIJ office rather than the local Fuerza Publica. 

Neighbors have recommended that, should your vehicle be stolen, the first thing you should do is notify the local taxi companies who can tell their drivers to be on the lookout for it. They have more eyes open than the Fuerza Publica could possibly muster.

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On 7/7/2017 at 8:58 PM, Epicatt2 said:

Fortunately, James, there are ample taxis, plus many inexpensive buses & routes with frequent service to most everywhere in the country –unless you happen to be way out in the boonies where the bus frequency may often be much reduced.

OK — HTH

Paul M.

==

Unfortunately we do live at least 10km from the nearest bus! That's why this slow insurance payout thing I've heard about, is a concern to me.

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On 7/8/2017 at 8:40 AM, David C. Murray said:

Even though only about twenty percent of stolen vehicles are ever recovered here in Costa Rica, the law dictates that a vehicle is not considered legally stolen until thirty days after the theft is reported to the OIJ. That helps to explain the delays in settlements for stolen vehicles. What's more, you must report the theft within 24 hours, even on weekends and holidays, and only to the OIJ office rather than the local Fuerza Publica. 

Neighbors have recommended that, should your vehicle be stolen, the first thing you should do is notify the local taxi companies who can tell their drivers to be on the lookout for it. They have more eyes open than the Fuerza Publica could possibly muster.

David, that's good info! Thanks! I didn't know any of that! Is the slow payout only on STOLEN vehicles or also on totaled or badly damaged vehicles?

Edited by jamesofomaha
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17 hours ago, jamesofomaha said:

David, that's good info! Thanks! I didn't know any of that! Is the slow payout only on STOLEN vehicles or also on totaled or badly damaged vehicles?

I have no experience with totally destroyed or disabled vehicles to share, James. Sorry.

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